Outstanding Low Cost Investment - Cyprus
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Investment Village, Emba, Paphos |
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- Studio Apartments CYP44, 995 (£53,000 approx.)
- No mortgage to pay for 5 years! Buy and Forget!
- Interest-only mortgage paid for 5 years. Owner still receives rental income
- These apartments boast superb mountain and sea views and are ideally located for good rental returns
- Expected net rentals of over CYP2,000 pa long term, and over CYP2,650 pa short term
- All 54 units secured for our clients – Expected to be sold within next 60 days
- 10 mins from Paphos, 20 mins from airport
- CYP2,000 Reservation fee
- Deposit of 30% required (from CYP13,500 or £16,000), then no more to pay for 5 years
- 70% mortgage available (through the Alpha Bank Cyprus)
- Example interest-only mortgage costs of CYP1,260 (£1,500) per year
- Includes communal swimming pool and private parking. Work is scheduled to complete March 2007
Exchange rate CYP 1 = £1.194 assumed
| Purchase price |
£53,000 |
| Deposit & fees |
£19,243 |
| 5% equity growth off-plan |
£3,816 |
| 7.2% equity growth year 1 |
£4,091 |
| 7.2% equity growth year 2 |
£4,385 |
| 7.2% equity growth year 3 |
£4,701 |
| 7.2% equity growth year 4 |
£5,040 |
| 7.2% equity growth year 5 |
£5,402 |
| Net Rental income over 5 years |
£16,577 |
| Return on investment = 229% |
£44,012 |
* This example assumes the client takes a mortgage for 70% of the purchase price on completion and keeps for the full 5 years on the Buy and Forget scheme. The growth figures are conservative. |
• Views of Mountains and sea
• Communal Swimming Pools
• Parking included
• Furniture and Air Conditioning available at CYP2,500 approx.
• 365 sq ft, plus 45 sq ft balcony |
Location
These studio apartments are located in Emba just 10 minutes from Paphos town. The local amenities include supermarkets, shops, banks, tavernas and bars. The apartments have open plan living areas, communal swimming pool and private parking.
A superb investment opportunity in conjunction with Superior Investments and the Alpha Bank Cyprus, offering the potential of over 5 years capital growth and 5 years rental income with an outlay of only 30%. The project has been specially selected and is located to appeal to the rental market.
How to invest
Choose from any of the Studio Apartments offered with this scheme. Purchasers put down a 30% deposit and Superior Investments will assist to arrange finance for the remaining 70% with the Alpha Bank, Cyprus. The mortgage would typically be a 15 year loan on a variable rate with the first 5 years on an interest only basis. After the first five years you will be given the choice of continuing on the current basis or changing to a repayment loan. The mortgage contract will contain a clause that guarantees the first five years interest payments are paid by Superior Investments and ourselves. After this period the loan becomes payable by the purchaser.
 Why Cyprus?
- Full EU member country
- Property prices are increasing at 10-20% pa
- Booming holiday rental market with increasing tourism
- Highly developed infrastructure
- Legal system based on English Standards
- Economically stable
Investment Background – Investment Village, Emba, Cyprus
These apartments are located near the village of Emba with mountain views and sea views. Their location close to Paphos town, its harbour and international airport make this an excellent location to attract both long term residential lets and short-term holiday rentals.
The capital growth of property in Cyprus has increased sharply over recent years, and as a result of joining the EU in May 2004 as well as a planned entry into the Euro, prices are likely to continue in double-digit (10-20%) figures for the short to medium term with healthy, stable growth thereafter. We have used 7.2% in our growth predictions for the next 5 years, which is conservative, but we prefer to under-sell and over-deliver. Even at 7.2% prices will double every 10 years.
 Buy and Forget!
Superior Real Estate (the largest licensed agent in Cyprus) has a dedicated letting department that will assist in finding you suitable tenants. The choice is yours whether you wish to let or if you require it exclusively for your own use. Alternatively you can decide to allocate weeks for your own use and offer for let the remainder. All rents generated (less fees) are due to you.
You can sell during the five year ‘Buy and Forget’ period; as there is no obligation to keep the property should you decide to sell. However, Superior Investments will cease paying any mortgage contributions at completion of the sale.
Also mortgage payments in this 5 year window are guaranteed. Before completion of the purchase, a letter of indemnity will be sent to purchasers informing them of the start and finish date of payments, a copy will also be forwarded to the bank clearly stating that Superior Investments will pay all monthly interest instalments due during the 5 year period.
Your only obligation for the first 5 years is to sign an agreement with Superior Real Estate giving them sole letting and selling rights for the 5 year period. After the 5 year period, or if you sell, this becomes null and void.
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