Assetz® News - Cyprus Set to Become Number One Overseas Hotspot

Cyprus Set to Become Number One Overseas Hotspot

4th October 2005 |

Detailed research from Assetz, the UK’s leading property investment specialist, brings together all the key investment criteria for UK buy-to-let and overseas hotspots, to form the only comprehensive and authoritative property investment tracker.
The tracker reveals that in the third quarter of 2005 Southern Cyprus is looking extremely strong as an investment hotspot. Deposit levels have fallen to just 15% in some areas, which is likely to be the norm next year, and Swiss Franc mortgages are available with rates of just 3.25% making borrowing more affordable. Prices rose by 18% in 2004 and are expected to rocket further with entry to the Euro beckoning in 2007/8. Rental yields remain at a confident 8 – 9% with a year-round rental market in some parts of the island, resulting in a total 72% return on investment. This return is expected to hit 100% in 2006, which would propel Cyprus past France into the position of number one investment hotspot.

Stuart Law, Managing Director, Assetz advises caution on Southern Cyprus’ neighbours: “Northern Cyprus and Turkey are a very different story as the return on cash is not good. Turkey has been hyped as a hotspot however with no mortgages currently available it does not represent a good use of capital for investors. Also prices may be kept artificially high by the presumption that Turkey will join the EU, which is in no way a safe bet.”

Investors looking to cash in on the Bulgarian property boom should steer clear of the coastal resorts such as Sunny Beach where prices are close to reaching those in Spain, but with no guaranteed resale market and a far inferior tourism industry. The ski resorts are a much better investment prospect with year-round rentals and yields of up to 12%, twice those in the coastal areas.

Buyers will need a minimum deposit of 30% of the purchase price, and should not be seduced by promises of doubling their money in one year – this does not apply to the tourist areas any more and resales are likely to be tricky.

Florida remains the riskiest investment zone, with interest rates rising fast and a widely forecast faltering in property price growth.

Stuart Law comments: “Florida is a risk for investors who are likely to face stagnant or falling house prices and be forced to rely on rental income alone. The property boom was based on extremely low interest rates, which are now rising in an effort to turn the heat down on the housing market. Buyers are realising a period of instability is pending, which will trickle down to affect the resale market in the USA fairly rapidly. Another important consideration is that property on the gulf can be very difficult to insure at present, so thorough research is vital.

“Southern Cyprus however is looking like an excellent investment prospect for the coming year. High standards and low costs of living along with virtually non-existent crime rates and numerous tax advantages make Cyprus an attractive option for UK investors, with prices still considerably lower than in France or Spain.”

Cyprus property example:
Mandria Villas offers an excellent investment for anyone wanting to live in a traditional setting only 10 kilometres from Paphos, with prices starting at £172,253 for a three-bedroom villa with pool. Investors looking to rent their property out could expect annual yields of 7% to 9% plus.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/2250.html. Alternatively, please see our full press release archive.