Anyone rent an Apartment in the summer?

Golferjay


Joined: 24/08/2007
Posts: 4

Message Posted:
25/08/2007 02:01

Hi im new to this site so any advice on North Cyprus would be a big help!



I am thinking of buying an apartment in N Cyprus as an investment, I would like to have a holiday home and rent in out also to make some kind of income for myself.



If anyone does the same can you tell me what sort of tax I would pay on the rental income and any other charges I would have to pay?



And do you get a good success with renting out or is it pretty quiet and left empty?



Where is the best place to buy for rental?



Any help would be appreciated as I have looked around on various sites and have been put off by some of the posts.

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
25/08/2007 12:46

I too have looked on various sites and my opinion is that there is not much of a holiday rental market in the TRNC. Certainly when we have been looking at rentals for ourselves the choice has been vast and we have had no problems booking at the last minute as so much property remains available. Cheap prices too. This make you wonder when you have paid for cleaning, electricity and water usage plus the rental tax is it worth it? Check out the current and next years property rentals on the site below and I think you have your answer.



http://www.ownersdirect.co.uk

Golferjay


Joined: 24/08/2007
Posts: 4

Message Posted:
25/08/2007 13:34

Hmm!! Thanks for you reply, I checked out that site before and was quite happy to see alot of the villas half booked to fully booked in certain areas, see links:



http://www.ownersdirect.co.uk/availability.asp?property_id=21312

http://www.ownersdirect.co.uk/availability.asp?property_id=14893

http://www.ownersdirect.co.uk/availability.asp?property_id=11755



But I dont have a clue on how much tax I would need to pay on the rental income of these properties?

Also how much does all the other bits like water, electricity, cleaning and maintenance come to?



Any help would be great as im am really considering selling my place in england and buying a villa out right, so then I dont have any debts and I can maybe create some income from the rent of the property in the summer and use it in the winter for myself... All sounds perfect but im sure its not that straight forward?

Ballyboffin


Joined: 25/08/2007
Posts: 903

Message Posted:
25/08/2007 14:10

Hi Golfer, I am new to this board and this is my first posting. Rental property? my advice would be, tread carefully and do not rely on rentals to cover your expenses. Many people have tried that and unless you can afford to pay the considerable ammount it costs to have a villa here don't go near. We have a few friends who thought that it would be a good investment and that their villas would "pay for themselves" sadly wrong and they have had their houses for sale for more than a year now, meanwhile paying bills that they really cannot afford.

Golferjay


Joined: 24/08/2007
Posts: 4

Message Posted:
25/08/2007 14:22

Thanks for that! Do they have a mortgage on their property or do they own it?



I would be looking at not having a mortgage and just buying from the profits I have made from my property in the UK. Im thinking that any rental income would be a profit and would pay any bills like services and supplies.



Do you think that may work?



Jason

Ballyboffin


Joined: 25/08/2007
Posts: 903

Message Posted:
25/08/2007 14:31

Answering your question on prices Golfer.

On a villa Rental tax is 10% of income. Land tax £90-£100 per year depending on plot size. House maintenance company £700- £800 plus cleaning/ laundry etc. Pool maintenance about £60 per month. Gardener £30-£40 per month. Insurance £300-£400 a year. Electricity is very expensive, more that UK prices. Water is quite cheap ( when you get it coming in that is ) otherwise it is around £25 a tanker, which you will need about once a month for pool top up.

In an apartment you would need to remember that you would have to pay the yearly management fee as well as maintenance etc. It all adds up.

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
25/08/2007 14:33

http://www.aboutnorthcyprus.com/index.php/feature/m/tax-property-north-cyprus/



Hi Golferjay,



Try the above as it has some information on the renting of property. Have you property to rent out in the UK rather than TRNC? I am not sure there is the demand for rental property in TRNC that you are hoping for. See all the threads on falls in tourism and check rental prices. Hopefully it will improve in the future but to rely on things as they are now is risky. Most people coming over here are house owners or are looking for property for sale. My friend has a villa in Turkey and managed to rent it from May to October he was buying for investment reasons only whereas this was not my real consideration. Please be careful and explore all options.

Ballyboffin


Joined: 25/08/2007
Posts: 903

Message Posted:
25/08/2007 14:37

Jason, no, our friends do not have a mortgage on the villas, but as I said to you in my previous posting it isn't cheap to run a property here. If you are really serious about the buy to rent market it seems that East of Girne is the most popular with guests.

Golferjay


Joined: 24/08/2007
Posts: 4

Message Posted:
25/08/2007 14:47

Great! That is exactly what I needed, thank you!

Land Tax: £100

House Maintenance: £800

Pool and Garden Maintenance + water £1500



With electricity all the outgoings could add up to £3000 Or £2000 without pool,

does that sound about right?



Can I take the above amount off the profits. Do I pay 10% on the total rent or just the profits after all the above is paid?



Thank you for your help with this, you have helped me alot



Jason

Ballyboffin


Joined: 25/08/2007
Posts: 903

Message Posted:
27/08/2007 18:33

Hi Jason, forgot to add utilities, about £100 a year. You pay tax on the total rental of the property, sorry to say.

davey


Joined: 28/06/2007
Posts: 22

Message Posted:
28/08/2007 00:18

Hi Golferjay,

I bought a villa with pool and took possesion in November last year, upto a month ago my english next door neighbours took care of cleaning etc, and i have a pool maintainance company to do my pool.

It became too much for my neighbours looking after a number of propertys, after all they were supposed to have bought their place to retire too but ended up being busier than when they were working

Hence i have now just signed a 12mth contract with a new property management/letting agent, this is being run by an english guy who has worked in the hotel industry around the world in various 5 star hotels.

He is very friendly and approacable via phone or email and will always reply promptly

They offer a complete service, full property management, meet and greet/welcome pack etc etc, will show people around to get familiarised if required.

Payment of bills electricity, water etc, and will email the original bill, (saves having a float), pool and garden maintainance,arrange car hire/airport transfers, weekly property checks,(inventorys before and after letting). also advertised through their website and property magazine, as they are a seperate part of large construction company who offer viewing trips.

monthly cost for villa with pool is 99gbp, whilst apartments are 49gbp, i thought this to be quite reasonable as i currently pay 50gbp pm for pool maintainance alone.

They can be contacted through there London office or NC office,

well i guess time will tell over the next 12mths if this was worth it or not.

you have to try things out give them a chance, personally i think this decision will prove to be a worthwhile investment.



Dave

Vienna girl2


Joined: 03/09/2007
Posts: 3

Message Posted:
03/09/2007 23:06

Hi davey

We are in the process of buying in the Tatlisu area and will need someone to manage the house when we are not there. How is it going with your new property management guy?? It sounds like a good price. Can you send me the details?

Thanks

davey


Joined: 28/06/2007
Posts: 22

Message Posted:
04/09/2007 00:34

Hi Vienna Girl2.

Richard the property management guy will be going out to set everything up within the next couple of weeks, and with renting out he will also be taking photos, and giving me a price he expects to get for letting.

So its still very early days but does look very promising, and i am looking forward to what the next 12mths will bring.

A friend who has also bought on Tatlisu has gone with them for 12mths, i will forward the detailsi received on to you.

Kind Regards

Davey

sunstroker


Joined: 04/09/2007
Posts: 20

Message Posted:
04/09/2007 23:48

Davey



my wife and I are going to our new villa in esentepe at end of sept and trying to find someone to manage as we can only get out to NC 3/4 weeks a year.



Could you share details of your contact

Many thanks

Sun stoker

davey


Joined: 28/06/2007
Posts: 22

Message Posted:
05/09/2007 00:23

Hi Sun stoker,



Off course I am more than happy to share the details with you, i have forwarded them onto you via email, i do hope they will be of help, as i am in the same position as yourself regarding my time spent in N/C.



And if the information helps put your mind at ease, then it will have been worthwhile, after all we have all worked hard to be able to purchase our holiday dream homes.



Davey

kell73


Joined: 16/10/2007
Posts: 20

Message Posted:
12/09/2009 16:15

Hi Davey



Could you also email the details to me as I am looking to rent out my apartment.



Many thanks

TRNCVaughan


Joined: 27/04/2008
Posts: 4578

Message Posted:
12/09/2009 16:48

I know of a few owners who rent out their villas/appts and one of the things which can really upset your profit margin is the huge electricity bills that they sometimes get when paying guests leave the a/c running excessively, often with doors and windows open.

I can help you avoid this happening. If you want further info, please contact me on

vaughan@sunnycyprus.net