Find out how long it takes for a property you’ve invested in to pay off with rise in property value and rental income in North Cyprus. In this article, you will find answers to questions like “What are property depreciation periods like in North Cyprus?” and “How long are property payback periods in Cyprus?”.
To get a clear answer to the question “I wonder if this is the right investment?” before buying property, this is the one thing you should always calculate: Depreciation time. For those planning on Investing in Cyprus, one of the most important things to consider is property payback period. So, how long is the property payback period in North Cyprus? Another way of putting it would be to ask what the depreciation period of property is in Cyprus. We are going to help make sense of it all by giving you clear examples and calculations.
What is Property Depreciation Time?
Property Depreciation Period is calculated based on the property rental value and the increase of the property’s value over time resulting in the average time it will take for the property to pay off. One of the biggest mistakes is to only take into consideration the rental income when calculating. Considering only the rental income to calculate depreciation time would give inaccurate results. This is why it is important to take into consideration the increase in value overtime.
To get a clear answer to the question “I wonder if this is the right investment?” before buying property, this is the one thing you should always calculate: Depreciation time. For those planning on Investing in Cyprus, one of the most important things to consider is the Property Payback Period. So, how long is the property payback period in North Cyprus? Another way of putting it would be to ask what the depreciation period of property is in Cyprus. We are going to shine a light on these questions through examples and calculations.
How Long is the Property Payback Period in Cyprus?
Today, while this duration varies between 25-30 years in megacities like London or Istanbul where there is a lively and high-valued property market, in North Cyprus this duration is between 8-10 years. Since this is an investment that pays off in a short time Flats for Sale in North Cyprus offer great advantages. If we were to give you some examples by city, due to restrictions of development rights in Kyrenia plot prices are increasing. This is why rental depreciation time in Kyrenia varies between 12-16 years. However, in vibrant cities such as Famagusta and Nicosia, where there is an increasing demand for new living quarters, this period is around 10-12 years. As mentioned earlier, due to the gradual increase of property values this turns out to be around 8-10 years.
How do you calculate the Property Payback Period?
Let’s assume that a Flat for Sale in Cyprus valued at 45,000 GBP has a rental income value of 350 GBP. If we calculate 45,000 GBP/350 GBP = 128.571 months is the amount of time it would take for your investment to pay off. If we convert this number into years, which is 128.571/12 = 10.7 years, this would only give us the rental depreciation period. In time, the rise in property prices combined with the rental income value means that the actual depreciation period is shorter than 10.7 years. Property payback periods in North Cyprus are around 10-12 years. However, when we take into consideration the rise in property prices over time, this duration can reduce to as low as 7 years. If you want to make a successful investment, choose areas where property prices are low and rental income is high. In North Cyprus almost every region falls under this category making any property investment an excellent investment.