Do you dream of owning your own Cyprus apartment or luxury villa? How many times have you sat in front of the TV watching those reality programs about happy people buying vacation homes in the sun and wished it was you? You may even have done some research on the whys and wherefores of buying an apartment in Cyprus, only to dismiss the whole idea as too expensive for someone like you. The truth is, you might be surprised to learn that the majority of people who own property in Cyprus are in fact just ordinary John’s and Jane’s, just like the rest of us. The only difference is that her desire to live the dream of owning a home in Cyprus far outweighed any arguments against the idea. So they took a closer look.
Few people would argue that property is a great investment and an apartment in Cyprus, either as a holiday home or as a long-term project, is no exception. Traditionally, property always seems to be just a little bit more expensive than you think you can afford in terms of loan or mortgage repayments, and that’s usually enough to deter most Cypriot homeowners before they even get started. However, there are ways to break down such barriers even for the average buyer if you do some homework beforehand. As the old saying goes, “there’s more than one way to skin a cat”, the same goes for buying an apartment in Cyprus.
Most people will have some equity in their primary residence against which they could at least pay enough for a 20-30% down payment on an apartment in Cyprus without costing the earth in additional mortgage repayments. It is argued that this form of raising capital against your existing property is the cheapest way of long-term borrowing. Caution and foresight should always be exercised when securing additional loans for the family home. But at least they would invest the money in a Cypriot apartment, which in turn should bring equity to that investment, rather than buying disposable items like cars or vacations that don’t pay at all.
Also remember that if you are buying a Cyprus apartment “off plan” there is a good chance that it will appreciate in value before it is even finished or you have paid the full amount of the purchase price. In fact, many savvy Cypriot real estate investors have gotten rich by buying and selling off plan before all development was complete. Cypriot banks are willing to lend to non-residents for a Cypriot apartment, so increasing the cost should not be a problem either. So the only setback the inexperienced homebuyer faces at this stage is how on earth are they going to cover the loan repayments?
As the face of tourism in Cyprus changes from large hotels and holiday apartment complexes to private apartments or villas, Cypriot apartment buyers are benefiting from a huge rental market to cover their loan repayments. This is a win-win situation for those who own apartments in Cyprus and also for those looking for private holiday accommodation. The apartment owners can rent out their Cyprus property while not in use while still earning a decent income from their investment. All this while you sit back in the sun and watch your Cyprus apartments increase in value year after year.
So if you’ve almost convinced yourself (like many do) that buying a dream holiday home in Cyprus is only for those with fortunes under their beds, think again. In a few years you could be living your dreams and congratulating yourself on the great step you’ve taken. On the other hand, you could scrap the whole idea and end up sitting at home in the cold thinking how you almost broke through but never actually bought one of those beautiful Cyprus apartments.