The basic question is how long periods you intend to stay in the island. If for long periods then buy is a better option, but if only for 10-15 days a year, prefer to rent. For those who want to feel comfortable by coming back to their own “nest” and using their own “things” and decorating their property to their own style, buying is a better option (but it has its cost).

At times of an active market and value increases in property prices, buying is a better option, since the property may be looked upon as an investment of an increasing value on which you may capitalize in the future.

Similarly at times of recession, buying is also recommended, provided what you paid is a knocked down price. If not suitable price, prefer to rent.

Renting one’s villa/apartment to third parties is not a paying proposition as an income producing investment, since the net return is no more than 3%-4% p.a. So on this count renting instead of buying is better.

For business people or large families, opt for buying, since you can use the property to invite friends and business associates, who may help in your business (if you like this sort of thing).

Available property for rent for long periods is more of a rarety in Cyprus. Rental periods rarely exceed 2 years, so just when you “love” the place and you wish to stay longer, the landlord could either ask you to leave, because he wants the property himself, or ask for a rental increase, which you may not afford. As such renting in Cyprus must be looked upon always as a “temporary” stay in a particular property

If you are renting you will never feel the property as your home. You will not carry out any alterations/additions to someone else’s property and you will have always the psychological feeling of the property not being “your home”.

Depending on one’s finances weigh up the mortgage repayment vis-à-vis the rental payment. If one is to ignore the down payment (+-30% our contribution) and the mortgage repayment equal to more or less the rental payments you might consider that buying is a better option. Bear in mind that for a 2 bedroom bungalow with a private pool and in sought after holiday home location, the rental required is over €50/day say for 10 days €500/year. If you wish to stay, say 4 months/year, the equivalent will be (-20% discount) €4.800 p.a. If you are to buy the property at a price of €210.000 and furniture and garden say total cost €250.000 (including legal, mortgage, other fees etc and you pay 30% (own contribution) your mortgage repayment will be around €19.000/p.a. for 15 years. On this you must add the buildings maintenance cost, say, another €2.000 p.a., a total annual cost of €21.000. So in this case and provided you have similar parameters, renting is a better option - but, then, you might not find the same/similar unit within the same/similar location and for the same period every year, but you have the flexibility to move around from country to country and from one location to another.

Not an easy decision to make when you are in two minds and especially when you are reaching your financial limits. We have a say in Cyprus “……. your car, your wife and your home do not look at them as being a paying financial proposition, since it does not pay ….”.