Cyprus Property – Should You Rent or Buy?
It may seem absurd to suggest that there could be clear advantages to renting property in Cyprus rather than buying, but that may be the case in certain circumstances. The writer has always been quick to expound on the benefits of owning property in Cyprus, especially in relation to Cyprus holiday villas or apartments. However, a growing argument for long term rentals in Cyprus, particularly by retired couples and even some families too. The good news for them is that there is no shortage of all kinds of properties available for rent throughout the island, including the major resorts. However, the question most readers will ask is whether there is any advantage to paying rent rather than buying property in Cyprus with a conventional mortgage.
An increasing number of retired couples are selling their homes and moving to Cyprus to take advantage of the island’s mild climate and more relaxed lifestyle. These upwardly mobile retirees do not want to be burdened by the burden of owning a home in Cyprus and prefer to rent it out. They have calculated that the interest on the money from the sale of their UK properties is enough to cover the rent on a property in Cyprus. They then have the freedom to move from one place to another with ease, without any of the hassles involved in buying and selling property. Also, should they need to return to the UK for whatever reason, they would still have the benefit of their cash assets in the bank.
Other older couples have chosen the option of renting property in Cyprus to avoid things like inheritance tax and the possibility of the UK government liquidating their real estate assets. This is often the case in case they need to go to nursing or care homes later in life. By either giving your property assets to your children or selling them outright, they put them out of Treasury’s reach. The other advantage seen in such an arrangement is the pleasure of seeing your children benefit from their inheritance while the parents are still living. Since Cyprus and the UK have reciprocal tax and pension arrangements, these couples can even pay their pensions directly into a Cyprus bank account.
In the case of holiday rental properties in Cyprus, there is no point in renting such a house or villa because the rent would be based on the holiday market. The cost of renting these properties on a weekly basis would be astronomical and totally unfeasible for anyone considering a long term contract. For example, people moving to Cyprus or wanting to spend the whole winter there. Many Cyprus holiday property owners are willing to negotiate realistic rates for long-term rentals, especially during the winter season. The price difference between vacation rentals and long-term property rentals is huge, to put it mildly. Long-term rental in Cyprus is always a cheaper option because the market is self-regulated by the average wage which, in turn, determines the actual affordability of rentals.
The ironic twist is that many Cyprus properties that earn long-term rentals are often just down the road from identical houses that generate four times the amount of holiday rentals. So if you fancy living in a luxury Cyprus apartment or even a villa with your own private pool, a long-term rental could be just the thing for you. With the Cyprus property boom continuing unabated, there is a wide variety of properties available for long-term rental and there is no shortage of willing tenants either. A good proportion of these Cyprus properties will be owned by the former owners of the land because that is how the developers pay them, with houses instead of cash. So if you like the idea of a home in the sun but don’t want to buy, perhaps you should consider renting property in Cyprus.