Hi guys,

What are thoughts on Istanbul?

I saw the long thread above on Turkey...but not much on Istanbul.

Anyone know more on mortgages - look all set to kick in next year.

Looks a good area to consider for investing.....as long as finance all kicks in pretty quickly and locals can get finance.

Anyone bought there?

Not bought, but lived there.

Remember the earthquake a few years ago with "sandstone" houses crumbling? Istanbul is an enormous city with the population exploding - building is done on the cheap & I wouldn't invest in "new build". It's also a highly corrupt city, lots of greased palms and I for one would not sink my cash in to it and then fly back to blighty leaving my premises unguarded.

I have two 3 bedroom apartments in Istanbul, one brand new build near the new Stadium http://www.avrupakonutlari.com/V1a/intro.html and the other is an older building but in the center of Bakirkoy (which is a mini city in Istanbul) they have earthquake insurance. I bought these cash and would not consider 'borrowing' in TL.

These properties are not for 'expats' but for local consumption and I bought them to rent out. I get around 8% a year with the value increasing roughly inline with inflation. I am in it for the long term due to having family ties and so have on ground help in dealing with the all the paperwork. The currency is very volitile, I get paid in dollars in Dubai so I have used Turkish Lira to hedge. In cash you can get around 17% in the bank! I have been investing in Istanbul since 1997 and have seen financial crisis, crashes, housing slumps etc its not for the faint hearted. After China and India Turkey ranks up there with growth.

I would avoid the brit coastline properties.

I dont suppose British residents (and living in the Uk permanently) can make use of the high interest accounts?

If you are prepared for significant currency risk (and there will be over appreciation and devaluation) you can open TL accounts with Yapi Kredi, Garanti, Akbank, FinansBank and buy bank or government bonds. As long as the IMF and the USA keep bailing them out things keep ticking along.

Do you know anything about Regnum and their buildings for instance Astrum Towers? I saw the show flats on the land where a part of the development was going up. They appear to be solid and stylish. In your opinion is this a good area as it is up and coming close to the Motorway, Bookfair and rentals are for the local workforce. In fact Ready2Invest were amongst other agents highly recommending them. As with any agents they are always looking for their commission. There have been some ridiculous statements made about property values increasing about 40-80% around the outskirts of Istanbul. However, Regnum have been more realistic with their ideas on values and have expressed it was more like 20% annual increases.

It is so difficult deciding where is best to invest for the long term. However, it is a commercial centre first with some inspiring architectural units. There is also a Carrefour I believe close by. It is being followed by residential developments. But this earthquake which is predicted and imminent how does this impact on the off-plan developments? How will this affect buyers? So many questions to ponder!!!!!

Final question are foreigeners able to get a TAPU for purchasing within Astrum Towers?

I don't know about the specfic development, although I know the area, yes there is Carrefour nearby and a run down theme park. Traffic on the coast motorway is murderous. I have to say its a little way out, but so is the other development elitkent however that is on the 'main' toll motorway into town. There has been plenty of building but not of that quality in that area. I would say surrounding residential prices are on average lower, its not the most desirable location. 20% increase gives you about 4 - 6 % in real terms the bank gives you 16 - 18.

There should be earthquake insurance and the structure will be validated by the municipality, I am sure if its a reputable company it will be not be cutting corners. Yes I believe a foreigner can get ownership title, although both 'deeds' are in my wife's name. The prices seem reasonable if the standard and finish is high, maybe you would be quoted differently if you offered cash.

Good luck.

In view of investors' experiences with "Ready2Invest", their recommendation should ring warning bells.

You say it is not a desirable area. I have been told that Elitkent has shot up in price because it is now within an established area or is this all hype!!!

Would Astrum Towers not be a good bet in the medium to long term when things have been built around it and more residential areas get built? It has always been the case that the less desirable areas have then become the long-awaited for desirable areas. I am hoping that this is one of them. But is it worth taking the risk.

Regnum also have another development on the outskirts of Bodrum, about 10-15 minutes drive. Also close to the newly proposed golf courses. The development is within a bay with breathtaking views. Maybe I should just hold out until I get over there as I intend living in Turkey. Perhaps more time spent looking (although I have done a fair bit of that!) might be wiser.

Radio. I hadn't heard anything bad about Ready2Invest*. Where will I find more on the bad experiences some people have had?

*I don't wish to defend Ready2Invest. I ask as they have been helpful whenever I've been in touch and they are like a breath of fresh air compared to many of the agents that we meet at Expos (I shan't name them for fear of thread being removed!)

Hi DB,

I don´t know about Turkey, but 10 years ago I opened a savings account in Bali when the rates where really high. Put a small amount in there and I´ll see what it´s amounted to one day (AKA Restaurant at the End of the Universe).

Best people to speak with are probably isbank.co.uk - a Turkish bank in London who might be able to advise you.

As for Astrum Towers, it´s about as far outside of Istanbul as Watford is from Trafalgar Square. Invest in central Istanbul if you can, but I wouldn´t go for a domestic rental two bedroom apartment because it´s near a big shop, when you can buy a three bedroom villa on the coast for the same money.

Unless the theme park has moved since I lived in Istanbul that is way, way, WAAAAAY out of town - and I'm guessing transport infrastructure hasn't picked up *that* much.

You have to understand that in Turkey there are few high earning individuals who will pay silly rents but most people are earning less than £400pcm. I know Turks who are paying $2000 pcm+ for smarter areas on the European side of the Bosphorus however if the development is only going to be targeted at locals they are paying about £150-250 pcm for 80m2 + 2 bed apartments in most cases in residential areas. Its all about location location in Istanbul and the traffic is a total nightmare so I would imagine that no professional people working in Istanbul centre would want to spend 1-2 hours getting to work.

At the top end prices are rising still as there is a definite shortage of top end property but most wealthy turks prefer a quality city centre apartment and then own a summer house in one of the summer resorts where their family will spend most of the summer.

I would suggest that you spend time there without even spending a fiver on it before making a decision

Hey Everyone,

This is Onjul from Turkey/ Istanbul. I'm a retired police officer and I also have been running a real estate agent for 14 years. My office in the area which is about 6-7 min to Ataturk airport by driving. The area is called Halkali Toplukonutlar. That area attracts all the attentions recently and it will probably be one of the most developed area in Istanbul in near future. Now I just wanna explain why it gonna be one of the developed area..This area is 15 minutes to Atatürk Olympic Stadium(Tramway is coming to that area soon) Turkeys biggest hospital will build in that area (nearby of Atatürk Olympic Stadium) and one of the biggest Carrefours in Turkey is building again in this area. It will be done probably in 2 years or something. Now, as I'm quite experienced in that area, I'm just looking for people who would be interested in that area. There are also Avrupa Konutlari ( http://www.avrupakonutlari.com/V1a/halkali/default.asp ) here as well. Beside that Soyak Olympiakent, Gunespark( http://www.gunespark.com/sibertr/defter.asp ), Ihlamur Evleri ( http://www.ihlamurevleri.com/ ). sum of the flats will be 40.000 here soon. I would answer any questions.(private or public) my msn is onculkoparan@gmail.com

Warm Regards, Onjul KOPARAN.. Oz Emlak