Cyprus-Forum.com

[dplees9]

Hi,

I have bought a 1 bedroom apartment in a good development in tremithousa paphos and was wondering how popular this would be with the long term rental market when it is completed in 2011? I have a mortgage of 440 a month and am desperate to know if this will almost cover my costs?

many thanks

[CBBB]

Very doubtful. If you go go for holiday lettings you will be able to charge more per week, but you will probably have so many unsold periods that you would be better of renting it long term at a lower amount.

For long term you might get €400 per month if you are lucky.

[dplees9]

Thanks for your response. I am starting to feel less worried about my investment. If I can break even for a few years I hope to be able to sell and break even in about 2014 when the economy picks up.
Luckily the apartment wont be ready for another 24 months

[Z4]

Hope your right dplees9. 2014 is a long way off and things will be alot different then to what they are now. (I hope!)

[dplees9]

I dont think things will get much worse, if they do no one will have a job.
We just need the euro to crash against the pound and then i'm sure Cyprus will see interest in its property market return.
If not I will be stuck paying another mortgage on a one bed flat with 7 swimming pools and a chapel! Not the cheeriest of thoughts.

[CBBB]

I dont think things will get much worse, if they do no one will have a job.
We just need the euro to crash against the pound and then i'm sure Cyprus will see interest in its property market return.
If not I will be stuck paying another mortgage on a one bed flat with 7 swimming pools and a chapel! Not the cheeriest of thoughts.

Only if the devloper doesn't go bust, which is a distinct possibilty at the moment. If they can't make new sales, they will have no money coming in to complete their currently underway projects.

[Svetlana]

At current rates, I would suggest €350 was the most you would achieve; rental rates are in steep decline in the Pafos area. You will also need to budget for: service charges, insurance and Municipality charges, of course.

But things MIGHT look up

Five years ago, my rental property was achieving €500 pm; it certainly does not now.

Lana

[dplees9]

Service charges are about 2k a year in the development that I have bought in. Would the person renting my apartment not pick up this bill? That is how it works in the UK

Many thanks

[CBBB]

If that is what you agree with them, but that sounds a bit steep. If as Lana says you are more likely to get around €350 per month, another €170 starts making it look expensive.

[Svetlana]

Hi dplees9

Common practice is that the owner pays for the Service charges, the person renting pays for electricity and water.

A Service charge of €2000 pa for a one bedroom apartment is a disgrace; these things do make me angry. Let us assume there are, say, 20 units on the development; for €40,000 a year all they will do is clean the pool once a week, provide common area lighting and cleaning. I will do it for half that price

Lana