Kusadasi Turkey | Turkey Property Investment

We have long known that volatility in the global economy, combined with the eurozone debt crisis and sluggish growth in most established markets was driving growth in investment to Turkey and other emerging markets. But few would have believed it would be driving quite as much growth as we now know.

According to the latest data from the Central Bank of the Republic of Turkey (CBRT), Foreign Direct Investment in the first half of this year increased by 325% compared to the same period last year. With the Eurozone debt crisis only getting worse, and even the US once again causing global instability, one can only foresee continued growth in Turkey investment property.

The rise was fuelled by a 388% growth in investments from European nations, a 140% increase in investment from North America, and a 329% growth in investment from the far east, all of which more than made up for the disappointing 43.3% drop in investments from near and middle eastern nations — this is hardly surprising given the effects of the Arab Spring, but disappointing none the less.

Of the total $6.9 billion in investment, $5.7 billion was invested in the services sector, and the other $1.1 billion went to the manufacturing sector.

In other news Turkstat revealed a further drop in unemployment, which fell 1.6 points in May compared to last year, leaving the total unemployment figure at 9.4%.

The mortgage sector in Turkey for Foreigners.

The mortgage sector, which grows up rapidly all around the world, also entered in a serious improvement process in Turkey in March 2007 with the issuance of the "Mortgage Law". The effect of the law is that the demand of purchasing property increased and the mortgage sector went a step further.

Consumer loans in Turkey also increased in parallel with the growth of the mortgage loans. The total consumer loans' volume reached 172.693 billion TL in the middle of February 2011; while it was 91.353 billion TL in 2007 and it has a 89,04 % growth rate. Comparatively, in 2007 the mortgage loans, that had a volume of 30.823 billion TL, formed 33,74% of the total consumer loans and in the middle of February 2011; the mortgage loans had a 92 % growth rate, formed 34,27% of the total consumer loan sand its volume ascended to 59.188 billion TL.

With the growth of the demand of the mortgage loans, Banks started to play an active role. The volume of the mortgage loans of the public, private and foreign banks, which are categorized according to their capital, was 42.543 billion TL in 2009 and in the middle of February 2011, it reached to 59.188 billion TL. Between 2009 and 2011, the volume of the mortgage loans raised 16.645 billion TL and the growth rate became 39,13%. In the middle of February 2011, the public banks' mortgage loans volume was 17.409 billion TL, while it was 11.921 billion TL in 2009 and the growth rate was 46,04%. Furthermore, the volume of the private banks' mortgage loans was 19.769 billion TL in 2009 and it increased 43,06 %and became 28.281 billion TL. In addition to that, the growth rate of the mortgage loans in foreign banks was 24,31 % and the volume raised to 13.493 billion TL from 10.854 billion TL between the years 2009 and 2011.

The new regulations also gave ability to start residential financing companies like correspondent lenders and financing organizations.

DD mortgage - A joint venture of one of Turkey's biggest corporations Dogan Holding and one of the world's biggest banks Deutsche Bank, was established on 2008 with an approval from BRSA ( Banking Regulation and Supervision Agency). DD Mortgage's vision is to be one of the leading home financing corporations with high technology standards and a team of professionals with extended experience on mortgage products.

DD Mortgage creates values on mortgage industry with innovative products, flexible procedures and technological infrastructure combined with experienced employees. DD mortgage is also working on secondary market products in order to improve quality and increase resources that are available for residential home loans industry.
Author Resource:- Article written by Leading Mortgage DD company in Turkey, providing appropriate mortgage solutions such as Konut Kredisi with the help of specialized credit portfolio managers.

Kusadasi Turkey

Kusadasi, Beautiful City

Kusadasi was once a simple fishing village. However it has now become a Beautiful city situated on the Aegean coast. Kusadasi is without doubt a great place to stay as it is ideally located to explore the sights that Turkey has to offer.

Close to the interesting historical city of Ephesus. A cosmopolitan atmosphere prevades throughout the city and the busy harbour is packed with music bars, restaurants, bazaars, great shops and cafes.You can take a taxi from the apartment.

There are also two beaches to choose from close at hand.

The advantages of buying new property

Off-plan property investment is one of the easiest and most profitable methods maximizing gains in the real estate market. Buying off-plan, or before new property has been completely constructed, offers some of the best finance options in the market. Investors can purchase property at below market value price, allowing for greater capital appreciation. The earlier investors buy into a project, the greater the potential returns. Using this plan as a buy-to-let plan is especially profitable in tourist areas.

Off Plan investments give investors the opportunity to property buy at the lowest price and achieve maximum return on investment. Developers sell off-plan units at excellent prices to buyers who, while they have not seen the physical property, use the location, artistic impressions, diagrams and computer simulations to envision the outcome of their investment. Eventually there is normally a completed show home available for viewing. Developers gain a decrease in the need for bank loans and assurance their property will be invested in. Investors benefit from the off-plan finance structure, which usually only initially demands a deposit in terms of approximately 30 percent of the property value. The balance is due upon completion and can in most cases be financed by a mortgage. Investors are strongly encouraged to purchase off-plan early to ensure competitive prices and availability of the best units. Price increases as the development matures, and the more units sell, the higher the price for the remaining units grows. Investment value increases before the structure is even completed.

The off-plan property buying option is increasing in popularity among investors who want to make a good profit out of their investment. By undertaking a small amount of risk, the possibility for profit is heightened exponentially. Retaining the property for an extended amount of time offers high rental income possibilities as well as appreciation in the property’s value. By solely purchasing a unit before construction, investors can turn around and sell their property after the complex is completed for a sizeable sum. Depending on the size of the edifice, construction can take up to 24 months to be completed. After paying the deposit, purchase price can often be paid in monthly installments rather than in one lump sum.

Off-plan property does take time to be completed. However, this is only a problem if the property is needed for immediate use. Off-plan prices are less than a resale or new property, and what they require in patience, they make up for in financial returns.

Off-plan property tends to be most plentiful in developing tourist areas. Resort cities or areas that are just experiencing growth in commerce and tourist traffic are highly valued areas of off-plan investment. Here, property prices tend to be lower, allowing the developer to operate more inexpensively. Investors, in turn, can gain from a little fore-sight. While the purchase prices are inexpensive, they hold the possibility for profit in terms of rental, future sale and a host of other possibilities.




Hasan Deniz
Property Investment Consultant
investors[at]kusadasiproperty[dot]biz

Foreigns Purchasing Property in Turkey

Turkey is on one of the fastest growing global emerging markets. It’s prospective European Union membership has opened the floodgates of foreigners interested in buying property in Turkey. The increase in Turkey’s political and economic stability is likely to add the multitude of world travelers that flock to the country’s pristine beaches and rich ancient cultural sites.

Turkey’s impending EU membership provides growth potential that will certainly boost the prices of real estate there in the future. Buying property now can lead to gains as property prices there continue to increase. The property prices in Turkey are significantly lower than other European destinations and still at value prices. Taxes are comparatively low in the country, as well. Property investment experts Amberlamb rated Turkey’s property sector as one of the top five expected European market performers in capital terms of capital appreciation in 2007. Both residential and vacation properties are available and profitable purchases for foreign nationals in Turkey. Additionally, housing availability trails demand in the country. Since Turkish parliament ratified a law in January 2006 allowing foreign nationals to purchase property, foreign nationals are afforded the same property ownership rights as Turkish citizens. The reciprocity clause also must be met for foreign nationals to purchase property in Turkey. The clause states citizens of countries whose governments allow Turkish nationals to purchase real estate in their country are allowed to purchase real estate in Turkey. Most Western countries meet this standard. Also, there are no restrictions on selling and reselling, so recently bought property can quickly be sold.
The Turkish property market is emerging rapidly and offers the investor a variety of possibilities to maximize gains on property investments. Property prices in Turkey are dependent upon where the property is located, the type of material used in construction and the property’s architectural elements. Other value-determining aspects include how easy it is to reach the property, its proximity to an airport, the region’s economic activities and availability of nearby services.
There are some restrictions on where foreign nationals may purchase property in Turkey. They may not purchase property in Turkey’s strategic military and security zones. Foreigners are also not allowed to own property outside the center of a village because in case the area has not been available for purchase or it may belong to the Ministry of Forest. Clearance from military authorities can take 6-12 weeks to process.
Along with the price of the property, several other legal fees must be taken into account when purchasing property in Turkey. First, there is a 10 percent deposit to be paid to reserve a property. Then the real estate agency fee is fixed rate at 3 percent of the purchase price from the buyer. There are also fees to be paid to the legal notary, to a sworn translator and for photographs. Additionally, there are purchase and land registration fees, as well as compulsory earthquake insurance. Finally, a 1.5 percent duty both for the purchaser and seller must be paid. In addition, there is an annual property tax, collected by the local government at the rate of 0.1 percent for houses and 0.3 percent for developed lands.