Buying a Holiday Let

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andyn2001
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Joined: 06 Feb 2012 16:08

Buying a Holiday Let

Post by andyn2001 » 07 Feb 2012 16:43

I am interested purchasing a Holiday Let in Cyprus for the first time and was looking for some help with the following:


1. What is the market like at the moment, i.e. too many properties, not enough?

2. What is the expected occupancy rate for an apartment in a good location (looking in and around Pahpos Town), so I can calculated yields.

3. Are the current market prices over-inflated, are agents open to offers?

4. Do I have to get a buy to let mortgage, if so what are the indicative rates?

5. Where best to get a reliable conveyancer, Paphos or UK based?

6. Any other advice for a newbie?!

I have a couple of properties in the UK, but this would be my first overseas. I have around 60k to invest and am looking for a 2 bed apartment to let out and use occasionally for myself.

Any advice would be much appreciated.

Thanks,

Andy.



Nigel Howarth
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Re: Buying a Holiday Let

Post by Nigel Howarth » 07 Feb 2012 18:05

Hi Andy and welcome to the forum.

If you were buying an apartment for your own use in Cyprus (i.e. not a buy-to-let) then I suggest you wait a few months. RICS Cyprus suggests that prices of apartments will continue to fall this year - by 10%.

As for buying a property as an investment - you'd better look elsewhere.

The market is flooded with empty and part-completed holiday homes and the overseas market has all but collapsed.

Yields in Paphos are 3.6% for apartments and 1.7% for houses in residential areas. Yields in tourist areas will be lower.

As for occupancy rates, take a look at some of the property rental sites. You'll get 12-14 weeks if you are very lucky.

Other advice for a newbie? Take a look at Cyprus Property News - in particular the 'Property Prices' and 'Investor Centre' sections. And while you are there, get a copy of my 'Golden Property Commandments' from the 'Free Publications' page.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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andyn2001
Posts: 3
Joined: 06 Feb 2012 16:08

Re: Buying a Holiday Let

Post by andyn2001 » 11 Feb 2012 12:19

Nigel, thanks for the info, I'll leave it until next year and see how the land lies then!



andyn2001
Posts: 3
Joined: 06 Feb 2012 16:08

Re: Buying a Holiday Let

Post by andyn2001 » 13 Feb 2012 01:34

Nigel, when you say the overseas market has had it, did you just mean Cyprus, or would that include Spain, Greece, Turkey etc. In the good times were just too may propertys bought everywhere??



Nigel Howarth
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Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: Buying a Holiday Let

Post by Nigel Howarth » 13 Feb 2012 09:25

Hi andyn2001

Some other overseas countries are doing well - you'll need to research them elsewhere as I focus on Cyprus.

Regards


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

Pantheman
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Joined: 26 Jan 2008 14:44
Location: Famagusta District
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Re: Buying a Holiday Let

Post by Pantheman » 13 Feb 2012 15:26

Nigel Howarth wrote:Hi Andy and welcome to the forum.

If you were buying an apartment for your own use in Cyprus (i.e. not a buy-to-let) then I suggest you wait a few months. RICS Cyprus suggests that prices of apartments will continue to fall this year - by 10%.

As for buying a property as an investment - you'd better look elsewhere.

The market is flooded with empty and part-completed holiday homes and the overseas market has all but collapsed.

Yields in Paphos are 3.6% for apartments and 1.7% for houses in residential areas. Yields in tourist areas will be lower.

As for occupancy rates, take a look at some of the property rental sites. You'll get 12-14 weeks if you are very lucky.

Other advice for a newbie? Take a look at Cyprus Property News - in particular the 'Property Prices' and 'Investor Centre' sections. And while you are there, get a copy of my 'Golden Property Commandments' from the 'Free Publications' page.

Regards,
Nigel,

yields for rented properties were always on a low side, if anything now they are higher due to the drop in prices.


I have just picked up for sale some properties in tersefanou, Larnaca with title deeds for a whole lot less than they were originally sold for.. 3 bed town house with deeds 140,000 euros. So you just have to look around for that deal today.
Rics is not an exact science.


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