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Primarily there are three major Investment Strategies:
Buy to Sell: About buying the property off-plan before the development actually starts, and further selling at, or before, completion and analysing the capital growth achieved during the development cycle. By investing 30% of property’s value at signing contracts and with annual property rise of 10-15%, you can benefit a 21- 32% gain on the property value during the development phase, equating to a 70-100% return on the investment.
Buy to Sell Model
This model is mainly focused on buying the property off-plan prior to the development starts, and further selling at, or before completion time, grasping the capital growth achieved during the development cycle.
- Annual growth as low as 8% can produce returns of 69% over two years
- 10% annual property growth rates can returns a ROI of 83% over two years
- 15% annual property growth rates generates an ROI of 120% over two years
Model 1 indicated below assumes that the villa is purchased at the current market price and the value is shown in UK £ for convenience, however, the present rate of exchange is around £1.20 to each CYP.
Buy
to Sell Model (1) |
Cost
of Villa |
220,000
|
|
|
|
|
|
|
|
|
|
|
Reservation
Fee |
2,400
|
30%
Payment |
66,000
|
Legal
Fees |
1,407
|
Total
Investment |
69,807
|
|
|
|
|
Annual
Growth Rate |
Projected
Capital Value |
5%
|
8%
|
10%
|
15%
|
20%
|
Year
1 |
231,000
|
237,600
|
242,000
|
253,000
|
264,000
|
Year
2 |
242,550
|
256,608
|
266,200
|
290,950
|
316,800
|
Profit
|
21,143
|
35,201
|
44,793
|
69,543
|
95,393
|
ROI
|
30%
|
50%
|
64%
|
100%
|
137%
|
Model 2 is derived from the same example, however, it supposes that the property is rated at 5% below the market price, and it shows its impact on Capital Appreciation and ROI.
Buy to Sell Model (2)
|
Villa
Purchased at 5% below market rate
|
Cost
of Villa |
220,000
|
Value
of Villa |
231,000
|
|
|
|
|
|
|
|
|
Reservation
Fee |
2,400
|
30%
Payment |
66,000
|
Legal
Fees |
1,407
|
Total
Investment |
69,807
|
|
|
|
|
Annual
Growth Rate |
Projected
Capital Value |
5%
|
8%
|
10%
|
15%
|
20%
|
Year
1 |
242,550
|
249,480
|
254,100
|
265,650
|
277,200
|
Year
2 |
254,678
|
269,438
|
279,510
|
305,498
|
332,640
|
Profit
|
33,271
|
48,031
|
58,103
|
84,091
|
111,233
|
ROI
|
48%
|
69%
|
83%
|
120%
|
159%
|
Other Great Benefits of Cyprus
- The climate makes this island one of the healthiest spots in the world with approximately 340 days of bright sunshine in a year
- High living standards but with a low cost
- The general property price level is lower than UK or even Spain
- It offers attractive tax benefits including pensions tax which is @ 5% on income amounts exceeding CY£20,000
- It offers an easy access to and from UK, Europe and other global destinations with over 30 major airlines and two main international airports in Larnaca and Paphos
- Outstanding inexpensive medical facilities
- Left side driving
- Modern and contemporary judiciary, accounting and financial services same as British practices
- Intellectual educational facilities
- Four lane motorways and highways connecting all major towns and international airports
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