Property rental - What's best?

Penguin



Joined: 14/09/2007
Posts: 4

Message Posted:
14/09/2007 21:34

Hi there,



Wife and I visited TRNC this summer. Loved it.



So much so, we've decided to retire to TRNC, but not just yet (still got a few years before the bus pass!) So determined are we to live in TRNC, that we have decided to invest now so as to take advantage of current property values and to then buy the property of our dreams in a few years time.



Any property we invest in must retain its value in line with property market trends and hopefully reap an income.



Any suggestions on type of property and location would be much appreciated.

mikedalton


Joined: 19/06/2007
Posts: 21

Message Posted:
15/09/2007 17:47

Penguin



Glad to read you and your wife both enjoyed your trip to TRNC. I think the question you've raised is a good one. We've certainly looked at things in a similar way when we purchased in 2006.



The rental market in North Cyprus is not easy at the moment because of the excess supply over demand that keeps rental prices low.



If you can achieve an annual return on your investment of something over 7% that's a good result and your ability to achieve that will depend on your marketing and sales efforts, the location of your property, and repeat business. Do NOT believe the marketing hype you'll receive from many estate agents - it's simply a lot of hot air in many cases.



In other words say you've paid £100,000 for your property, you'll want to aim at an annual rental income, before deductions, of around £7,000. There will also be other expenses including legal costs, furniture, electricity, water, gas, maintenance, insurance, cleaning and agents fees.



Capital appreciation over the next say 5 years is much more difficult to evaluate. That is the main reason that property in North Cyprus is relatively cheap at the moment.



The reasons are as follows:



- Political situation on the island (see other discussions on subject)

- Lack of available mortgage finance.

- Poor infrastructure at the moment.

- Negative public perception by outside world.



Fortunately, all of these issues are being dealt with and improvements are taking time.



On the plus side you have a beautiful, largely unspoilt area with fabulous scenery, a wonderful climate, excellent fresh food and friendly people.



Overall, I think you will need to be prepared for the long haul, enjoy the property you buy for your own holidays and short breaks.



Take a look at plenty of property on your next trip and don't make a decsion until you find something that hits the sport. When that happens make your mind up and move forward.

Penguin



Joined: 14/09/2007
Posts: 4

Message Posted:
16/09/2007 20:55

Thanks Mike for the info.



Wife and I are both intending to go into this with a completely open mind; with hopefully a stern business acumen, but also with our eye fully on the ball of what we want to achieve in the year that we retire.



Our plans are to use what capital we have (£125k to £150k) to buy a holiday villa or two apartments that will attract a rental income. Strangely enough, the income is not as important as buying the right sort of property that will retain its value in line with property market trends in the TRNC. As we are not able to retire for a few more years as yet so it makes sense to let out the place whilst we are in the UK either as a long term let or as a holiday let. It doesn't matter. We just want to put the property to some use whilst our capital is waiting for us to turn up.



We are not too fussed about the level of the rental income even to the extent of going for a cheap rent in an expensive villa as it is our opinion that it is better for the property to be occupied for as much as possible (even cheaply) than to be unoccupied or to be holiday let at an expensive rent for a short time in the year.



Then when it comes to our time, to then sell that property and buy the villa of our choice once we are out there. When we had our holiday last month, we looked at properties and prices; we talked to a number of people done a fair bit of extensive research since, so we more or less know what we are letting ouselves in for.



We are aware of the 'fluctuations' (low take-up, excess supply) in the rental market, but I think this will improve over time. What we don't know is what the property market is currently like when it comes to selling a property or how long it takes as this come to us in time.



A lot more decisions in this, but those are the basic facts at present Any help or other info would be great. We are planning on coming back to the TRNC soon.

pilgrim



Joined: 11/05/2007
Posts: 1404

Message Posted:
16/09/2007 22:12

New villas are prepared to reduce their last phase 3 villa, also a couple of off plan purchasers are now selling, bearing in mind either purchase would be 20k less than previous villas sold, good opportunity for instant asset growth. Current rental for same villas 550-600 pcm. holiday rentals 500pw

davidoff


Joined: 21/04/2007
Posts: 438

Message Posted:
17/09/2007 01:14

Hi all,



I agree with many points mentioned above!!



I think that this year will be the make or break of north cyprus as there is many political issues and boundaries to be broken!



Regarding turkey and the eu status, recent talks between SC and NC could all effect the future on NC- So this has put a slight hold/stall on the market at the moment!



THE POLITICAL SITUATION will determine the future of NC and if the economy becomes stable and they gain international recognition from other countries then the rest will fall into place!!!



DIRECT FLIGHTS ALSO WILL START TO TRIGGER A HUGE GROWTH AND DEVELOPMENT IN ACTIVITY IN NC!!

People will have confidence in the market and people will start to buy in their droves, rapid tourism growth,demand will start to outstrip demand and property prices will start to rise sharply and the economy will start to thrive very quickly!



This is when more businesses and investors will arrive , more funding will be provided,infrastructure will improve, and mortgages/loans will start to arrive for foreigners !

pilgrim



Joined: 11/05/2007
Posts: 1404

Message Posted:
17/09/2007 12:41

Hi Davidoff

I like your positive approach, but I'm don't feel their will be any movements towards a TRNC agreement with the south within the foreseeable future, how do you think his will hinder growth in all areas.

cheers

p

mikedalton


Joined: 19/06/2007
Posts: 21

Message Posted:
17/09/2007 20:33

Penguin



I don't feel your approach of buying a starter pack now with the intention of keeping your hand in and then upgrading is your best approach.



When the market turns in NC good properties will increase in value by 4 or 5 times but cheaper properties will still be cheaper properties and be subject to the law of supply and demand. There will still be plenty of lower cost places on the market. I've noticed a tendency for NC builders to build down to the lowest price they can achieve to attract buyers without resort to loans that are not easily available.



I think with £150k you can now buy a decent 3/4 bed villa with pool in a good area and one that you'd be delighted to live in when you move over to Cyprus.



Managing two smaller properties is also a hassle and will involve a lot more work. Finally, selling the property and buying another will involve in the Permission to Purchase process twice that is time consuming, and going through the process of finding a suitable place. See other forums for the Buying Process in NC.



Overall, I think the market will strengthen in the next 3 years if some of the political moves in the pipeline come to fruition. When that happens you won't find it easy to buy what you want for £150k.

Penguin



Joined: 14/09/2007
Posts: 4

Message Posted:
18/09/2007 00:29

Thanks for all your messages.



Our intention of buying firstly is to place our capital in a part of the property market that will rise with the market trends. The capital that we invest would be enough to buy the kind of property at today's prices. As prices rise over the coming years, then so too would our investment. Eventually, and at the time we retire, we'll change properties for what we really, REALLY want.



I take on board managing two smaller properties a hassle. I did have a mind that this might be the case. Also, selling and buying (again) a property simultaneously as time consuming. This may probably be the price to pay to keep our dream alive, but comments and experiences from other forum members is what we are seeking to find the best route.

davidoff


Joined: 21/04/2007
Posts: 438

Message Posted:
18/09/2007 11:53

Hi all,



As far as Im aware you can only buy 1 property per family name/hosehold!



But on the other hand if you and your wife have different surnames you can buy, also you could buy and put it into your childrens name which is what some are doing also!

And the othere option is that you can buy more than 1 property but you can only apply for PERMIT TO PURCHASE -PTP For 1 only!!



See ya D

victoriasloss


Joined: 27/04/2007
Posts: 46

Message Posted:
18/09/2007 14:48

Sorry not me Penguin - I don't know how you got an e-mail,



We are currently setting up another website designed to guide perople safely thru the buying process.



Although it looks the same as the other website at the moment, the wording is different. we want to have different topics and links to show that it can be safe buying in the TRNC but to do homework.



We need ideas and input to help others. We will not name and shame on the new site - warning website is for that - but guide people to the right Estate Agents, Lawyers and Developers etc. Please feel free to send us your recommendations. We will be happy to use those that have names and e-mail addresses attached



Vikki



http://www.northcypruspropertyinfo.com

IvanMutyaev


Joined: 30/12/2010
Posts: 22

Message Posted:
17/01/2011 19:39

Penguin



We are specialised in investments in TRNC with 9-10% yearly rental income with high liquidity properties.



If you are interested please mail me : mityaev_ivan @ mail.ru

Lilli



Joined: 21/07/2008
Posts: 13081

Message Posted:
17/01/2011 19:42

Why are we pulling up posts from 4 years ago.

Whistler


Joined: 28/07/2008
Posts: 1332

Message Posted:
17/01/2011 22:27

Things have changed somewhat since then hey Liz? xxx

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
17/01/2011 22:29

Has anyone told the Russians that The Beatles have split up?