Mclaren Investment Property

Property Option

2 Bedroom Apt – King Alexander – Peyia, Cyprus
Price = £147,000CYP = £171,000GBP (0.86/£1)

Deposit 20% = £34,200GBP – Due on Signing of Contracts

Rental Income

Average rental from all 3 seasons = £500/week

Mortgage Information

Total Loan Required - £136,800GBP
Monthly Repayments = £136.8 x £4 = £547/month
Total Repayments over 5 years = £547 x 36 months = £19,700GBP

Costs Per Annum

Mortgage Repayments £547 x 12months = £6,565
Homes & Contents Insurance = £200
Community/Maintenance Fees = £500
Water Rates = £75
Council Tax = £60 (depending on area)
Electricity = £175

Total Costs per Annum = £7,575 + JMS fees of 30% per average rental week if you choose to use them.

Total Costs to Investor per Annum

This graph illustrates that for the investor to break even on ALL costs of the property, it will need to be rented out for 21 weeks of the year.

During a rental period of 15 weeks, the investor will make £7,500 per annum. This means to cover everything the investor will only need to pay £193/month to gain huge profits at the end of the investment model.

Profit

If the client sells the property around 5 years:

- £425,000    -    Estimated Value                    
- £171,000    -    Original Property Price         
- £19,700      -    Mortgage Repayments        
- £10,455      -    Other Costs (at 15weeks)
- £1,500        -    Lawyer Fees
- £244           -    Stamp Duty
- £0.00          -    Air Con + Furniture (included in price)
- £7,295        -    Transfer of Title Deeds
+£24,750      -    Rental (at 15weeks)
Gross Profit         = £239,556

Capital Gains to pay           = £46,200 in Cyprus

Net Profit = £193,356 in 5 years from £34,200
R.O.I = 565%

• Capital Growth figure used is: Cyprus – 20% per annum
• 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.
• 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.