Financing the Deal
A major consideration for any overseas property investor is the ability to raise money to finance the purchase. Cyprus property prices were certainly affected for a long time by the fact that long term mortgages for non-residents were not readily available. Just over eighteen months ago this all changed. Membership of the EU has made a big difference to Cyprus and there is no doubt that this affected the attitude of the banks.
Since 2005 raising a mortgage on Cyprus property has been both cheap, and easy, as the main banks slug it out for market share. At the time of writing this report (October 2006) the lending rate is 4.25 per cent and mortgage rates are extremely competitive.
The banks of Cyprus are equally keen to protect investors and will not permit foolhardy ventures based on high gearing. The Cypriots insist that investors put in a minimum of 20 per cent of the valuation price in order to maintain stability in the market place.