Cyprus's real estate and property market is booming dramatically due to the continuous work of construction companies who invest large amounts of funds towards infrastructure development. With the aid of the European Union as well as foreign investments property prices have gone up dramatically. Cyprus property market has being said to be one of the fastest growing property markets in Europe. As reported by many agencies sales investment property is indeed one the of the most popular options exercised by local and foreign investors. Due to it's radical growth, the tourism industry has made very feasible the process of 'buy to rent'. The way it usually works is very similar to the US time share market, people spend their holidays in their apartment in Cyprus, once that period has passed they go back to their home country and rent it out once again. As you can imagine, real estate companies are the ones organizing all of these special arrangements. One of the safest and friendliest destinations to buy a home is Cyprus, this country's legal system is organized in such a way that resembles UK's system which makes it easy for foreign buyers to obtain investment properties. Due to these advantages Cyprus has become an exclusive location for working, retiring, raising a family or investing. According to this country's regulations a value added tax (VAT) on property related transactions is to become enforceable in 2008 which will unavoidably increase real estate market across the island. At the moment there are numerous options ranging from apartments to villas and luxury houses to choose from. Banks and Financial institutions have made available easy loans to finance property purchase in Cyprus to foreigners in both foreign currency and Cyprus pounds. Loans available cover up to 70% of the property value and can be negotiated to 80%-85%, if the construction is new. The repayment period ranges from 15 to 20 years, meaning you wont be caught in endless mortgage payments. A typical housing property in Cyprus gives a yield of 8%, which in net after deduction of all charges comes out to be 5% and is sufficient to cover mortgage. As expected, European Union membership has made property ownership in Cyprus easy and rental returns are going strong with better prospects in future. Cyprus property can be acquired after completing and submitting a "permission to purchase" application with the Council of Ministers. Every foreign investor needs to go through this process, in order to purchase property in Cyprus which is not not a very restrictive method. An investor can purchase up to 4000 square meters of land plus an apartment or house which covers the needs of most property investors.
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