With the investment market in the UK providing little expectation of capital appreciation in the foreseeable future and rental yields being so low because of the high capital values, there has never been a better time to consider alternative countries.

North Cyprus is one of the best options, it is an emerging market where there are significant advantages. Property prices are well below those in the rest of the Mediterranean, giving massive scope for growth, rental returns are excellent. In addition as a former British colony, many of the hurdles for an investor are easy to understand as the language of commerce is English. Add to that the fact that the British influence has always been a big attraction to visitors gives you a strong demand in the future.

The prospects for the market are improving all the time and the opening of the new golf course at Esentepe is an example of this. The golf course will open up the option of achieving rentals all year round and this is bound to impact on both capital values and rental returns.

BUYER/SELLER TIPS

• Decide upon the timescale you wish to invest over and whether you are biased towards capital appreciation or rental return.
• Capital appreciation rates whilst good for both villas and apartments will be superior in different geographic locations.
• Whilst it is possible to “turn” an investment as soon as it is completed, you should really plan for a timescale of 3+ years.
• Decide whether you are looking at the long term, or holiday rental market, there is good demand for both, but different locations can suit each of those markets.
• Make sure you don’t personalise your investment decision, if you can get a 3 bed villa for £80,000, don’t spend £100,000, when the first is likely to achieve higher capital appreciation and will also achieve a higher rental yields.
• To help assess your strategy it is realistic to conservatively assume capital appreciation of at least 10%pa and a rental return at the same sort of level.

Take all these factors into account and in a few years you will look back and think what a fantastic decision I made to invest in North Cyprus.

FINANCE AND MORTGAGES

• Most property investors do not buy their property from cash resources, cash doesn’t work for you after all!
• So most people will borrow in order to finance their property investment in North Cyprus.
• The most effective method of financing is via property assets you own in the UK, interest rates are very good and many UK lenders have the flexibility to provide additional funding.
• You need to make sure that you have an ability to service the additional borrowing from your income streams and also adequate equity justify approval of the additional borrowing.
• If your mortgage lender has a policy which prevents them from lending to you for property abroad, don’t worry, there are plenty of providers out there who will do.
• We can put you in touch with a UK based mortgage broker who will establish what your requirements are will search out the best deal to meet your needs.
• The broker can at the same time provide you with a mortgage health check to ensure that your current lender is providing you with the best deal available, which is certainly not always the case.
• There are the first “green shoots” of a mortgage market beginning in North Cyprus, however this is very specialised in nature. It is essential if this is an option that you are looking at that you contact us first in order to discuss and potentially tailor the investment proposal.