Property investing is a profession that requires skills that will ensure all your work will give you a profit over the long run.


When you invest in property you want to make sure you get more than what you put in financially. 


The best way to do that is to make sure you have all the facts. There are plenty of good areas to invest yourself in order to get a net gain. This article will give you the facts on investing property in Cyprus Island and Mallorca Island. After reading this article, you will know everything you need to decide between Cyprus and Mallorca.

Cyprus Island


Cyprus Island is beautiful island in the Eastern Mediterranean, and South of Turkey. Recently tourism in Cyprus Island is on the rise and the island intents to keep it rising. Hotels along the shores are popping up like seashells! There is even talk of building the island’s first and only integrated casino resort. Foreign direct investment into tourism properties are at a high and look like they will be increasing. In 2016, tourism generated 12% of Cyprus’ GDP, and continues to prove itself to be the country’s most resilient commercial sectors. Cyprus redesigning itself in order to attract tourists with higher spending power. Cyprus hopes to have tourism generate 30% of its GDP in 2030, by boosting visitor arrivals and tourism revenue. Currently, Cyprus attracts all types of tourism such as honeymooners, sports fan, and medical and wellness tourism. The way tourism drives the Cyprus economy makes it a sound decision for tourism property investments.


As of late, properties on Cyprus are decreasing and property truncations are increasing. Rental returns are moderate but Cyprus still looks very attractive to tenants due to gross rental yields falling in surrounding areas. The rental tax income is low to about moderate in Cyprus; so you can keep some of the profits you earn from tenants.Cyprus has double taxation with 26v countries and there are no restrictions on exchanges on current international transactions.The real estate market on Cyprus has been booming alongside the tourism section of the island. Interest rates are about 4% in Cyprus and investors are buying as much as they can currently.The cost of living in the North and South areas of Cyprus is lower than other European countries. You will save money year round for water and electricity; there are also building equipped with solar water heating systems, saving you even more money. You will also save money on locally produced items for your property investment needs, especially on cigarettes and alcohol.


Tourism isn’t the only industry booming on Cyprus island. The Aphrodite gas field offshore of Cyprus has dubbed the island a future energy hub for Europe. The gas reserves of the island over the last few years have caught the attention of Europe and the United states. There is hope for investments in this area as more gas reserves are found around the island. Cyprus plans to export some of the natural gas by 2022.


Overall, Cyprus is a good choice for long term returns because the current property market is mature. The booming tourism economy on the island ensures a constant stream of customers for your property. And as the tourism rises, so will the profits of your investment.


Mallorca Island


Mallorca Island is a wonderful island in the Western Mediterranean, and off the East coast of Spain. This island is also booming with tourism, and is one of the strongest sections of the island’s economy. There is a very large demand for rental vacation properties along the coastal cities of Mallorca. Some popular tourist areas ripe for property investments are the island’s marinas, golf areas, hotels, and beaches. Mallorca is also improving current tourist areas as well as building more tourist properties. The total investments toward tourism is around 120 million Euros from the private hotel sector of the island.Mallorca’s strict building laws and limited land availability will ensure the profit of your investment will grow. The land available for attractive properties on the coast are limited which guarantees you the power to increase the price as you see fit. Tourist who stay on Mallorca are will to pay good money for an ocean view. The price of living is relatively low compared to Spain and is an attractive quality to tourists. Vacation property is always in depend for the waves of tourism throughout the year. The prices for Mallorca has not reach pre-crisis 2008 levels, so properties are still relatively low compared to other investment properties in Europe.


However, there is a new law in Mallorca that will affect renting; the law will avoid tourist saturation, improve and regulate tourist rental in multi-family building, and ensuring housing to solve the reducing supply of rental apartments and the rising rents. This law was drafted in January 2017, and is still under revisions. Overall the outcome for this law is to ensure tourism does not overtake the island and will only really affect rental properties in residential areas. Tourist stays in houses on rustic lands will be prohibited, tourists may only stay in houses that are registered, and both single-family and multi-family constructions must be at least 10 years of age.

 


Mallorca is a good investment in that it has remained a highly profitable rental market since foreign buyers first started investing. The prices of property have begun to rise once again due to being a celebrity get away. Keep in mind that the prices of properties are still below pre-crisis levels, making these properties ripe for investing. Tourism is still flowing through the island and doesn’t seem to be slowing down.

 


Conclusion


Overall, each island has features and properties that will help make your investment pay off. They both have a steady flow of tourism that seems to be increasing. Prices on both islands seem to relatively low compared to their European counterparts cost of living. Now it is up to you to decide which island is the best for your property investment.

 


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