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The key factors to be considered when making a property investment decision can be summarised simply, as:
- Capital Growth - both historic and projected
- Risk of the Investment
- Ease of conducting business in the country
- Financial Products available to support gearing the investment
Capital Growth
Numerous economic factors have fuelled high levels of growth in the Cyprus property market over the last few years, including the entry into the European Union, the level of investment in the infrastructure and the growing awareness and popularity of Cyprus as an all year round holiday destination. This has resulted in Cyprus becoming one of the fastest growing property investments markets in Europe, with annual property price increases of around 15-20%.
The ongoing investment in infrastructure, the growing popularity of Cyprus as a holiday destination, entry into the Euro in January 2008 and the relatively low prices compared with other popular European destinations such as Spain, France, Portugal, and other Mediterranean Islands support the expected and continued increase in property prices in Cyprus for the foreseeable future.
Risk of the investment
Cyprus is one of the most secure places to invest, which is a major factor when making any investment decision. Here are some of the key points about Cyprus that we feel make it a good investment opportunity:
- The Cyprus legal system is based on the English legal system, so if you are using an independent lawyer, the investment is extremely secure. The lawyers speak very good English and are typically trained in the UK
- Cyprus is very safe and boasts the lowest crime rate in Europe. Even today the locals do not think of locking their homes and cars
- The Financial economy in Cyprus is extremely strong. It is planning to join the Euro in January 2008 and therefore has to meet very stringent financial targets which will make it even stronger. Cyprus is on track to meet these targets
Ease of Conducting Business
- 90% of the population speak English making it very easy to do business, build trust, and avoid misunderstandings
- The Cyprus banking system is based on the English banking system
- Good mortgage and loan products are readily available, in the most competitive currencies and at good rates
- Cyprus has a dual taxation treaty with the UK and it is one of the most tax efficient countries in the world
Leveraging the Investment
The finance options available and hence the level of gearing that you can make on your investment is one of the key factors that will determine the return on your investment. This should have an even greater impact than the increase in property prices, as it acts as a a multiplier to the property market growth rates.
Readily available low contribution loans are fundamental in gearing your investment, and Cyprus now has a wide range of loans and mortgage products available making it an excellent location for gearing your investment.
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