The term 'Buy-to-Let' means simply the purchase and ownership of a property through normal procedure. Once completed the owner seeks to rent this property for a regular income exceeding annual mortgage repayments
We aim for our "Buy to Let" investors to be able to offset the majority of annual mortgage repayments during the High Season and to take advantage of the low Season to provide a solid secondary income stream.
Make sure your buy-to-let investment is in a rentable area and work from there, check rentals sites to see where people are looking for and stay competitive.
Paul decides to purchase an investment property and after speaking with SLV Estates and discussing his requirements with our investment experts, he decides that the "Buy-to-Let" investment strategy is for him.
Paul purchased a villa on a golf course for 325k Euros, rented this property out in the Summer and the Golf Season for 26 weeks and received a rent of 21.500 Euros, his return would be over 5% per year PLUS there would be capital appreciation to take into account.
Property investing has paid off handsomely for many people, both in terms of income and capital gains but it is essential that you go into it with your eyes wide open, acknowledging the potential advantages and disadvantages.
If you know someone who has invested in buy-to-let or let a property before, ask them about their experiences - warts and all. We have many clients who are happy to share their experience.
The "Buy-to-Let" model is becoming more and more popular in Cyprus with the increase in demand of rental property as many holidaymakers are now utilizing the Internet to benefit from cheap flights and cheaper accommodation by booking direct.
The final decision to be made by the "Buy to Let" Investor is which letting strategy to use. Its obvious that the highest income is made by the property owner by letting out short term during the high season. However you can off-set this against the increased overheads in constantly finding short term rental clients and the maintenance costs between clients. Long term rentals typically pay less on a month on month basis but usually require far less input from the property owner and the rental income is fixed over the course of the year. Some property owners choose to rent long term during the low season and then short term to higher paying holiday clients during the high season. The decisions to be made on your letting strategy are usually answered in part by the property you purchase. Some properties lend themselves to short term holiday makers and others to long term locals as a permanent home. Our experts will help you decide what's best and choose the property and rental strategy that's best for you.
The "Buy to Let" Strategy is not ideal for EVERY investor and it is essential that property for this strategy is chosen wisely as it needs to be a rentable property in a popular location to allow the investor to maximize income from the Investment.
The other benefit from this type of Investment is that during the time this property is being rented and earning the Investor an income and holiday home it is still appreciating in value at one of the fastest rates available. All in all the "Buy to Let" Investment model is a sound investment decision and Cyprus is currently an ideal location to deploy this strategy.
The island of Cyprus has always been considered one of the top property destinations, and now with the recently introduced new tax laws, there is certainly no time to waste for potential property buyers.
Cyprus has just reduced its buying costs and Tax to incentivise buyers/investors.
This makes the return on the investment upon selling very attractive as no capital gains tax to pay on properties purchased up to December 2016.
Significantly, the new regime makes Cyprus currently the ONLY COUNTRY IN EUROPE to provide incentives of this level that effectively give investors tax-free profits until the end of 2016:
The law reducing the Property Transfer Fees for transfers that take place before 31 December 2016 has been published and will be particularly welcomed by those waiting for their deeds.
For transfers that take place before the 31st December 2016:
(a) If VAT was paid on the property, no Property Transfer Fees are payable.
(b) If VAT was not paid on the property, the Property Transfer Fees are reduced by 50%.
The enacted tax law includes a 100% capital gains tax exemption in relation to the disposal of real estate in Cyprus purchased between July 16, 2015 and December 31, 2016. Capital Gains Tax is normally paid on the profit made upon property disposal at the rate of 20%.
Since 8th June 2012, any person that is buying his/her first permanent residence in Cyprus can apply for a reduced VAT rate (defined at 5%). It is no longer required (as it was previously) to become a permanent resident first and then to apply for the special rate of 5% Cyprus Property VAT. The Purchaser must complete a form with the VAT Authorities (the same as all Cypriot nationals) declaring his/her intention and commitment to use the house that he/she is purchasing, as the permanent residence for himself and /or his family in Cyprus.
Since 1997 family run SLV Group have been selling, sourcing and renting properties in Cyprus. We have offices in both the UK and on the island and are fully independent. Our aim has always been to offer aservice well beyondwhat most people expect and make your move, or trip, to Cyprus as simple and enjoyable as possible.
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