Cyprus Property – Should You Rent Or Buy?
It may seem absurd to suggest that there could be clear advantages to renting property in Cyprus over buying, but that may be the case in certain circumstances. The writer has always been quick to expound on the benefits of owning property in Cyprus, especially in relation to holiday villas or apartments in Cyprus. However, a growing argument in favor of long-term rentals in Cyprus, particularly by retired couples and even some families as well. The good news for them is that there is no shortage of all kinds of properties available for rent throughout the island, including the main resorts. However, the question most readers will be asking is whether there is any advantage to paying rent over buying a property in Cyprus with a conventional mortgage.
A growing number of retired couples are selling their homes and moving to Cyprus to take advantage of the island’s mild climate and more relaxed lifestyle. These upwardly mobile retirees do not want to be tied down by the burden of home ownership in Cyprus and prefer to rent. They have calculated that the interest on the money from the sale of their UK properties is enough to cover the rental of a property in Cyprus. They then have the freedom to move from one place to another with ease, without any of the hassles involved in buying and selling property. Also, should they have to return to the UK for whatever reason, they would still have the benefit of their cash assets in the bank.
Other older couples have chosen the Cyprus property rental option to avoid things like inheritance tax and the possibility of having their property assets liquidated by the UK government. This is often the case in case they need to go to nursing or care homes later in life. Either giving your property assets to your children or selling them outright puts them out of reach of the Treasury. The other advantage seen in such an arrangement is the pleasure of seeing their children benefit from their inheritance while the parents are still alive. Since Cyprus and the UK have reciprocal tax and pension agreements, these couples can even pay their pensions directly into a Cyprus bank account.
In the case of holiday rental properties in Cyprus, it does not make any sense to rent such a house or villa because the rent would be based on the holiday market. The cost of renting these properties on a weekly basis would be astronomical and totally unfeasible for anyone considering a long term lease. For example, people who are moving to Cyprus or who want to spend the whole winter there. Many holiday property owners in Cyprus are willing to negotiate realistic rates for long-term rentals, especially during the winter season. The price difference between vacation rentals and long-term property rentals is huge, to put it mildly. Long-term rental in Cyprus is always a cheaper option because the market is self-regulated by the average salary which, in turn, determines the actual affordability of rentals.
The ironic twist is that many Cyprus properties earning long-term rentals are often on the same street as identical homes earning four times the amount of vacation rentals. So if you fancy living in a luxury apartment in Cyprus or even a villa with your own private pool, a long-term rental might be just what you need. With the Cyprus real estate boom continuing unabated, there is a wide range of properties available for long-term rental and there is no shortage of willing tenants either. A good proportion of these Cyprus properties will be owned by former land owners because that is how developers pay them, with houses instead of cash. So if you like the idea of a house in the sun but don’t want to buy, perhaps you should consider renting a property in Cyprus.