2 Bedroom Apt – Price = €180,000

Deposit 20% = €36,000 – Due on Signing of Contracts

Rental Income

Average rental from all 3 seasons = €540/week

Mortgage Information

Total Loan Required = €144,000

Monthly Repayments = €144 x 4 = €576/month

Total Repayments over 5 years = €576 x 36 months = €20,736

Costs Per Annum

Mortgage Repayments €576 x 12months = €6,912

Homes & Contents Insurance = €215

Community/Maintenance Fees = €600

Water Rates = €80

Council Tax = €70 (depending on area)

Electricity = €235

Total Costs per Annum = €8,112+ JMS fees of 30% per average rental week if you choose to use them.

The 1^st year of ownership is mostly covered with the guaranteed rental income. Although this graph illustrates that for the investor to break even on ALL costs of the property after the 1^st year, it will need to be rented out for 19 weeks of the year.

During a rental period of 15 weeks, the investor will make €9,000 per annum. This means to cover everything the investor will only need to pay €150/month to gain huge profits at the end of the investment model.

Profit

If the client sells the property around 5 years:

Estimated Value = €400,000

Deposits                              - €36,000
                Bank Loan                           - €144,000
                Mortgage Repayments        - €20,736
                Other Costs                         - €11,700
                Lawyer Fees                       - €2,025
                Stamp Duty                           - €260
                Air Con & Furniture              - €10,800
                Transfer of Title Deeds         - €7,975
                Rental                                   + €21,600 (at 4% per annum)

       Gross Profit                    = €188,104

Capital Gains to pay = €36,000 in Cyprus, with 2 names on contract.

Net Profit = €152,104 in 5 years from €36,000

R.O.I = 423%

• Capital Growth figure used is: Cyprus – 20% per annum for 1^st 2 years, & 15% per annum afterwards.

• Mortgage rate used in this model: Cyprus - £4/£1000. Provided by a specialist independent broker.

• Mortgage is over 30 years (subject to age and financial status)

• Mortgage is only interest only for first 5 years. Investors will sell before this time period ends.

• Currency conversion correct at time of going to print.

• Build time to completion is usually 2 years.

• Please note actual amount of rental income could be more or less than this estimated figure.

• If gains are brought back into the UK, the investor will be taxed on the tax free gains made in Cyprus.

• Tax paid on the gains made through the sale of the property can be up to 40% depending on income.

• The above calculations should be viewed as guidelines only.