nhowarth wrote:Hi Charlie,
> a suitable house/apartment to rent out for the next few years which will hopefully offset the loan repayment and also gain in value
The main problem you're going to have is competition - there are hundreds if not thousands of holiday apartment owners looking for tenants. As for prices, new holiday units in Paphos retail around CYP 1,200/sq.m. You may be able to buy a small studio unit for CYP 40,000, possibly a one-bedroom unit.
Over the past 2 years, the price index has moved up by just over 10%. Assuming it continues in this direction most of any profit you make from the sale will be swallowed up in the cost of sale (agents fees plus legal fees - say 7%) plus the cost of cancelling your contract of sale with the developer another 2% (unless you're extremely lucky and manage to complete on your purchase by the time you want to sell).
Oh, I almost forgot, you'll also be liable for Capital Gains Tax on any profit you make.
Regards,
Astutely pointed out, nhowarth.
In the north, on the other hand, tourist numbers are up 28% from the UK on last year and there are only 12,000 hotel beds. It is impossible to rent a villa with a pool in peak season - I know, I tried!
There is NO capital gains tax on your first sale in the north.
Going Places - the No1 UK travel agent - are for the first time advertising the north in 1,600 of their outlets this year. It is reasonable to expect that the north's economy will converge with the south's in terms of GDP over the next few years - so why pay 50% more in a dud market when you can pay 50% less now and realistically realise a juicy return tax free in the near future?
