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Rental Income Properties in Larnaca - Cyprus
Each property type on the resort will be part of a rental pool and a proportion of income achieved will be shared amongst all
owners of that type of property.
Investors will be liable for modest running costs which will include property management and community fees, buildings and contents insurance.
Utility and local authority bills will be paid by the resort.
Less than 50% occupancy will cover mortgage repayments and all owners costs, and contribute to the repayment of the developers funding.
Rental income on the financial cash flow sheets has been calculated taking into account the following:
30% occupancy for year 1
50% occupancy for year 2
60% occupancy for years 3-10
Room rates used are extremely competitive in relation to today’s average price of luxury hotels in the area (comparables can be provided)
and are based on the following criteria:
Per unit per week
Room
| Room (2 people sharing) |
Low season - €500 |
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High season - €1,000 |
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| Suite (2 people sharing) |
Low season - €1,000 |
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High season - €2,000 |
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| One Bedroom Apartment |
Low season - €700 |
| (4 people sharing) |
High season - €1,400 |
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| Two Bedroom Apartment |
Low season - €1,200 |
| (6 people sharing) |
High season - €2,400 |
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5% increase in room rates per annum has been factored in.
Example cashflow projection
Based on purchase of a hotel room with prices converted to sterling at a rate of 1.25:
| Purchase price |
€135,000 |
£108,000 |
| Initial investment |
€19,898 |
£16,000 * |
| Developer loan |
€13,500 |
£10,800 ** |
* Covers initial 10% deposit plus all usual costs e.g. stamp duty, legal fees etc.
** Repaid out of surplus rental income
| Capital growth after 10 years |
€230,000 |
£184,000 * |
* Based on 10% for 3 years, 7.5% for 3 years and 5% for 4 years. Growth for last 2 years has been 10-15% in the Larnaca region, with this year
set to be the same
| Rental income |
€57,500 |
£46,000 * |
* Based on income after developer loan is repaid
| Total profit at end of year 10 |
€287,500 |
£230,000 |
| (Capital growth + rental income) |
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1,437% return on investment
Enquire Now For Further Information
on this Opportunity!
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