Buying Property in Paphos, Cyprus

As you lie back in the glorious Cyprus sunshine beside the swimming pool at your luxury Paphos rental villa, it's easy to feel tempted to buy one for yourself. During the summer months, there are plenty of estate agents in Paphos more than willing to show your lovely Cyprus properties and villas in the sun - and then present you with the paperwork, just ready to sign...

Buying a Villa or Property in Cyprus: Is it for you?

Before you even get near an estate agent, think about WHY you might want a Cyprus property.
• Are you looking for a holiday home just for yourself and your family?
• Are you thinking of renting out your holiday villa in Paphos to others?
• Do you want to live and work in Paphos?
• Do you want to retire to western Cyprus?
• Did it become a great idea by the end of your second bottle of local wine at lunch?
(If you chose the last reason, wait until the morning and think again!)

Purchasing a Family Holiday Villa in Paphos

The great advantage of owning your own Paphos villa is that you can come and holiday in the Cyprus sunshine whenever you like - or can you? How much annual holiday have you got? Are you tied to school holidays or other times? How many weeks away from the UK can you manage?

The simple way to check if investing in Cyprus property for holidays is right for you, is to work out how much the property costs to own and run, against the cost of the equivalent holiday renting your villa from Paphos Villas.

First, add up how much your current villa holiday is costing you, including your flights, villa rental costs including any extras such as air conditioning, Cyprus car rental, airport parking costs back in the UK, travel insurance, dog kennels fees, etc.

Now, total up the costs of buying a property in Cyprus, including the purchase cost of the villa (or your top budget price), mortgage arrangement fees and interest on the repayments, purchase taxes, estate agent fees, solicitors' fees, maintenance and management charges (for villas on managed estates), annual utility costs (electricity, water, etc), annual insurance costs for both yourself and the property, furnishing the villa if required, and (say) four return flights a year to Cyprus. Now divide that total figure by the cost of your villa holiday with Paphos Villas his year, and the result is the number of years you will need to holiday in Cyprus to break even.

For example, if you bought a three bed villa in the Coral Bay area and added in all the costs (assuming a nominal mortgage), the total may be around Euro 230,000. Say that your holiday in your Paphos rental villa this year has cost Euro 2300 in total, you would need to holiday 4 times a year for 100 years to break even!

See why renting a holiday villa from Paphos Vilas is such good value?

Buying a Rental Property in Paphos, Cyprus

One way to offset the cost of buying your Paphos holiday villa is to rent it out when you are not using it. This means the majority of your rentals will be during the main tourist season, from May to October. The problem here is that these are precisely the months you might wish to holiday yourself, and when the family want to use the villas too, so any weeks you use yourselves during this period will effectively reduce your rental income. In addition, you will be responsible for your Cyprus villa's upkeep, the utility bills, government taxes, insurance, overall maintenance and security, all year round.

Many Cyprus rental property owners employ a management agency who maintain the property and deal with any problems, such as leaks or breakdowns. Owners also often sign up with rental websites to promote their villa for rent in Paphos. However, your lovely new villa is then in competition with a vast range of other villas for rent too. (Not all holiday rental websites choose their villas as carefully as we do here at Paphos Villas!) Furthermore, there is no guarantee that you can rent the villa all season long, let alone all year round, however lovely it is.

So, again, it might be better value for you to rent your perfect holiday villa from Paphos Villas rather than buy!