by Esther Howard
Buying Cyprus residential property as an overseas investor. If you are an overseas buyer, you may be considering buying Northern Cyprus residential property as an investment whilst the value of the foreign exchange is powerful as compared to local currency. We are trying to explain what to decide before checking the real estate market on the island, the title deed type, what to know before investing, what to know after investing, what are the expected ROI figures valid in the business, and the importance of getting professional advice for real estate in Turkish Republic of Northern Cyprus (TRNC).
Set clear objectives before investing in real estate abroad first of all, you need to know what exactly you are looking for before you decide to buy property in TRNC.
- Are you looking for a capital gain?
- Buy property in Northern Cyprus and get permanent residence?
- A holiday home?
- Are you planning to move to Northern Cyprus?
Depending on the investor’s requirement you can find different options in Cyprus and making the decision in the first stage will save a lot of time for both parties between you and the company advising you to find the best possible option. If you know what exactly you are looking for, then let’s have a look at the information and the figures about real estate in Northern Cyprus. After buying an apartment from Turkey, you need to pay some fees to the developer or the government or to insurance companies because of the things compulsory by the government.
Title Deeds in North Cyprus
One of the main question property buyers in Northern Cyprus ask themselves are the title deeds of the property. Title deeds are the full ownership of the property purchased in Northern Cyprus. It should be noted that even if the owner of a property did not receive title deeds, he still is the rightful owner of the property if his purchasing contract was registered in the Land Registry of Northern Cyprus and he can sell or rent his property. Most people already know that in Northern Cyprus there are several types of title deeds – Turkish Title Deed PRE-74, and Exchange title deeds.
If you make your all investigation and find the real estate company that you feel safe with when you are talking on the phone with a representative or when you meet with the representative in Turkey, then it would be better to go on with that company. Otherwise, the investor is wasting both his/her time and the realtor’s time, since marketed projects are almost the same for well-known real estate companies. Before making a decision, it would be better to investigate more and more and check the options as much as possible, the real estate company offering, and make the decision before visiting Cyprus about working with which real estate company.
Finding a reliable, profitable buy-to-let property in the Turkish Republic of Northern Cyprus that generates healthy returns can be an exciting investment. The Northern Cyprus property market is hot. If you’re thinking of getting into property ownership so let property, now is the time to do it. Due to affordable property prices and international students and tourists in Cyprus, more people are renting than ever, and both house prices and rents are seeing significant increases.
Capital appreciation is between 10% and 15% in Northern Cyprus, rental income from residential properties is between 3% and 5% and rental income from commercial properties is between 5% and 8% in Cyprus. If you compare the prices between residential and commercial, residential properties are cheaper than commercial properties. So, according to your budget, you need to choose which platform it suits you. For Cyprus, it would be better to think of total ROI including capital appreciation and rental income.
It is a big mistake to focus only on rental income or capital appreciation for the local real estate market. If you’re buying a property to rent out, you’ll need a buy-to-let mortgage – unless you’ve enough cash set aside to buy outright. Buy-to-let mortgages come with several key differences from residential mortgages (a loan against a property you live in). So, if you’re considering becoming a landlord, it will help to get to grips with the basics first.
