Property Investment in North Cyprus
North Cyprus is fast becoming one of the most popular countries in which to make a property investment for British people not only because UK pensions are yielding an all time low but because the island has managed to keep its natural beauty intact. North Cyprus offers more affordable investment opportunities compared to other European countries, it is possible to expect a return of between 20 and 30% on an off plan investment which completes within one year. It should also be noted that two of the major factors to be considered when looking to purchase a property on the island is that there is no inheritance tax payable and also that property prices are around 50% lower than those in the South of the Island.
Reasons to Invest in North Cyprus
- Having excellent weather conditions all year
- English speaking community
- Excellent beaches and historical monuments
- Cosmopolitan country (Turkish, British, Greek, Middle Eastern)
- Cheap Flights
- One of the most Rapid growing property markets in Europe
- Property prices increase by approximately 20% per year.
- Growing tourism sector
- Favourable tax regime
- Developing infrastructure, transportation, excellent telecommunication
- Legal system similar to UK
- Property prices are lower than those in France, Spain, Portugal and South Cyprus.
- Low cost of living
- Low legal fees
- High return on investment
- Good rental yield
- No Inheritance Tax
There are three kinds of investment strategies which are short term, medium term and long term.
Term Strategy: This strategy
involves off-plan investment. Timescale of this strategy is
normally between 18 to 24 months although it is depended on
the stage and speed of the construction. This strategy is
favourable for investors who want to make a quick return,
because of its simplicity and low initial investment. The
resale of the property is normally made before the property
Medium Term Strategy: This strategy involves either off-plan or resale property by completing on the purchase and holding the property for the period of 2 to 5 years. During this period, the property can be rented for short term holiday lets or long term rentals in order to receive an income before selling on.
Long Term Strategy: This strategy involves an investment of over 5 years and is normally chosen by those who want to utilise the property either for themselves or receive income from rentals on a short or long term basis. It is most effective for those investors who do not need to turn their initial investment around quickly.