Finding the right Investment Real Estate in Turkey

If you are considering buying a Real Estate in Turkey as an investment, now is the time to make your move! Since March 2007 Turkish Mortgage interest rates are low and Real Estate prices are rising steadily. In fact some buyers are now making their investment Real Estate purchase with turkish mortgage. At a time when Antalya’s airport has hosted 5 million tourists in 2005 an amazing 7 million in year 2006, a predicting for sharp increase in traffic to all the Turkish holiday resorts over 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 2006, reaching to a total $1.8 billion! (near Spain and Portugal), which clearly shows that even without EU membership, purchasing a Real Estate is safe. Everyone in Turkey remains optimistic about Turkey’s eventual EU membership, but even before membership Turkey has already become a hotspot because of the ease in purchasing the Real Estate, constant price rises and low taxes.

88% of foreign-owned Real Estate is located in 10 cities, the top 5 being Antalya with 14,610 properties; Istanbul with a surprisingly low 10,695; Mugla (the location of Bodrum) with 8,251; Aydin (Didim, Akbuk and Altinkum) with 5,839, and Izmir with 4,572 foreign-owned properties.
Facts and figures for Real Estate 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 Real Estate 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 2001. The rising demand for Real Estate will continue to fuel the growth of the Real Estate 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 second quarter of 2006 compared to the same period in 2005.
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 Real Estate (commonly referred to as a resale Real Estate) 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 Real Estate management charges (someone will have to look after the Real Estate in your absence) and remember that Real Estate 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 Real Estate in ways that will specifically attract holiday makers. It’s a good way of adding value to your Real Estate 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.
Turkey 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 Real Estate by paying a deposit and then a percentage (usually around 30%) of the purchase price.
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 Real Estate before completion or sell brand new Real Estate 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 Real Estate, all of which helps you to get a better return on your investment.

Buying Property in Turkey

Traditionally many people have bought property mainly in European – Mediterranean countries such as Spain, France, Italy, Portugal and Cyprus as well as famous US destinations like Florida. However, these places have recently become extremely expensive and saturated. Nowadays, the UK, Irish and European citizens have been seeking other alternative overseas destinations with a fresh property market, at the least turn some yeild on investment.

If you, as a foreigner citizen, prefer buying a property at a very reasonable price which you can use yourself for regular holidays and that you can also rent out to get some income in a country where the summer is nice and long, stretching from March to November, and there are many tourism attractions, then Turkey is the most appropriate destination for you.

Buying property in Turkey has become so uncomplicated and easy that in 2005 almost 50,000 foreigners already owned a villa or a second home here. Interest of foreigners buying a golf or holiday property holds strong for the 2007 season, while real estate is mainly purchased for either investment or residential purposes. There are very quiet, environmentally very clean, secure and cheap places for old people to live whereas there are very good job and business opportunities for qualified people who would like to work or to establish their own enterprise in Turkey.

Learn more about the beaches, towns, activities, history, restaurants and shopping available in the most popular holiday property regions of Antalya, and discover your favorite property place under the sun!
Buying Property in Turkey

1.Who can buy Turkish property?
2.Where can you buy property?
3.What property can you buy?
4.How to buy property in Turkey?

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1. Who Can Buy Property in Turkey?

According to the law on ‘property purchase by foreigners in Turkey’ enacted on January 7, 2006, foreign nationals (real persons) are able to acquire real estate in Turkey on the conditions of being reciprocal and complying with legal restrictions.

In implementation of the reciprocity principle, it is essential that real estate acquisition rights given by a foreign country to its own citizens and to commercial companies established in foreign countries according to the laws of these countries are also given to the citizens and commercial companies of the Republic of Turkey.

There is a reciprocity between the United Kingdom, Ireland, Germany, Holland, Denmark, Sweden, Norway, Finland, France and 100 more other countries and the Republic of Turkey regarding real estate acquisition. Furthermore both Turkish Citizens and foreign owners have equal property-ownership rights.
2. Where can you Buy Property in Turkey

A recent change in Turkish legislation (19 July 2003) now permits foreigners and foreign commercial companies to buy a property outside the boundaries of a municipality, i.e. council district (Belediye) and within a village or rural area, however foreign nationals and are not allowed to buy property in historical, mining, energy, strategic military and security zones of Turkey.
3. what Property can you Buy in Turkey

In general, properties in Turkey are Freehold type and not Leasehold. Property prices have steadily been increasing. Real Estate in Turkey can be found from €30.000 up to a couple of hundred thousand Euros. The property price basically depends on the location of the property, the quality of the materials used during the construction phase, architectural features of the property, ease of transportation, economic activities in the region, and availability of services and amenities nearby.

There is a wide range of options such as detached, semi-detached and terraced houses, purpose-built apartments, cottages and luxury villas. Quality residential buildings are available everywhere in Turkey.

In real terms foreigners can only own up to a maximum of 2.5 hectares (25,000 m2) of land and property. Upon application the Council of Ministers may use its discretion to increase this threshold to a maximum of 30 hectares (300,000m2) providing this figure does not exceed a total of 0.5% of the land area of the province in question.
4. How To Buy Property in Turkey

The majority of property purchases in Turkey are made through a real estate agent.

@ turkish-property-world.com we promote a quality portfolio of excellent properties available for investment. We are not lawyers, nor do we intend to be, and as such turkish-property-world.com strongly recommends to all our clients that they instruct a lawyer who can give qualified legal advice and conduct the property purchase on their behalf. We only offer advice on lawyers whose services have been recommended to us via prior clients, while our mission is to sell properties with professionalism and offer an individual, personal service to all our clients. Below is a breakdown of what is involved:
4.1 Reservation Deposit

A reservation deposit of 3-5% is taken, when a specific plot or property is reserved. This takes the property off the market and freezes the price of the property.
4.2 Appointing a Solicitor or Lawyer

The best way of appointing a lawyer is to have one recommended to you. If this is not possible, we can recommend one to you.
4.3 Power of Attorney to your Lawyer

You can decide on how much power of attorney you would like to give to your lawyer. Some prefer to be in Turkey for the whole process, whereas others prefer their lawyer to complete all the transactions on their behalf. Power of attorney can be given for government office works, water and electricity hook-up, transfer of property ownership .
4.4 Property Ownership Transfer

Once the full amount of the property has been paid, the deed title transfer takes place at the Property Registry Office. Both the buyer (or lawyer of buyer with power of attorney) and the seller require to be present to sign over the deed new title in your name.
4.5 Property Buying Extra Costs

Say you buy a villa for € 100,000
Stamp Duty fee € 1,500
Conveyance fee € 3,000
Other Legal costs € 500
Total Cost € 105,000

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Turkey Real Estate For Sale
Turkey Property For Sale