Cyprus Investment Property – Purchasing with a Mortgage

by Tim Martins

The real hot spot at present for some amazing property investment bargains is Cyprus. You will soon fall in love with the really mild winters and cherish the really relaxed way of life that the island beholds. You will also enjoy the crystal blue waters, the Mediterranean diet, the magnificent landscapes and chatting with the local Cypriots.

There are daily flights from many UK airports to Cyprus so you will always be able to hop on a flight with little notice. Cyprus is a modern day European country with all the mod cons that you are accustomed to and most of all you can get Sky TV there so you will be able to keep up with whatever soap you are hooked to.

If you buy in Cyprus you are not just getting a great property investment, but also the chance for free holidays and the chance to earn some real profitable rental income. The long season means you get enough income to cover the mortgage and other property running costs with net profits being shown at the end of the year.

Loans and Mortgages – Local Banks in Cyprus are very open to giving mortgages to foreign investors so it is probably the best option for buying property there. One tip if buying a new build would be to choose the same bank that is financing the new development project.

On the other hand, if you try another bank, independent of the developer, you will have to pay a bank guarantee which will be 1.5% to 1.8% of the value of the property annually until you get the title deeds.

Legal Procedures When Buying Property – The legal system in Cyprus is based primarily on the British system and safeguards the buyers’ rights in many ways. For the buyers’ protection, once the sales contract has been signed and a deposit paid, the Land Registry in Cyprus provides a simple and effective legal instrument called the ‘Specific Performance’.

This procedure protects the purchaser’s ownership rights until the title deeds are issued in their name. The contract cannot be withdrawn by anyone and therefore the property cannot be mortgaged, leased, sold or transferred. This status can only be changed by the purchaser.

When deciding on purchasing a new build villa in Cyprus, you will need to get important advice from an English speaking Solicitor. Just check that they are not involved in any way with the building project that you are interested in and you can expect to pay them fees totaling about 1% of the property value.

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