Guide to buying apartments in Turkey
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DESPITE its delightful climate, friendly people, stunning scenery, wonderful beaches and rich cultural heritage, Turkey remains a relatively well-kept secret. Unlike some of our closer European neighbours, Turkey is still largely undiscovered – dare we say unspoilt! – by the British.
The leading overseas property purchasing magazine, A Place in the Sun, rates Turkey as one of the latest property hotspots, with a good rental market and value for money, and also mentions the added benefit of “established agents” such as Discover Turkey Homes. There are many reasons why now is a good time to invest in Turkish property. Just a few of them are outlined below.
Turkey is increasingly accessible by plane. Alanya is just 90 minutes from the principal airport at Antalya. A new international airport, Gazipasa, is due to open in 2009 and is just a 30 minute drive from the centre of Alanya.
This will have a positive influence on property prices in the region. The new development will result in an increase of low-cost flights to Turkey from 13 different UK airports, with more budget airlines introducing regular services.
The public transport system in Turkey is the envy of many countries, with a solid and modern infrastructure. Its network of bus routes uses modern high-quality vehicles running at frequent intervals. Train journeys, on the excellent rail network, are cheap compared with those in the UK.
Similarly, internal flights are relatively inexpensive, with local ferries providing a good service in major coastal locations.
Foreign direct investment continues its dramatic increase, meaning a growing and stable economy. Turkey enjoys low unemployment, economic growth amongst the fastest in the world, and inflation in single digits.
The cost of living is low, particularly compared with the much higher cost of living in the United Kingdom. Property prices have been rising between 15% and 25% per annum over the last few years, and an increase in tourism supports a sound rental market. Strong capital growth for property is anticipated in the next five years; and with membership of the European Union likely to happen in 2015, property prices are set to continue their rise (as observed in other countries before and after acquiring EU membership).
Turkish-based mortgages are now available for non-Turkish nationals. After you have owned your property for five years, any profit you make from selling your Turkish property is Capital Gains Tax Free.
This, combined with the double-taxation agreement between Turkey and the UK, means that there are very attractive capital growth opportunities, making the purchase of a property in Turkey, one of the best investments your money can buy
Buying a property in Turkey is a relatively straightforward process: over 17,000 UK residents have already purchased property there. Like the British land Registry system, property purchasers are provided with a TAPU—which is the equivalent of a UK Title Deed.
Property is owned on a freehold basis with a wide range of dwelling types from one-bedroom apartments through to luxury villas – all at prices similar to those of Spain during the mid-1980s.
Construction quality is of a high order, with strong local authority control. Properties have high specifications, with high-quality bathrooms, fully fitted kitchens and air conditioning. All external building work is stopped during the summer season by law. It is clear that property developers in this part of Turkey are working closely with the local authorities in a combined strategy for the area.
Turkey offers a longer rental season than many other emerging property markets.
The areas around Antalya and Alanya, including Belek and Side offers solid rental yields for any buy-to-let investors who purchase in the best tourist locations helped by the almost 12 month season.
The highly respected monthly magazine ‘A Place In the Sun’ states in its October 2007 issue that Turkey is “value for money…. established agents … good rental market “ See “Discover... the financial issues” for more details of rental potential.