The benefits of investing in property for rental purposes
If you are considering buying an investment property, Leptos Estates can offer you some useful information including all the benefits of buying houses to rent. For some, the Mediterranean Dream is to own a property of their own on the island of Cyprus, and to live permanently in a European member state. Others prefer investing in an apartment or villa that will essentially offer them excellent rental return on their investment.
Whether you are investing in property as a beginner, or you are experienced in the field and simply want to add to your collection of rental properties, the advantages of buy-to-let are endless and they continue to lure people into starting a property portfolio of their own.
Investing in a property is one of the most reliable sources of investment. As a buy-to-let investor in Cyprus, you can earn income in different ways, either through the rent paid by tenants of the property, and the other through capital growth, depending on where the property is located. Leptos Estates ensures that all our developments are in prime locations that are increasingly in demand, causing property prices and rental yields to climb.
Buying a house and renting it out is a popular lifestyle trend. In Cyprus, especially in the cosmopolitan town of Pafos and the vibrant city of Limassol, there is less chance of experiencing void periods in your letting. However, if a unit remains unoccupied, the loss of rental income during that time is somewhat insignificant compared to the long-term appreciation of the property.
Investing in an apartment is a fantastic way to reap the benefits of buy-to-let; the cost of an apartment is typically lower than that of a house, meaning that purchasers are more likely to be able to buy in bulk and build their property portfolio more effectively.
Investors can benefit from finding reliable, long-term tenants, ensuring that they will receive a steady and predictable source of income. The Cyprus property market allows investors to benefit from the advantages of the buy-to-Let market. For further information about Buy-to-Let, click here and browse through our various guides that will help you on your way to making the investment decision of a lifetime.
As a rental property owner, you will have an opportunity to secure a steady income stream, all the while building equity and letting your investment property appreciate. Leptos Estates also offers property management services, thereby allowing us to do the usual work associated with being a property owner. We will address tenant issues, arrange for maintenance and repairs, and handle all the tasks that preoccupy most property owner’s time.
Cyprus offers excellent tax benefits, ensuring your rental property investment is lucrative. Property owners with tenants can deduct numerous expenses associated with generating rental income, including home repairs, improvements, and depreciation. There is also the option to deduct mortgage interest. Furthermore, hiring someone to manage your property is also an expense that is tax deductible.
A crucial part of figuring out whether buying a property to rent out offers rewards is summarised as follows:
- Maintaining a rental property is essentially a passive source of income, meaning you can continue to work a regular job and earn rental income on top of it.
- As with other forms of real estate investing, rising values on the market will also increase the value of your rental property investment.
- Rental income is not subject to Social Security taxes
- Real estate is a relatively stable investment
- You are entitled to a number of tax deductions and benefits if you rent out your property
There are several reasons why buy-to-let is especially popular in Cyprus, and across the Mediterranean.
Cyprus remains a hugely welcoming tourist destination. Rental property investors in Cyprus can expect, above average, healthy returns in terms of gross capital. Therefore, even if you are investing in a rental property for a short period, you can expect healthy profits.
Rental Income Tax is very affordable. There is the reassurance that tax rates in Cyprus remain progressive. What’s more, expenses are deductible, in addition, from any gross you make. Capital gains rates in Cyprus are particularly attractive for investors.
From the perspective of renters and holidaymakers in Cyprus, the island remains one of the safest places to live in Southern Europe. Therefore, interest in rental properties is likely to remain healthy. Holidaymakers, not just local people, will be looking for places to stay where they can be sure the crime rate is low. Cyprus is renowned for its safety, meaning you could be overseeing bankable investments.
Many people will likely visit Cyprus purely for the sunshine and the excellent climate. At the height of July, the average ‘high’ temperature is likely to be around 31 degrees Celsius, with lows of 23. Therefore, it is not difficult to see why uptake in rental properties is likely to remain steady.
A primary reason why rental property investors head to Cyprus at all is for its progressive legal system. There are laws and statutes mainly geared towards protecting investments. However, it is worth considering that Cyprus remains a European Union member state. Therefore, any laws and statutes applicable to other members will apply here, too.
A rental property is a good investment as it is also arguably easier to attract more renter interest than ever in Southern Cyprus thanks to its flexible connectivity. Cyprus’ multiple international connections and transport links make it a fast-moving, progressive hotbed for buy-to-let property investment opportunities.
With tax reliefs and investor-friendly practices available to take advantage of across Cyprus, there may not be a better time to consider rental property investment on the island. Many people, who initially came to the island as a tourist and rented a property, end up buying real estate because they are thrilled with the island. Most foreign buyers buy property in the coastal regions of Pafos and Limassol.