There’s been a bit of a buzz recently in the financial world concerning “Buy to Let” properties. If you didn’t really understand fully what this really means well the title itself reveals that you just buy a property and then let it out. It is quite a simple principal really, but you must always calculate that your monthly rent will fully cover the monthly mortgage payment.

One thing to bear in mind when venturing on a property investment like this is the total month duration times of the high and low seasons. In Northern Cyprus for example, the low season lasts just five months and the high season stretches over seven months. To put the icing on the cake, there are over 300 sunny days a year, allowing thousands of travel makers the luxury of all year round holidays in places like Northern Cyprus.

There’s nothing better than having real figures to work from so let’s go over a property deal including a sea view totaling 250.000 Euro. First you will have to make an initial down payment of 3000 Euro to hold the property. That is followed by paying a 30% total deposit which would come to 75.000 Euro, including the 3000 Euro down payment.

With the deposit out of the way we just have to deal with the 175.000 Euro balance, which we are going to finance. Have a good look at all of the different mortgage options but I would recommend a interest only mortgage, as this way your monthly payments are lower. We will take the best rate in current conditions then the resulting monthly payments work out at about 800 Euro, that being 9.600 per year.

The statistics available on rental income in Northern Cyprus show that properties can be let out for up to 10 months per year. So if we put the property we have just bought into the equation, we can expect an amazing 2600 Euro. in the high season and an awesome 1500 Euro. over the low season PER MONTH.

It’s time to find the calculator so we can see that how much rental income we can expect from a holiday home in Northern Cyprus. Let’s say that we take it as being 6 months of high season and 4 months of low season, well my calculator says 21.600. That is gross profits of course so you would just have to take off the 9.600 Euro mortgage payments and an additional 1.000 Euro in Property management. So that will leave you a net profit totaling 11.000 Euro per annum, plus a 2 month bonus holiday rent free. You can see why property investment in Northern Cyprus is the right choice.