Purchasing a property in North Cyprus
Any transaction, whether it is an asset or a liability, is a financial investment, but purchasing a property in North Cyprus is a unique process. Of course, there are always advantages and disadvantages, as well as other unresolved difficulties. Is it profitable, for instance? Then what do you do with it?, and so on. Is buying real estate in North Cyprus a good investment?, which will not only be used for recreation or living but will also generate real revenue. So, let us take a look at this issue using Northern Cyprus as an example.
Cyprus is an island in the Mediterranean Sea
If you are new to this blog and need to know more about Cyprus, particularly the Northern part of the island, here is a short piece about North Cyprus that goes into much detail. There was just one Cyprus until 1974, when, due to political and other causes, a split occurred between the Turks and the Greeks, resulting in the division of the island into two states: North and South.
Possibilities for acquiring real estate in North Cyprus
The purchase of property in North Cyprus is often more realistic for ordinary people (not oligarchs) and more intriguing in terms of investments. So, one of the benefits of all of this is that real estate prices are currently significantly lower than in similar places, such as the South.
Another advantage is that practically all developers in Northern Cyprus offer loans and installments for the purchase of real estate. In addition, the initial payment for real estate is merely 30–50% of the entire cost. And, of course, the biggest benefit is that the buyer may rent out his newly acquired property to tourists.
Owners of property in North Cyprus can give an apartment to a real estate developer for management and to obtain a specific income from it, which is on the average 7% each year. Although 10% is genuine in a good season.
You won’t have to worry about cleaning or property maintenance because it will all be taken care of on the spot. At the same time, you are free to visit your unit if you have already informed the complex’s administrative assistant.
Additional payments are made
When it comes to the purchase, there are still a few things that customers normally notice. These are referred to as “extra payments.” These prices include the initial deposit for real estate reservations. The deposit is non-refundable, however, it will be credited to you as payment if you decide to purchase the property in North Cyprus.
There is also VAT (which is about 3%), Stamp Duty (0.5%), and other taxes (which are different for everyone). The necessary tax for the Title (ownership) is also 3% but if you are lucky, you can get it for 1%. In sum, the best-case scenario may result in an increase of 10% in the property’s worth. But this is not always the case; in most cases, it is the opposite.
However, real estate in Northern Cyprus is a very beneficial investment, both in terms of accumulating assets and in terms of personal life and relaxation. Every year, you can return to your property in North Cyprus and bask in the bright, sunny days of a peaceful existence. Northern Cyprus attracts an increasing number of visitors each year; the country is expanding steadily with a bright future ahead of it. Everyone who has ever visited the island is aware of how speedily development occurs on the island, especially in terms of infrastructure. And the number of those who wish to relocate to North Cyprus is equally growing.
North Cyprus is one of the safest countries on the planet, with almost no crime. The warm sea, dimensional climate, approximately 330 sunny days, a wealth of fruits and vegetables, the presence of mountains, gorgeous landscape, and relatively low cost of living make this North Cyprus unique in its own right. When you combine this with a low-cost property in North Cyprus, you have got yourself a fantastic place to live as well as an excellent investment opportunity.
Most people who have considered buying real estate in another country at least once ask themselves, “Is it worth it?” You can learn more by reading some aspects of this or that topic and weighing the benefits and drawbacks of buying a property in North Cyprus. Because Northern Cyprus is an unrecognized state, it is thought that purchasing real estate there is extremely risky. Let us have a look at some of the challenges involved.
1. There is a possibility that the developer/agency or someone else will “throw” or defraud money.
2. They can sell what has already been sold, or they can just abandon the project, leaving the customer “on the street” with nothing. (Yes, this happens, and it was primarily due to the buyer’s attempt to save money by going through the wrong way).
It is important to understand that the majority of the risks involved with buying a property in North Cyprus can be attributed to those who are unfamiliar with local rules, as well as buyers’ desire to save money by skipping the appropriate documentation and licensing process.
1. Northern Cyprus is currently, and has been for over 40 years, regarded as one of the safest countries in the world.
2. Real estate prices are 2-3 times lower in comparison to other European countries (This is especially true in vacation locations).
3. Year after year, the authorities in Northern Cyprus strive to preserve the rights of foreign investors to the greatest extent possible. As a result, the country acts as a guarantee for real estate purchases and protects your investments at the state level (If all transactions were legal and done correctly).
4. Agencies do not make real estate markups; all prices in Northern Cyprus are developer pricing, and they cannot differ from those of other agencies. Furthermore, the client’s desire to go directly to the developer in order to gain a bonus or further discount is unjustified, as such rules exist. Delegating sales responsibilities to agencies is something that developers are interested in. When a person purchases a property in North Cyprus through a real estate firm, he or she almost always receives additional benefits in the form of additional services, documentation support, a discount, or a gift.
The most significant aspect, however, is the ability to view all of the alternatives and developers in various locations of Northern Cyprus. And then select the best and most appropriate alternative.
5. The developer, not the banks, issues the credit/installment.
6. Income statements and other financial documents are not required in Northern Cyprus. (No one looks into your pocket or asks questions like: where did he get it?, why did he get it?, etc.).
7. Northern Cyprus has progressed in tenfold stages throughout the last decade. And, as most investors believe, this will be one of our planet’s greatest. The expansion of infrastructure, the influx of tourists, and the country’s economic progress are all obvious even a year later. All of these appeal to potential investors and home purchasers in Northern Cyprus.
In Northern Cyprus, the average cost of a 2 + 1 apartment costs is between 80,000 to 200,000 GBP (depending on current exchange rates), but in Southern Cyprus, it costs 350,000 euros and above. The disparity is evident, amounting to 235.520 Euros, which is a sizable sum. Do you doubt it?
Make a comparison with yourself. Some people may claim that the Republic of Cyprus, the Eurozone, and other things are official. However, it is difficult to disagree, but nothing precludes us from moving discreetly between the parties in different ways in this circumstance. Nobody ruled out the possibility of arriving on the south side, taking a taxi or car to the north, and then driving freely.
Another point to consider is that the number of crimes/cases committed by the parties is vastly different, not for the better in the South.