An Expat Guide To Financing Property Purchases In Cyprus
In spite of being a foreign citizen, you should not face any trouble if you decide to apply for a mortgage with a Cypriot bank or financial institution. The interest rate as well as the terms and conditions are quite competitive compared to other countries. In 2014, the Central Bank of Cyprus dropped the rates of interest on loans to stimulate lending, consequently increasing the demand for residential property.
The banks on this island grant a loan-to-value (LTV) ratio of 70:30 on mortgages. As a buyer from overseas, you also have the option of taking a loan in foreign currency, for a maximum period of 15 years. However, most potential investors prefer to make a purchase when they have the money, or by obtaining a loan in their home country.
To summarize, property prices in Cyprus are definitely on the rise but it still remains one of the better locations for investors from overseas. Finding reasonable property is possible, though not as easy as it used to be a few years ago. It is imperative that you look around, or preferably engage an experienced local to help you with your search, negotiate if necessary and guide you through the entire procedure.
You should also bear in mind that rentals are still not very high on the island and it may be a while before you see the returns you were expecting.