The price you have been quoted would buy a 2 bedroomed townhouse .
Also at a price of £138k you would need to put around 55k deposit as cypriot banks now want 40% deposit.
Also as you have already been told there is a glut of rental properties and you will find it very difficult to cover even the cost of a mortage of 80k.
Think very carefully about what you are doing and do not leap in if you have any doubts at all.
My husband and I sell property in the Paphos area and we make sure before we show anybody any properties that they are in a financial position to buy.
Many agents are less scrupulous and will try to sell you something with no thought as to whether you are in a position to meet payments as all they care about is their commission. They will wash their hands of you once you have paid your deposit and they receive their commission.