Buying Investment Property Overseas? Check Out North Cyprus
The current reunification talks that are taking place in North Cyprus should be the focus of attention for anyone thinking about buying investment property abroad at the moment. Property in Cyprus is, in terms of values, divided into two detached markets; a division that follows exactly the Green Line border that runs between the North and the Republic of Cyprus. In the Republic of Cyprus properties cost a comparable amount to other Mediterranean destinations such as Spain - typically around £210,00 to £225,000 for a three bedroom property, close to the sea and with no swimming pool.
In North Cyprus a comparable property would be expected to go for £100,000.
Unlike Republic of Cyprus properties, where values have stagnated since the boom of a couple of years ago, property in North Cyprus is appreciating in value, making it an exceptional - and in the currently global financial market - quite unique location for buying investment property abroad.
Property in North Cyprus has been rising in value since 2003, when the property market opened up to overseas investment. In fact, in the two years following the opening up of the market to overseas investment property prices rose by 20% - bringing fantastic returns for those property investors sharp-eyed enough to make their move early. Now, with the pro-reunification Mehmet Ali Talat and his counterpart, the similarly inclined Demetris Christofias, both sitting down to talk through the exactitudes of a reunified Cyprus - a reunification that looks as though it will take the form of two confederated states with a single internationally recognised Cyprus.
The result for Cyprus properties will be a consolidation of prices between property in North Cyprus and the rest of the island - that is, another boom for the market.
The optimism in the current round of negotiations has been expressed by all levels of the international community, from diplomats at both the UN and EU - who welcomed Christofias's election in February 2008 - to NGO's and investors and property developers.
The mood was perhaps best summed up in the title of a report produced by the International Crises Group - one of the leading NGO's in the world - which read Reunifying Cyprus: The Best Chance Yet. The momentum in diplomatic efforts has led the north of the island to become the premier destination for buying investment property abroad, and it is now attracting both individuals looking to make a single property investment and also larger scale developers.
Unlike other, more mature property markets, investing in property in North Cyprus does not require a daunting initial investment. And unlike other investment properties abroad property in North Cyprus is purchased in pound Sterling, meaning that the investor does not shed money in the unflattering exchange rate between the pound and the euro, as would be the case with purchasing property in more established overseas investment locations popular with UK holiday makers and property investors. With reunification property values are expected to shoot up - according to some commentators by as much as 100%.
This might seem optimistic, but remember well before reunification was anywhere near tabled, in 2003, property values shot up 20% in 18 months. With fantastic potential as a continuing developing tourist destination and in property appreciation rates, North Cyprus offers property investors an unbeatable overseas investment opportunity, for those shrewd enough to take advantage.