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.

Investment Facts About Early Buying

Early buying in prospective European Union member countries is a sure-fire long-term investment, experts say. The path to EU accession leads to better regulated economies and more stable investment environments. Membership will bring economic indicators closer to EU standards and make travel easier and more secure in the area. Changes in both the legal and economic structure of the countries, along with a marked social and political opening to foreigners, is likely to smooth investment processes.

Experts say it is not necessary that the country be accepted into the European union. The countries then adopt the euro as their currency and shift their banking structures to the European model. These steps reduce risk and increases returns, making property a good long-term investment. Investors say the key is not when the Eastern countries join the EU, but how quickly they bring their economies into line with EU economic practices. Knowledgeable investors take note of three important trends in of European convergence: EU accession, macroeconomic alignment, and the strong growth potential of consumer markets. Changes to property laws allow more property to be bought and a much more favorable investment climate for those who look to purchase property abroad, both for living and renting. EU aid funds lead to increase in infrastructure, facilitating capital development

In early buying situations, the chances for off-plan buying are increased, as well. Buying off-plan, or investing in property that has not yet been or is being constructing, promises to maximize profit. Buyers purchase units for a fraction of their finished prices, and often pay only a deposit up front. Those who enter on the ground-floor stages stand to gain the most, as unit prices increase while construction continues.

Strategic foreign direct investment has a doubly beneficial effect on developing countries. It provides them with funding for the resources they need to develop, as well as attracting more development as these resources are used to increase stability and construct more investment opportunities. In this regard, the more foreign direct investment countries receive, the more likely those investments are to become beneficial to investors and the countries involved. Also, the enterprises that attract investment often provide the essentials that attract tourists, which once again augments and multiplies the benefits of investments. Nations with increasing FDI are candidates for more trade relationships, as well. This offers more goods and services to the industrializing nations. Their populations have more propensities to be educated, prosperous and accustomed to tourism. The middle class grows in these countries, giving domestic and foreign businesses higher exposures to consumers and more ties with the evolving world capitalist culture. This increases stability and interdependency.

As nations travel on down the path toward EU membership, prices for investment increase. Investors do best to get in early and reap the benefits that are sure to follow. Relatively low when the accession process begins deliberations, property prices rise as infrastructure and financial security grow. While the long-term benefits are expected to be plentiful, it may take a little patience to watch seed investments grow and blossom into the fruit of profits.

Investment Property, Turkey Forecast

Investment property in Turkey today is believed to have a bright future. Turkish property today is valued around 50% more than its price half a decade ago. It is speculated by economic forecasters that in the following two to three years, such assessment would appreciate to 100%.
There are a number of political and economic reasons why the value of Turkish is on the rise. The first is the country’s recent membership in the EU. Second, is its economic advancement, making its economy reach the highest peak it has been for over a decade. Third are its advantageous mortgage in Turkey policies for foreigners. Topping that is the country’s natural aesthetics and historical worth.
The best property for investment in Turkey is on the tourism sector, particularly the resorts. For several years now, Turkey has been experiencing a rapid increase of tourism that since 2004, the rate has increased twice to todays P25 million tourists, more or less. Much of these are tourists who flock the beaches of the country and majority of them are retirees. The real property along the beaches of Turkey has now become the most profitable areas for tourism.
There is no wonder to the fact that Turkey has become a tourist magnet. Other than being a melting pot of European and Asian culture, it has also natural grandeurs to offer. The country is proud of its stunning beaches, hot temperature and other scenic spots. There are still lots of undiscovered areas and beaches that may be good prospects as investment property in Turkey for exploitation and development into formidable holiday vacation getaways.
Other than such reasons, what makes Turkey more attractive to vacationers especially to retirees is that the cost of living in the country is comparatively lower than any European country.
It is predicted that in the next 10 years, the shores of Turkey will be a major international holiday getaway hit in the map. So, investment property in Turkey poses as a luring asset for prospect investors all over the world.

Mortgage for Foreigners in Turkey

Do you know that today; mortgages for foreigners in Turkey are liberal and very encouraging to investors?
Turkey is gearing towards liberalization of its national policies. Among the major advances in Turkey is the loosening of the country’s policies on ownership of foreigners of real property. As a result of such amendment, more and more foreigners coming from nearby European countries and the rest of the world invest in Turkish property.
There is a variety of means to own property in Turkey, use of private funds, a simple personal loan and loan with mortgage of property. Of these three, mortgage Turkey is the most efficient and convenient means.
Because of the demand for Turkish property, the country has tailored its mortgage laws to cater the growing industry of real estate sale to foreigners in order to encourage it. Today, the presence of a strong set of laws on mortgage makes Turkey a predictably good property investment on the map.
Most banks have a package or plan of mortgage for foreigners in Turkey, who are interested in buying property. In fact, even nationals from Great Britain and the other Scandinavian countries have chosen this scheme in order to facilitate easier ownership over the property since it is more expedient.
Just as well, applying for a contract of mortgage in Turkey is made more practical for foreigners seeking to own property. There are only four major requirements – a valid passport, proof of income, tax returns in the preceding year, and credit and mortgage statuses in the country of origin. After the mortgage is approved, the loan is released to be paid to the sellers of the property and title over the mortgaged property is issued in the name of the mortgagor.
In addition, it is notable that Turkey, in encouraging foreign ownership of property, has not set a maximum amount for mortgage to foreigners but has only set a considerable minimum of 30,000 Euros as floor mortgage price. In addition, foreign mortgagees are allowed to apply up to 65% of the value of the property as loan to finance the purchase.
The made-easy mortgage for foreigners in Turkey and the non-rigorous procedure in its application marks a market tendency that will bolster the increase of demand for real estate in Turkey.

The Future of Turkey Property

Turkey property is said to have one of the most promising future in the years to come. Its recent membership in the EU and a well-maintained economy are keys to the rise of demand for real property in the country. As of the present, property market in Turkey is only beginning to rise.
There is so much on Turkey property than is known as of the present. Being the 37th largest country in the world, it offers a lengthy land mass to exploit. Of the possible investment property, however, vacation properties are predicted to be the most valuable in two to three years. As proof to that, only last year, 25 million tourists have crowded the open pristine beaches of the country, searching for the sun and sea.
The beaches of Turkey are stunning and are believed to be one of the most beautiful in Europe. The country has a wide seashore line since three seas encircle it. To the west, located is the Aegean Sea; to the south, the Mediterranean Sea; and to the north, the Black Sea. Much of these properties are still undeveloped and undiscovered yet. It then makes Turkey, a huge market for vacation resorts to cater to the increasing number of tourists that flock the country.

What makes the country more luring to foreigners is the fact that it has hot, dry summers of a Mediterranean temperate climate. In fact, compared to other EU destinations, it offers more hours of sunshine in a year. It is more attractive to retirees since the cost of living in Turkey is comparatively low if compared to its neighbors.
There is a bright future ahead for Turkish property especially its Riviera since more and more Europeans become enthusiastic to visit the country in line with its political and economic acceleration. As of the present, real estate property and imposable taxes in Turkey is still comparatively lower than those sold in any of its neighboring European countries.
The country is expected to be one of the top holiday vacation spots in the map that the value of the assessed Turkey property is expected to increase more than 100% its value as of the present. So, in the next ten years or so, Turkey investment property is predicted to be one of the most profitable investments in EU real estate.