If you’re thinking of an overseas property investment, buying property in Turkey is an attractive option. In recent years Turkey has become a firm favourite with British holiday makers as there are direct flights between the two countries. The beaches are sandy, and both the weather and the Turkish people are warm and welcoming. Turkish food is renown throughout the world, such as kebabs and yogurt. Yogurt accompanies the majority of Turkish meat dishes and in fact the English word for yogurt is derived from the Turkish word yogurt.
With the increase in the number of tourists coming to the city, there has also been a growth in the number of resorts and lodges for the tourists. Property developers are buying properties across the country at incredibly low prices and renovating them into high standard guest houses, tourist resorts and lodges. As a result of all the activities there has been an increase in the overall capital input of the country. turkish real estate
The country of Turkey is located in the south east of Europe and straddles Europe and Asia with a vast and extensive coast line, especially in the south western corner of the country. Popular areas with property investors are Istanbul, the Aegean coast, and the Mediterranean coast. Istanbul is proving particularly popular with investors as there are many buy-to-let opportunities due to the large population and a demand in housing. These areas have a number of properties that are available in affordable price ranges. On average a one-bedroom apartment is £25,000, a two bedroom apartment is £50,000 and villas are from £90,000. Overseas mortgage brokers are reporting nearly 150% increase in enquiries about buying property in Turkey, whereas enquiries for Spain has fallen by about 30%.
Property prices in Turkey rose about 18% in 2007 after a change in the country’s mortgage laws made finance available to overseas buyers, which means Turkey is turning out to be a major lucrative venture for today’s property investors.
When it comes to buying property, Turkey requires foreign buyers to have a 25% deposit, except if the British investor living in the UK at the time of applying for a mortgage is applying for the loan in Euros. Then the investor may be able to borrow up to 100% of the property value. It is quirks in Turkish law that can lead to confusion for many property investors, therefore legal advice should always be sought before any contract on a property is signed.
Once the sale and purchase conditions are agreed with the owner a verbal agreement is made. You will then need to sign a reservation fee (about £2000) and it is advisable to ask for a copy of the Title Deeds and check whether the deeds belong to the property. You will then need to check that all licenses and official permits for the property has been properly obtained, that there are no over-due taxes to the Tax Office or debts to the utility companies owed by the current owner. To assist with the purchase you will need to register with the local tax office and open a bank account. A preliminary contract is then drawn up which commits you to the purchase and then the deposit is paid. When budgeting for buying property in Turkey, allow an extra 10%of the purchase price for associated fees, such as estate agents fees, stamp duty and legal fees.