Investors run to the Hills for low deposits and mortgage rates.

A new development in Cyprus is proving a hit with property investors due to low deposits and low fixed rate mortgages.The St. George Hills development near Paphos in Cyprus will consist of studios, apartments and villas with private pool. Prices start from £75,000 for a studio up to just under £300,000 for a 3 bedroom villa with sea views.The deposit is just 15% on signing the purchase contract with nothing to pay until completion in 2009/10 – when a further 5% is required. An 80% mortgage is available for the balance at rates of around 3%. Rental yields are expected to be around 5% and capital growth in the region has been 18-20% over the last few years. Next year will also see the introduction of a 15% land tax, this rise in the cost of land in Cyprus is expected to be passed on to buyers by the developers in future years.