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Turkey holiday property tops overseas investments predictions for 2009
Category - Global Real Estate - International Real Estate News
Overseas investment research among Antalya city’s bussiest realtor brokers by Turkish Property World reveals that Bulgaria, Turkey and France are the countries they believe will see the biggest demand for properties over the next three years due to cheaper property prices.

The International Personal Banking League of Buying Abroad reveals the top countries to buy properties over the next three years as:

1. Turkey + 75%
2. Bulgaria + 56%
3. France + 46%
4. Portugal + 41%
5. Spain + 31%

Over half (53%) of brokers put the growth in demand for overseas properties down to increasingly cheaper properties and interest fuelled by the media. Likewise, a third (33%) cited seeing an increasing number of adverts from overseas countries in UK & Russia leading media.

As a result, nearly a third (31%) of brokers reported an increasing number of queries from their customers. 15 per cent of brokers believed that higher prices in the UK, and a better return on investment was a reason to predict a growth in these countries over the next few years.

Despite increased interest from property investors in emerging countries such as Turkey and Bulgaria, there is still demand for the ‘old favourites’ such as France and Portugal. Spain still remains a top favourite as brokers reveal the demand for Spanish mortgages kept nearly two thirds (65%) of them involved in the overseas market.

The Spanish mortgage market is still very attractive according to four in 10 brokers and almost a third felt that the demand for Spanish mortgages in the UK would continue to increase in the future.

Carol Smith, Head of Business Development for Turkish-Property-World.com said: “The research has given us a real insight to what brokers feel will be the most successful property markets over the next few years. With the expansion of the EU, better transport links and an increase in low cost airlines offering cheap available flights to countries all over the world, the choice when buying abroad has increased significantly.

“When looking to invest abroad buyers are being braver and looking to new markets but it is also interesting to see that people still like sticking to what they know and prefer to buy in countries that they are more comfortable with and have holidayed in frequently.”



How to buy the right holiday property in Turkey?


The last few years has seen a dramatic increase in the number of overseas investors buying holiday homes in Turkey. Warm summers, mild winters, fantastic scenery and great food are just some of the factors that have combined to attract unprecedented international investment. And as if that wasn’t enough, low interest rates, the continuing boom of Turkey's housing market and the growing demand for self catering accommodation from the tourist industry means that an investment you make now will yield impressive returns in the years ahead.

Where to buy in Turkey?

This clearly depends on your personal preferences, but if you want to gain income from renting out your Turkish property to holidaymakers you do need to do some research.

Sports lovers should investigate Side, Alanya, and particularly for golfers, Belek. Each of these regions enjoys a strong tourist industry and it will be easy to generate income by letting your home to holidaymakers.

If sun, sea and sand are at the top of your list of priorities, give some thought to buying a property in the Antalya or Kemer; both of which are renowned for breathtaking scenery, an excellent climate, superb beaches and crystal clear seas. Between them in the area of Antalya includes the famous holiday destinations of Lara, Kundu and Konyaalti, each with a ready supply of holidaymakers.

If you prefer the quiet life of traditional Turkey, you may want to consider buying a property in Kas, Kalkan and Fethiye. These areas are relatively unspoilt and the property prices tend to be lower being distant from the airport, and do be aware that rental incomes will be lower than in other regions and your property may be more difficult to let.

What to buy in Turkey?

Again, this depends on your personal preferences and budget but you also need to consider the type of property and the market you’re aiming at. If you want to start enjoying your property in Turkey immediately, look for pre-owned (resale) property rather than off-plan opportunities. One of the advantages of buying resale property is that you can often buy the furniture at the same time which means more time spent in the sun and less shopping, as well as fewer worries about holidaymakers damaging your prized possessions. Don’t forget to check out the rental prices of similar properties so you can get an idea of what income to expect during the holiday season.

Turkey Apartments

These are ideal for first time buyers and investors who are more interested in regular rental income than personal luxury. Most of them have been built expressly to service the tourist industry, are inexpensive to buy, cheap to maintain and situated in close proximity to the main tourist resorts.

  • Viewed as a secure investment.
  • Value for money.
  • Low community charges.
  • Usually spread amongst many apts.
  • Good rental property.
  • Within a complex - size varies from 500 apartments to 50 apartments.
  • Noisy with neighbours in close proximity.

Turkey Villas

Much sought after by holidaymakers with a larger budget, a detached villa will generate a higher rental income and gives you much more scope for creating a real home from home. Most come with a private pool and many are of an individual style and design.

  • Ideal choice for buyers with a good amount to spend.
  • Good investment given all year round high demand.
  • Little maintenance.
  • Comparability with a proper house.
  • Comfortable to live in.
  • More private than apartments.

Turkey Village Properties

If you want a rural retreat you’ll find thousand of rustic hideaways throughout Turkey, offering the chance to really live the Turkish life. If you’re buying an older property be prepared to pay for higher maintenance costs and make sure that a qualified professionals check the condition of the house and its wiring and plumbing.

  • At times ridiculously cheap.
  • Often in real need of extensive refurbishment.
  • Very low running costs.
  • Property often sold with large amount of land.
  • Own utilities ie well, septic tank etc.
  • Rural-some distance from towns or cities and even basic amenities.
  • Privacy gets as remote as can.

Click here to find out more about Turkey Villas



How to buy the right retirement property in Turkey?


A relaxed lifestyle, a fantastic climate, a lower cost of living: these are probably the three top reasons why so many people are choosing to buy retirement property in Turkey. But it’s a huge step to take so what should you consider when you’re looking for your dream retirement home? First and foremost, you need to think about where you want to live.

Turkey is a huge country and the climate varies significantly from north to south. Some investors avoid the northern regions which can be cold in winter and others avoid the inland regions, where temperatures often drop below zero in the winter. However southern Turkey, Antalya in general is much different where there's 300 days of pure sunshine.

You also need to think about the type of area that you live in. Inland Turkey is tranquil and relaxed but you may find that medical facilities - doctors, hospitals, dentists, opticians and so on - are too far away from you. Likewise, the local availability of shops and tradesmen such as plumbers, electricians, builders and others should all be taken into consideration.

Fortunately, there are thousands of people who have already made the move and are already living the dream. This means that if you choose wisely you’ll have a ready-made support infrastructure from like-minded people living nearby who can give you local advice and support to help you settle in. In fact, many people who retire to Turkey find that it opens a whole new social life for them! According to a report by the Institute for Public Policy Research published in December 2008, an astounding 68,000 Britons now live in Turkey for at least part of each year and 64,000 full time. Nearly 10,000 homes have been sold to British buyers in the last few years. Infact, Antalya has been exceptionally responsive to the needs of its growing expat community, providing utilities bills in English, an English helpdesk at the council offices, and council-organised Turkish lessons to help new retired foreigners settle in.

If you’ve decided on an area, take the opportunity to enjoy a couple of short breaks there, moreover taking a visit to some of the major amenities around could be worth the while. Flights are inexpensive to Turkey, and if you visit during the low season, you can rent a villa at surprisingly low rates. Don’t forget to visit during the summer, too, as many areas have a completely different feel to them in the peak season. Time spent holidaying lets you explore the surrounding area and gives you a chance to talk first hand with people from your own country who have already made the move.

The Benefits of Retiring to Turkey

  • You are guaranteed a good climate in Turkey. Sufferers of arthritis and rheumatism will especially benefit from the mild winters in Turkey.
  • You’ll have a more relaxed lifestyle. You’ll find less stress, more openness and a wonderful feeling of family and community.

Your money goes further. The cost if living in Turkey is very reasonable (especially compared to, for example, the UK) and you’ll be able to enjoy a high standard of living.

You still get your pension. If you move to Turkey from a country in the EU you can have your state pension paid to your Turkish bank account

It’s easy to get to. With frequent budget charter flights from more than 30 of Turkey's domestic and international airports, traveling back to see your friends and family from Antalya will be easier and cheaper than ever before.

The Turkish language is easy to learn. Turkish is one of the easiest languages to master and you’ll soon find yourself speaking like a native.

You’ll be in great company. Thousands of people before you have already bought a retirement property in Turkey and, generally speaking, they are happy to welcome new members of this rapidly growing community.

Turkey has an excellent medical service which, if you’re of retirement age and drawing a pension, is can be free of charge.

Click here to find out more about Turkey Apartments



How to buy the right investment property in Turkey?


If you are considering buying a property in Turkey as an investment, now is the time to make your move! At a time when Antalya’s airport has hosted 5 million tourists in 2007, an amazing 7 million in year 2008, a predicting for sharp increase in traffic to all the Turkish holiday resorts over 2009 and the next few years is inevitable. Many people believe that the current rate of development will not be able to keep pace with the increased demand for private and holiday accommodation.

Completed Turkish real estate sales to foreigners went up by an amazing 59% in 2008, reaching to a total $2.9 billion! (more than Spain and Portugal), which clearly shows that even without EU membership, purchasing a property is safe. Everyone in Turkey remains optimistic about Turkey's eventual EU membership, but even before membership Turkey has already become an international property hotspot because of the ease in purchasing property, constant price rises and low taxes.

Total 88% of foreign-owned property is located in 10 cities, the top 5 being Antalya with 94,610 properties; Istanbul with a surprisingly low 30,695; Mugla (the location of Bodrum) with 18,251; Aydin (Didim, Akbuk and Altinkum) with 15,839, and Izmir with 14,572 foreign-owned properties.

Facts and figures for Investors

The result? House prices are set to rise still further so it’s a great time to invest. It’s impossible to predict exactly what return you’ll get from your investment but recent reports from various sources agree that it will be high. For example:

  • Ajans Press has recently reported that property prices along Turkey's Mediterranean and Agean coasts rose by more than 25% in the last year alone.
  • Research by Turkey's National Statistics Institute predicts that Turkey’s immigrant and population will rise to as much as 5.5 million by 2010, representing in the region of 13% of its population, compared to just 5% in 2004. The rising demand for property will continue to fuel the growth of the property market.
  • Turkey's Ministry of Development has gone on record as saying that the average increase in Turkish house prices was 17.5 percent in the first quarter of 2008 compared to the same period in 2009.

What to Invest in Turkey

Before you decide on what you want to buy, take the time to do some research. Clearly, if you’re planning on earning an immediate income from your investment you should look for an existing property (commonly referred to as a resale property) in an area frequented by holiday makers. Take a look at the rental market, get a feel for how much you can rent your villa or apartment for. Don’t forget to factor in other costs such as maintenance and property management charges (someone will have to look after the property in your absence) and remember that property with pools that are close to the beach will yield higher rental incomes.

Buying a run down place for renovation has the advantage that you can improve the property in ways that will specifically attract holiday makers. It’s a good way of adding value to your property while converting your economical investment into a higher yield, and getting building work done in Turkey is a choice for all. As for most of the part, the high quality turkish craftsmanship will impress you.

Off-Plan Investments and Buy-to-Sell Properties

Another popular option is to buy off-plan. This is where a developer decides to build a number of properties on a large plot and needs to sell them before they have been built to fund the development. The advantage here is that you can secure the property by paying a deposit and then a percentage (usually around 30%) of the purchase price.

Buying Benefits at a Glance

As the development progresses and the properties get nearer completion, their values rise because there is less urgency to sell them and prospective buyers can get a clearer idea of what the final product looks like.

If you sell your property before completion or sell brand new property within 5 years, as a foreigner you won’t have to pay any capital gains tax.

Properties that are sold off-plan are usually very competitively priced because the developer will want to maximize the amount of cash he has to fund the development. In other words, the more cash the developer has, the less he has to borrow and if he borrows less then he pays less interest to his bank.

You can choose a prime location within the development and you can often specify the furnishings and decor of the property, all of which helps you to get a better return on your investment.

 
Category(s)
Global Real Estate - International Real Estate News
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