Where is the best place to invest in property overseas?
At this point in my career, I’m confident I could go into pretty much any overseas real estate market and find a good deal. It’s just a question of how much time, research, and exploration I want to put in.
There are, however, markets I know better than others from personal experience, and markets that I know are proven winners…
Northern Cyprus is one of them.
It’s found in Cyprus, an island country in the Eastern Mediterranean Sea with a rich history spanning more than 10,000 years… making it one of the oldest civilizations in the region. You can find a myriad of museums, historical sites, monuments, and galleries here.
Because of its unique geographical position—at the crossroads of three continents—the country is a multicultural, multilingual, and multireligious place.
My area of interest, with low capital entry points and double-digit net rental yield potential, is the northern part of the island.
Here, you get all the perks of a Mediterranean lifestyle but at a much more attractive price. Northern Cyprus has all the right ingredients for a dream retirement and fantastic investment opportunities.
It’s arguably the most beautiful area of the island, boasting incredible castles, colonial villages, and miles of sandy beaches.
As well as attracting sun worshippers, it has a strong casino industry (hence its reputation as the “Las Vegas of the Mediterranean”) and a burgeoning medical tourism sector. All of this means an increase in demand for tourist accommodation.
This northern area of Cyprus is a strong contender for a retirement destination, a second home, and property investment.
Northern Cyprus is beautiful and underrated, with a favorable climate, affordable property that gives you high ROIs, a low cost of living, and a standard of living that is up to par with what you would get back home.
What else puts it among my most-favored markets right now?
The Turkish lira is the currency of Northern Cyprus, which is good for you if you are earning income in U.S. dollars. It makes the cost of living in Northern Cyprus extremely affordable.
For the property investor, fluctuations in the local currency do not affect their investment. The value of property is denominated in British pounds.
In Northern Cyprus, foreign individuals can purchase one property: an apartment or land up to 1,338 square meters (14,400 square feet).
Foreign nationals and companies must request permission to acquire property here. You will need a valid passport and a clean criminal background record from your country of citizenship.
This step can take up to a year to complete, but it is mostly a formality as you can go ahead with the purchase and even live in your new property while the Permission to Purchase is being processed. Your local lawyer can help you with this application and follow it up until completion.
Purchasing a property in the country with a government-registered Contract of Sale makes you eligible for residency as long as you have a clean background check. The residency process in Northern Cyprus is straightforward and painless.
Northern Cyprus has been growing for the past 20 years. It is a developing area with many rising opportunities for growth because of its location, relatively small population, and rich land availability.
All of this makes it great for investment with low prices and high rates of return in the long run.
It has excellent universities, and, as a result, education is one of its most profitable and rapidly growing sectors. More than 100,000 foreign students live on the island, providing guaranteed rental income.
Progress is happening right now. Because of the sudden surge of interest, infrastructure has already greatly improved, especially in road and air access.
The property market is booming, which means prices will continue to rise in the near term.
But because this is still a relatively new place of interest, property is still affordable—a fraction of the price you could get elsewhere in the Mediterranean or even in the southern part of Cyprus.
And with the tourism industry attracting more than 2 million visitors each year, about five times the local population, the short-term rental industry is strong.
Oceanfront and beach properties benefit from capital growth the most, with massive capital appreciation in the last decade. Foreign investment has been the key to this strong and rapid growth.
Within a year, apartments that sold for $50,000 at Sickle Long Beach were worth about $65,000. Since 2021, those apartments have appreciated by over 116%, and prices continue to go up.
The best time to get in was yesterday. The next best time is right now.
My contacts on the ground have filled me in about the next big opportunity in Northern Cyprus… the west coast—the last stretched of undeveloped coast where property values are expected to more than double over the next few years.
I never invest for appreciation alone, so I’m happy to say that the properties here all have the option of becoming completely turn-key cash flow assets… for projected annual returns of 10% net of management costs.
We’re looking at easy payment terms, automatic rental profits, and serious appreciation upside.
I haven’t seen an opportunity like this in a long time…
Stay diversified,
Lief Simon
Editor, Overseas Property Alert