Investment Plan for Cyprus Properties

Each client is very important to us! We treat each and every potential client with the same respect and professionalism regardless of their budget. We listen carefully to their needs, assist them with their research, invite them for a free inspection trip and then present them with an investment plan matching their specific needs.

You can find below a sample draft investment plan or click here for a word document. To get your own investment plan please contact: Mr I. Ioakim / Tel.+357-22760051 / Mob.+357-99686618 / info@cyprus-online.com

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Draft Investment Plan for AAA.

Purpose

• Invest around CYP£51,000 (61,000 GBP) in off-plan Cyprus properties with the intention to rent them out when completed.
• Possibility to sell some or all before completion in case of satisfactory property appreciation.

Targets

• Get maximum property appreciation
• Get maximum annual rental return.
• Get best payment terms
• Get best discount possible

Things to consider before purchase (Cyprus 4 Properties is doing all these for you but you are still advised to do your own research in order to verify everything and feel more confident for your property investment)

• Do extensive research before deciding and only invest when you feel confident enough. There is no reason to hurry because there are always good deals in real estate. It’s better to delay a bit and even loose some opportunities than lock your money in something difficult to get out off.
• Do research on each developer to find out reliability, quality, e.t.c.
• Compare prices of similar developers.
• Never take immediate decisions or show developer / owner great interest. Study everything and make offers to each developer / owner. Get their answer and decide on the best plan by doing actual calculations of both property appreciation and annual rental return.
• Consider legal & tax issues in order to minimize income loss.
• Diversify to minimize risk
  

Location
Larnaca –Larnaca has the most potential from all other towns in Cyprus. The low property prices, the current infrastructure changes (marina expansion, shut down of oil distillery, construction of major highways, e.t.c), the increasing local & foreign demand and the discounts (20-30%) we get from developers offer the best opportunities for the highest return on investment. Larnaca at this point resembles Paphos 10 years ago - before the big construction boom started and before everybody went crazy about buying properties there and making prices skyrocket.

Featured Investments
LA10-14 - http://www.cyprus4properties.com/off-plan-property-investment-apartment-complex.html

A nice, beautifully designed complex, of 5 apartment blocks, just 800 meters from the Larnaka - Dekelia Seafront. Spacious 1 bedroom (55 sq.m) & 2 bedroom (85 sq.m), apartments with spacious 13-95 sq.m of covered verandas. Buildings beautifully designed, with high quality finishings and a large common swimming pool. The whole area is booming from new construction and prices are on a constant rise. The two blocks are sold already and there are only 3 apartment blocks available. Investors (minimum purchase of 2 apartments) who will buy with us are entitled to a 15% discount. . The market value prices are £50-83,000.For Investors we have the following deal with the developer:

1 Bedroom Apartments (1st floor apartments):
a. For 2 apartments the price is £44,000.
b. For 3-4 apartments the price is £43,000 per apartment.
c. For 5 or more the price is £42,000 per apartment.

2 Bedroom Apartments (1st floor apartments):
a. For 2 apartments the price is £58,000.
b. For 3-4 apartments the price is £57,000 per apartment.
c. For 5 or more the price is £56,000 per apartment.

Buy to Let Investment Scenarios
Buy three, 2 bedroom apartments in LA10-14 Larnaca for £57,000 each or £171,000 total. Pay 30% (£51,000) down payment and the rest (£120,000) will be due upon completion in 1.5 years. Upon completion you mortgage the £120,000 for 20 years. The monthly installment will be around £950. The monthly cash flow (guaranteed by us) will be 3*£400= £1200 (covers mortgage and leaves you with £250 income). Therefore you have 28% (£14,400/£51,000) annual rental return. In addition to this, you will also have the annual appreciation which is estimated to be more than 10%.

Buy to sell Investment Scenarios

• 0% property appreciation - Buy three, 2 bedroom apartments in LA10-14 Larnaca for £57,000 each or £171,000 total. Pay 30% (£51,000) down payment and the rest (£120,000) will be due upon completion in 1.5 years. A few months before completion, you take advantage of discount (15%) & property appreciation (0%) and sell them and get 3*£65,000 = £195,000. That’s £24,000 (£195,000-171,000) profit or 47% return on investment (£24,000/£51,000).
• 10% property appreciation - Buy three, 2 bedroom apartments in LA10-14 Larnaca for £57,000 each or £171,000 total. Pay 30% (£51,000) down payment and the rest (£120,000) will be due upon completion in 1.5 years. A few months before completion, you take advantage of discount (15%) & property appreciation (10%) and sell them and get 3*£70,000 = £210,000. That’s £39,000 (£210,000-171,000) profit or 76.5% return on investment (£39,000/£51,000).

You can then re-invest this money in other off-plan properties and start making a considerable property portfolio. We usually recommend this since there are no hassles, mortgages, e.t.c and you still have the option to let them if you decide.

P.S. We recommend selling when at around 50% return on investment and moving to the next investment. That way you don’t have to wait too long to reach your target and you keep increasing your property portfolio at 50% rate which is very good considering any other investment.

Notes:
Reservation fee - £3,000 per apartment
Furniture & appliances per apartment - £2-5,000