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bluenose

Buying In Turkey

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Hi

I hope some of you can give me some advice.

I am thinking of buying a property in Turkey mainly for investment (Personal pension policies not being what they were !!!).

With so many companies to choose from can any of you recommend a reliable company.

I have seen a couple of companies that look ok.Does anyone have any experience of

1.MacAnthony Realty 2.Churchills Turkish Investment Property.

MacAnthony seem very professional however the prices seem a bit high and Churchills site seems very good but less professional :

Additionally I am unsure which area to invest in but I am leaning towards the Bodrum Peninsula.What do you all think.

Any advice would be greatly appreciated.

Regards

bluenose :unsure:

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Hi

I hope some of you can give me some advice.

I am thinking of buying a property in Turkey mainly for investment (Personal pension policies not being what they were !!!).

With so many companies to choose from can any of you recommend a reliable company.

I have seen a couple of companies that look ok.Does anyone have any experience of

1.MacAnthony Realty 2.Churchills Turkish Investment Property.

MacAnthony seem very professional however the prices seem a bit high and Churchills site seems very good but less professional :

Additionally I am unsure which area to invest in but I am leaning towards the Bodrum Peninsula.What do you all think.

Any advice would be greatly appreciated.

Regards

bluenose  :unsure:

I very nearly bought in Bodrum last year. Even the agent warned me that you can't rely on rental income, due to massive over building. I think the problem with places like these is that foreigners like to buy new propery, with all the goodies that are thrown in by the developers. Selling second hand would not be easy, IMO.

Generally, I think the best time to buy was pre 2004. Of the properties I looked at last year , many are still advertised for sale, some at lower prices than Aug 2004.

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Although I am a confirmed global property bear, Turkey may offer some opportunites.

If you have access to the real 'real estate market' not the expat estate market there maybe some legs in a mini boom for the next two years.

1. The govt are introducing a legal framework for mortgages ...believe it or not due the inflation etc there has not been an asset backed mortgage. Renting is the norm in Istanbul, but within a matter of months people will be able to actually afford to own their own apartment.

2. Most people would buy local govt debt through banks that gave up to 15 - 25% a year (inflation of course was high) however now with a new stoppage tax, they are effectively discouraging investing in debt, therefore its either the stock market or the new mortgage fuelled property market.

3. Turkey is running a surplus on its govt account which is required to pay off hugh debt that they regularly turnover. Growth is running between 5 and 3% a year.

4. Turkish Lira however will probably depreciate next year, by how much is anybody's guess but it will probably due to the deficit it runs on its current account.

5. Local property market will unaffected by October 4th issue, (EU club membership is discussed)

New projects around Istanbul's Ataturk Stadium are re-generating a rather run down area, they are built to a very high standard and provide significant facilities. However this is for local consumption not for brits looking for holiday abroad. Rent will return probably be around 8 - 10 % when completed around 2007 Feb. If you can read Turkish you can have a look at this site, they went on sale 23 rd Sept.

http://www.avrupakonutlari.com/

When dealing in Turkey caveat emptor.

Good Luck

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If you go direct to the vendor you can save up to 30%, this may not be a big deal while prices are going up by 30%+ per annunn but if things cool it could be.

Regards

mitch

:P

[/quote

]

Mitch - My experience is thjat they're not still going up. See my comments a couple of post up.

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Storm warning over Turkey's economy

By Vincent Boland

Financial Times, November 12 2005

Turkey suffered devastating financial crises in 1994 and 2001 caused, among

other things, by an out-of-kilter balance of payments and an overvalued

lira.

But although the economy is now riding high and foreign investment beginning

to arrive, Steve Hanke, professor of applied economics at Johns Hopkins

University in Baltimore, says another crisis may be on the horizon.

The country's balance of payments today, he told Yased - the Turkish Foreign

Investors Association - this week, was eerily similar to 1994 and 2001. The

lira was perhaps 50 per cent overvalued, and it was all happening at a time

when the US Federal Reserve was raising interest rates. Turkey was

"potentially set up" for another balance of payments crisis. "I'm not

predicting it," he said. "I'm just pointing out that Turkey is undergoing

the same general pattern as prior to [the crises of] 1994 and 2001."

If Turkey were to suffer another self-inflicted financial collapse it would

cause a political crisis that would almost certainly bring down the

government - as happened after the last one - and derail its economic

recovery. It could also raise a question mark over the country's aspiration

to join the European Union. That is why both the government and Turks more

generally appear ready to accept, for now, the strictures of the

International Monetary Fund, which has helped to engineer the country's

recovery. The current stability is clearly producing results: the Turkish

economy expanded at 8.9 per cent last year.

The most worrying factor for Turkey, Mr Hanke said, was the current account

deficit, which is likely to be 6.3 per cent of gross domestic product in

2005. Rising portfolio investment is financing much of this deficit, but

such short-term capital inflows may not be sustainable, especially if the

global environment turns against investing in emerging markets.

A report from Lehman Brothers this week warned that Turkey was vulnerable to

external shocks.

"The deficit is financed through debt and portfolio flows, even though FDI

is starting to pick up. Furthermore, notwithstanding the central bank's

aggressive buying of dollars through its interventions, its reserves are

falling in relation to the country's import bill," the report said.

Mr Hanke is a well-known critic of the IMF. He also took a swipe at the

Turkish central bank, which is moving to explicit inflation targeting from

January. A foe of inflation targeting, he said the bank was adopting "the

latest fad" among central bankers, which would leave Turkey with

"punishingly high interest rates if the bank is to meet its inflation

target". Real interest rates in Turkey were already the second-highest among

emerging markets, after Brazil, he said. (The central bank cut its borrowing

rate yesterday to 13.75 per cent from 14 per cent.)

His comments sparked some swift rebuttals, although the Finance Ministry did

not comment. "I think he's completely mistaken about Turkey," said Mustafa

Alper, Yased secretary-general. "Our financial balances are not perfect, but

they are far better than they were four years ago."

Erhan Aslanoglu, a professor of economics at Marmara University, said the

lira's overvaluation might be 25 to 30 per cent against the euro, but it

might not be very important. "I accept that it is a risk," he said. "But

what is different in Turkey now is that the lira is free-floating, so its

overvaluation is not guaranteed. A correction is likely because of

international and specifically Turkish factors, but it is not going to cause

a crisis."

He said a big increase in productivity in Turkey since 2001 also justified a

highly valued lira.

Mr Hanke said his gloomy scenario depended on China's bowing to US pressure

to revalue its currency, a development he said would cause "very serious

deflation and a major slowdown in China".

Mr Hanke said emerging markets were living on borrowed time. "It can't get

any better than it has been in the past four years and there is a very high

probability that it will get worse in this Fed tightening cycle," he said.

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Hello,

I have invested in Turkey and have been living and working overseas for many years - I now run my own independent overseas property business to offer a genuine & useful service to people investing and/or moving overseas - in my opinion, even though we work with developers worldwide, Turkey is still proving to offer some of the best returns in the overseas property market - we offer returns of 30% upwards in time scales of just 8 months to a year. Like everywhere, location is important as is quality. I also always recomend an independent english speaking lawyer as many of the horror stories still classically come from people who have trusted local agents to take care of the paperwork!

If you would like some information on the types of returns you can achieve and/or guaranteed rental options please feel free to email me to [ Removed by Moderator ]

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Hello,

I have invested in Turkey and have been living and working overseas for many years - I now run my own independent overseas property business to offer a genuine & useful service to people investing and/or moving overseas - in my opinion, even though we work with developers worldwide, Turkey is still proving to offer some of the best returns in the overseas property market - we offer returns of 30% upwards in time scales of just 8 months to a year. Like everywhere, location is important as is quality. I also always recomend an independent english speaking lawyer as many of the horror stories still classically come from people who have trusted local agents to take care of the paperwork!

If you would like some information on the types of returns you can achieve and/or guaranteed rental options please feel free to email me [ Removed by Moderator ]

Could you start by giving us an idea of the rental yields, insurance costs, maintenance costs, financing, bribes,management fees etc required to own property in Turkey?

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Could you start by giving us an idea of the rental yields, insurance costs, maintenance costs, financing, bribes,management fees etc required to own property in Turkey?

Do NOT rely on rental yield, whatever a salesman or woman tells you.

When I was looking to buy, even the sales firm that were showing me around (Cumberland) told me that I should not rely on this, sincve there was a complete glut of properties, compared to holiday makers.

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Hello

Sure there are catches in a lot of the deals offered - this is not just an issue in Turkey though! There are some areas where rental in Turkey can achieve good returns - what most Bristish agents fail to advise UK buyers is the strong holiday market which has always existed in Turkey, not just from foreigners but also from Turks themselves who travel to the Bodrum Peninsula to escape the hustle and bustle of city life in Ankara or Istanbul for example.

There is also an increasing demand for longer term rental as businesses expand and expectations of standards of accommodation are higher - some owners were very lucky last year and managed to achieve almost 100% bookings for the summer season - there is the potential that the demand for rental property will increase especially from Turkish holday makers close to new facilities such as golf courses and marinas - the wealthy Turks love to enjoy the good things in life as much as the next person but don't always want another home in their own country - they often prefer to invest overseas themselves in countries such as Dubai and Morocco where visas are not required.

Agents can only advise on what they know and often depending on their background and extent of research they do this may only extend to their own properties - Myself & my partner worked as area managers for a leading holiday company and carry out extensive ongoing research. We also work with the head of the association responsible for the estate agents on the Bodrum Peninsula to monitor the local market as well as foreign investment.

Rental is by no means a 'cert' or something to be relied on in most cases in Turkey but as with anywhere be clever about what you buy and where and it could reward you many times over!

As for 'bribes' etc - use a good company and you should save money not pay extra! Our clients only charge the actual fees due to the relevant authorities not the often inflated estimated or set fees charged by others. Whilst there are other legitimate companies in Turkey and indeed other countries there are also many to beware of - always make sure you ask the right questions and fully inspect the small print! Don't assume that if something isn't metionned it won't be appliciable - a good contract should protect you from every eventuality.

Lawyers fees will vary depending on the type of property you are buying and where it is as different municipalities charge different fees - fees for a very good english speaking lawyer for the complete process range from £599-£885. In my opinion this is well worth the money as we work with our lawyers to ensure the seller has the right to sell the properties, that there are no debts on them and that the rigts are fully transferred to you and protected in the interim. (With a law degree myself we often change contracts to be in the best interests of our clients)

All in all you can expect to pay up to 5-6% on fees and taxes to complete the purchase process but this will vary and you should always get an individual costing per property as often there may be benefits to purchasing certain types eg off plan with developer - we certainly offer discounts.

I hope this helps answer your questions - if I can provide any further information just let me know.

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Hello

Sure there are catches in a lot of the deals offered - this is not just an issue in Turkey though! There are some areas where rental in Turkey can achieve good returns - what most Bristish agents fail to advise UK buyers is the strong holiday market which has always existed in Turkey, not just from foreigners but also from Turks themselves who travel to the Bodrum Peninsula to escape the hustle and bustle of city life in Ankara or Istanbul for example.

There is also an increasing demand for longer term rental as businesses expand and expectations of standards of accommodation are higher - some owners were very lucky last year and managed to achieve almost 100% bookings for the summer season - there is the potential that the demand for rental property will increase especially from Turkish holday makers close to new facilities such as golf courses and marinas - the wealthy Turks love to enjoy the good things in life as much as the next person but don't always want another home in their own country - they often prefer to invest overseas themselves in countries such as Dubai and Morocco where visas are not required.

Agents can only advise on what they know and often depending on their background and extent of research they do this may only extend to their own properties - Myself & my partner worked as area managers for a leading holiday company and carry out extensive ongoing research. We also work with the head of the association responsible for the estate agents on the Bodrum Peninsula to monitor the local market as well as foreign investment.

Rental is by no means a 'cert' or something to be relied on in most cases in Turkey but as with anywhere be clever about what you buy and where and it could reward you many times over!

As for 'bribes' etc - use a good company and you should save money not pay extra! Our clients only charge the actual fees due to the relevant authorities not the often inflated estimated or set fees charged by others. Whilst there are other legitimate companies in Turkey and indeed other countries there are also many to beware of - always make sure you ask the right questions and fully inspect the small print! Don't assume that if something isn't metionned it won't be appliciable - a good contract should protect you from every eventuality.

Lawyers fees will vary depending on the type of property you are buying and where it is as different municipalities charge different fees - fees for a very good english speaking lawyer for the complete process range from £599-£885. In my opinion this is well worth the money as we work with our lawyers to ensure the seller has the right to sell the properties, that there are no debts on them and that the rigts are fully transferred to you and protected in the interim. (With a law degree myself we often change contracts to be in the best interests of our clients)

All in all you can expect to pay up to 5-6% on fees and taxes to complete the purchase process but this will vary and you should always get an individual costing per property as often there may be benefits to purchasing certain types eg off plan with developer - we certainly offer discounts.

I hope this helps answer your questions - if I can provide any further information just let me know.

The people who told me not to rely on rental income were Turkish local agents! And I have a friend with 2 properties who has never been able to rent them - despite trying.

Edited by Casual Observer

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Hi,

I found web site [ Website link removed by Moderator ] lots of Turkish properties listed. And I was shocked about the price difference between UK estate agents to local estate agents listed in this web sites from Turkey. Open your eyes, there is no need to pay 25-30% more than what the building worth for. You are always better of doing your own deal without a middle man anyway.

Fire Fighter

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Hi,

I found web site [ Website link removed by Moderator ] lots of Turkish properties listed. And I was shocked about the price difference between UK estate agents to local estate agents listed in this web sites from Turkey. Open your eyes, there is no need to pay 25-30% more than what the building worth for. You are always better of doing your own deal without a middle man anyway.

Fire Fighter

I will agree with Fire Fighter, I did buy a property in turkey last year through a local estate agent and I think did very well, with no problem,

check the web site and the prices looks good, did replly to couple of them and response is quick, worth the try

Duran

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Guest The_Oldie

I will agree with Fire Fighter, I did buy a property in turkey last year through a local estate agent and I think did very well, with no problem,

check the web site and the prices looks good, did replly to couple of them and response is quick, worth the try

Duran

I'm not surprised that you agree with fire-fighter since IP evidence shows that you are both the same person :rolleyes:.

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I'm sorry that Casual Observer had a rough time in buying in Bodrum - maybe it's coloured his views a bit

I've been to Bodrum 5 times in the last 8 months and bought three properties so I hope I know a bit about the market

1. I have never seen the stated 30% difference in buying direct from a developer or through an agent. It may go on in the outer reaches of the market but the market now is too competitive and no developer in his right mind is going to let it happen (they see the prices on the contract you know)

2. I have only seen a couple of instances where the same properties are quoted at different prices by different agents - but only a couple of thousand different in each case (for all we know they may be genuine errors)

3. Some developments are expensive for what they are - and Cumberland Homes is one of them - but...what's different in that from the UK?

4. Different estate agents do try to charge different commissions so go for a mainstream agent where the buyers commissions are clearly shown

5. Don't believe what anyone says about rental away from Bodrum town and it's immediate surroundings. However there is a very good rental market to Turkish nationals for long term summer rentals (a lot of wealthy people from Istanbul move to Bodrum for ALL the summer)

6. I agree it would have been better to have purchased one or two years ago. However there are still plenty

of reasons to suggest that the market has some way to go such as a burgeoning Turkish middle class and the advent of a Turkish mortgage system. Bodrum is not known as the St Tropez of Turkey for nothing!

But the bottom line is ..... please tell me where else around the Mediteranean can you buy a 900 sq ft 3 bedroom apartment with TOTALLY UNINTERRUPTED sea views with an international airport 30 minutes away for under £40,000

(PS I won't mention the cost of living, the niceness of the people, cleanliness of the streets etc etc)

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"you forgot abut the freedom of expression, the protection of minorities, and the liberated womenfolk"

OK - but before we start getting too high and mighty about this cast your mind over the rest of Europe in the last 60 years or so - Spain, Yugoslavia, Germany - even our own beloved country

In my mind Turkey is on the way to changing - let's not forget what it is (a secular Moslem state) and where it is. These things do not happen overnight. They deserve our support not brickbats

One area though they are way ahead of us -

- their icon is Ataturk probably the most important statesman of the 20th century in what he achieved for his country and by inference the rest of Europe

- our icons are Madonna and David Beckham .......... need I say more

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Only point I'd make about Turkey is remember it's an earthquake zone. You must therefore ensure that the building is a quality construction built to specific standards designed to resist collapse in a quake. As far as I know, this involves digging very deep foundations and using a steel frame in the building construction. I'd be concerned if the building was too cheap. The type of land the house is bulit on is also important.

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I am of Turkish descent (born in London) and visit turkey many times. I also speak turkish (not very well). I love Turkey and it's people.

I live abroad, not Turkey ! I left uk in 2003 - not unhappy about leaving UK, am as open minded as the next one.

What I can't get my head around is why people want to buy a second home abroad in the first place ?? And how little they will obviously know beforehand.

Imagine for one minute how long has it taken you to learn about your own country, your own culture, your own district, your own neighborhood, the different types of english people there are (honest,dishonest, liars, classy, snob, common etc), your favorite places/shops/etc.

Imagine having to relearn all of that again !!! That's what it's like going to a new country.

And believe me, Turkish is NOT an EASY language (I've been speaking it since birth)

As I said, I am of Turkish blood, and I'd have second thoughts about Turkey - and I LOVE the place/people !

It is a corrupt place (it's own people know/accept that), you have to be VERY careful (and this is advice that I received straight from my dear Turkish businessmen friends) - you can get ripped off, there are a lot of cheats out there (a bit lawless), and they are not afraid of anything/anyone.

Also, someone close once advised when the subject of purchasing a place abroad was raised "if you are only going to do it because you want a big head and will only be visiting it for 2 weeks a year, better to stay in a top hotel".

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Sold up and Renting Abroad, I think you've made an excellent point, not just about buying in Turkey but about buying a holiday home anywhere. Programmes like 'A Place in the Sun' have made buying, and living abroad, look deceptively simple.

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Sold up and Renting Abroad, I think you've made an excellent point, not just about buying in Turkey but about buying a holiday home anywhere. Programmes like 'A Place in the Sun' have made buying, and living abroad, look deceptively simple.

Thanks Izzy,

That's right, it doesn't just apply to Turkey, and it doesn't just apply to learning a new language. It will take place any foreign place you live.

Learning about the hospital/school/state systems, pensions, investments, how to find a decent dentist, how car insurance works, the roads/safety (are there any !), knowing which bank is best, what times they open, the banking system etc etc. If I asked you where would you go for a great deal on car loans you'd know, but in your host country ??

Also when you switch on the tele and you are confronted with a prestenter, you won't have a clue about that person, whereas even if I said to you 'Noel Edmonds' and you thought about it, you would probably come up with lots of facts about this person after 5 mins (Swapshop, Radio1 dj, entrepreneur, owns fast cars/flies helicoptors, TVAddicts etc etc etc etc). In a foreign country - nothing !!! This may sound like a small point, but believe me you *really* miss being in the dark like this - you NEED the background.

And finally, yes speaking a foreign language can be fun at first and I speak brilliant French (for example), but even my 'brilliant' French is not good enough !! You miss talking in your own language and your mouth physically gets tired of trying to make these new sounds that you haven't spent a whole lifetime learning ! Eventually you even start to speak worse rather than better. And even with brilliant language skills there are and always will be pockets of subject matter where you will simply not know the vocabulary (and that's just basic communicating, not reciting poems or appreciating the emotions in the lyrics of a song).

Sorry way off topic, just pointing out my experiences.

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OK SoldupandRentingAbroad but where's your sense of adventure. Us Brits will always search out cheap fags, booze and lots of sun- wherever it's on offer. Foreign language - forget it. Everyone worth talking to speaks English - don't they?

Couple all that with our inherent ability to buy property wisely around the globe with the slimest of facts - it's what made us the country we are ...... isn't it?

Mind you if I believed half of what is on this forum a nice £80k house overlooking the Med in Turkey seems a very cosy option

Yes Turkey is corrupt (although the government is taking a number of actions to curb the worse excesses) but with our own £x billion "black" economy maybe it should be a case of "those in glass houses shouldn't......................"

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Hello,

I have invested in Turkey and have been living and working overseas for many years - I now run my own independent overseas property business to offer a genuine & useful service to people investing and/or moving overseas - in my opinion, even though we work with developers worldwide, Turkey is still proving to offer some of the best returns in the overseas property market - we offer returns of 30% upwards in time scales of just 8 months to a year. Like everywhere, location is important as is quality. I also always recomend an independent english speaking lawyer as many of the horror stories still classically come from people who have trusted local agents to take care of the paperwork!

If you would like some information on the types of returns you can achieve and/or guaranteed rental options please feel free to email me to [ Removed by Moderator ]

just a little question but according to the turkish constitution is it legal for non turkish residents to own property in turkey.

Edited by lowrentyieldmakessense(honest!)

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  • 301 Brexit, House prices and Summer 2020

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