The deposit, not the interest rate: what the Mountis interview means for buyers and investors in Cyprus

On 11 October, MoneyMatters published an extended interview with Dr George Mountis, Group Managing Partner of Delfi Partners & Co. Two follow-up pieces appeared the same day — one on MoneyMatters, one on Strategist.cy — each picking out a single thread. Together they cover three questions we hear every week at Delfi Properties Cyprus: Why can’t I get on the ladder? Is this flat a good investment? And what would actually help?

This is our reading of the interview from the buyer’s, investor’s and seller’s side.

1. The barrier is the money before the mortgage

«Το μεγαλύτερο εμπόδιο είναι η προκαταβολή, όχι το επιτόκιο» — the biggest obstacle is the down payment, not the interest rate.

The example in the interview is a €250,000 apartment. Before a bank lends a cent, the buyer needs roughly €50,000 to €75,000 of their own money — deposit, taxes and fees combined. For many households that is years of saving, and it is the stage where most first-time buyers drop out. Rates have moved; the deposit has not.

What this means for buyers. Work backwards from the cash you have, not from the monthly repayment you can afford. A buyer with €40,000 is not shopping for a €250,000 flat — they are shopping for the property whose total upfront cost fits €40,000, and in the current market that often means a different district, a different building age, or a resale rather than a new build. We help clients size this before they fall in love with the wrong property.

What this means for sellers. The pool of buyers for a given price is defined by who can fund the upfront amount, not by who could service the loan. Pricing that ignores this sits on the market.

2. A 5.5% gross yield is a ~3% net yield

The second article runs the numbers on a €220,000 apartment renting at €1,000 a month. Twelve months of rent is €12,000 — about 5.5% gross. After void periods, maintenance, management and taxes, the interview puts the result at around 3% net. And that is before mortgage payments.

The interview adds two tests. First, net yield should sit 1 to 1.5 percentage points above the cost of borrowing — otherwise the bank earns more from the property than the owner does. Second, the investment should still work if rent falls and the rate rises at the same time.

Then the line that is worth printing out: «Αν η επένδυση στηρίζεται μόνο στην υπεραξία, είναι κερδοσκοπία» — if the investment relies only on appreciation, it is speculation.

What this means for investors. Ask for the net number, every time. A listing that quotes gross yield is quoting a figure the owner will never receive. If the net yield minus your financing cost is not positive, the property has to rise in value just to break even — and that is a bet on the market, not an investment in a building. We run this calculation for every buy-to-let we recommend, with the client’s actual financing terms, not an assumed cash purchase.

3. Support should follow supply, not just demand

The interview is careful about policy. Broad buyer subsidies, it argues, are often absorbed by price rises: more money chasing the same homes. The proposal instead is a state guarantee covering part of the deposit, for first homes only and up to a price cap — removing the barrier in point 1 without handing cash to the market — combined with measures tied to new supply, such as an additional building coefficient.

Alongside that: fully digital licensing and binding deadlines for title deeds, with a stated ambition to halve the time for permits and titles within three years. For anyone who has waited on a title in Cyprus, the relevance is obvious — and for lenders, a property without a title is weaker collateral.

What this means now. None of this is law. But the direction — targeted help on the deposit, faster supply, cleaner titles — tells you which properties are future-proof: those with clean, issued titles and realistic rental economics. Properties that only make sense on the assumption of continued price growth are the ones most exposed if policy or demand shifts.

The short version

• Budget from your available cash, not the monthly payment.
• Only net yield counts, and it must beat your financing cost with room to spare.
• Appreciation is the bonus, never the thesis.
• Clean titles are becoming a market advantage, not an administrative detail.

If you want these three tests applied to a specific property — yours, or one you are looking at — talk to us. We will give you the net number.

Full interview: MoneyMatters (Greek). Follow-up articles: MoneyMatters — «Ενοίκιο €1.000, καθαρή απόδοση κοντά στο 3%»; Strategist.cy — «Πρώτη κατοικία: Πρόταση Μούντη για κρατική εγγύηση στην προκαταβολή».

Figures are illustrative examples from the interview, not valuations. General information, not financial advice.