Before you buy Turkish Property..

Kusadasi Turkey | Turkey Property Investment

2011-08-23T14:18:00.002+03:00

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.

2011-05-21T00:27:00.001+03:00

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

2011-04-16T16:35:00.000+03:00

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

2008-05-17T17:23:00.010+03:00

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

2008-05-17T17:23:00.008+03:00

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

2008-05-17T17:23:00.006+03:00

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.

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

Investment Property, Turkey Forecast

2008-05-17T17:22:00.003+03:00

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

2008-05-17T17:22:00.001+03:00

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

2008-05-17T17:21:00.000+03:00

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.

Property in Turkey, Investment?

2006-12-08T15:11:00.002+02:00

There has been a great deal of discussion in the media about the rate at which Turkey is developing economically and how it’s becoming a tourism destination of note, as a result a growing number of individual and institutional real estate investors are starting to ask ‘is buying property in Turkey a good investment?’
To assist with investors’ due diligence and ongoing research into the viability of Turkey as a property investment destination, here’s our overview of the property investment potential in Turkey and the five main factors driving the market currently.
Firstly the long drawn out discussions regarding Turkey’s bid for EU entry finally resulted in membership negotiations being symbolically and officially opened on the 3rd of October 2005.
The opening of negotiations followed three years of Turkey judiciously adopting EU related reforms to align its country strategically with its European neighbours. The political, social and economic reform process is ongoing but Turkey has an arduous task to win round all the European nations and to be accepted for accession by circa 2015... however the country and its government are committed to the process.
As soon as negotiations were officially opened Turkey welcomed a strong and sustained wave of inward foreign direct investment from GCC nations keen to cement ties with Turkey as the nation that represents the ultimate unique fusion between Europe and the Middle East. Money has come from across the Middle East, most notably Dubai based real estate development companies such as Emaar and Dubai Holding have already ploughed and further committed billions of US dollars to significant commercial and residential property projects in Istanbul.
The commitment of these nations to the economic development of Turkey bodes incredibly well for the long term financial success of the nation and boosts the attraction of property investment in Turkey.
Secondly the tourism market in Turkey has been rapidly growing and developing particularly over the past three years. So much so that at the Arabian Hotel Investment Conference last weekend the senior vice-president of the Economist Intelligence Unit’s Corporate Network Daniel Thorniley declared Turkey to be the new ‘hot’ market for tourism in the Arab world - ahead in terms of potential for growth and expansion of even rivals such as Dubai and Abu Dhabi.
Tourism numbers rose by in excess of 20% in Turkey last year and 2006 projections from the Turkish tourism minister Atilla Koc are for visitor numbers to top the twenty one million mark. The first quarter of 2006 recorded growth in the tourism sector despite Turkey suffering a negative reaction following the discovery of avian flu in the country, and the number of visitors booked in already for the summer season is higher than 2005.
Going forward Turkey is rapidly developing key infrastructure projects along its southern Riviera region. New road networks and transportation links are being developed, an increased number of flight operators are now flying to Turkish airports from across Europe and North America and the nation is becoming more accessible and more desirable thereby increasing its potential to grow as a tourism hub in the future.
Thirdly property in Turkey is already booming in terms of both demand and price increases in Istanbul and along the southern coastline in towns and cities such as Side, Fethiye, Altinkum, Alanya, Marmaris, Kusadasi and Bodrum. Istanbul recorded up to 85% growth in residential property prices last year and according to local estate agents working in the residential property market in the city, 2006 could see increases anywhere from 80% - 120%. Property price increases along the Turkish Riviera have been driven by a growing demand for holiday homes and apartments and individual investment properties. Investors from the UK, Ireland, Germany and Canada are especially keen on properties with good communal facilities and close to local amenities which they can buy to let out to the growing tourism market.
Fourthly Turkey’s expanding economy is leading to a growing number of international companies establishing and expanding manufacturing and retail bases in the country. This is leading to an increase in the numbers of jobs available, a growth in GDP and an increase in demand for commercial property in Turkey which presents a potential investor with another market sector to explore.
Washington-based management consulting firm A.T. Kearney recently named Turkey one of the most attractive markets in the world for mass retailers and food retailers as it is a country with a strong GDP, a massive and expanding population and a nation with a fragmented market place meaning that there is huge potential for growth and expansion in Turkey which creates opportunity that will likely result in strong levels of sustained foreign direct investment.
This would have the effect of pushing up demand for commercial property in Turkey and already institutional investors from the world of finance have been examining the commercial property market in Istanbul with a view to investment. Financial institutions such as Morgan Stanley, UBS, Deutsche Bank and Credit Suisse have been actively researching Istanbul’s commercial sector while Dubai Holding have already committed five billion US dollars to the development of commercial property projects in Istanbul.
Finally there exists in Turkey a massive local demand for residential real estate. The Turkish government are committed to addressing the huge housing deficit that exists and also to raising the standards of living that many Turkish families endure. Over the long term this may represent an alternative investment opportunity for companies wishing to work with the Turkish government on public housing related projects. According to a recent article from Reuters there is a deficit of 600,000 houses in Turkey’s main cities alone which gives an indication of the scope for development in this emerging nation.
So, is buying property in Turkey a good investment? Many people seem to think so and the economic and political developments occurring in Turkey right now seem to support the long term investment ambitions of individual and institutional investors from around the world.

Source:Amberlamb

Turkey Property Investment Facts

2006-12-08T15:11:00.000+02:00

When it comes to finding the best property investment potential in the world all eyes have turned to Turkey since the country began talks towards achieving EU accession and the Turkish economy officially became a market economy.
The future prospects for Turkey are very positive indeed and this translates well and directly to the Turkish property market where investor interest has surged throughout 2005 and where property prices are beginning to creep up fast.
While property prices in parts of Turkey may be about 10 years behind those in Spain for example, this trend is starting to change because the levels of interest in Turkish property have surged particularly along the Riviera region in southern Turkey. And since it was announced that Turkey is now on target for EU accession investor confidence in Turkey has reached an all time high.
Turkey has long dreamed of a place in Europe and has made a concerted effort in recent years to change legislation, practices and regimes to align the country more with its European neighbours. Cleary this has worked to Turkey’s political advantage but it has also worked well economically for the country. As Turkish resorts begin to feel more Southern European in their flavour so their attraction intensifies with European visitors - and tourism numbers in Turkey have increased substantially in the past five years as a direct result.
The Turkish tourism board are now spending a lot of money promoting the resorts along Turkey’s Mediterranean coast and as a result tourism, second home, holiday home and retirement home interest in these parts of Turkey have surged. For an investor this is highly encouraging. Those buying to let have more tourists interested in renting out their properties during Turkey’s long summer season - and as all investors will tell you, short term tourist lets can be highly lucrative. Those buying off plan at pre-construction prices are likely to find strong interest in the resale market for their properties when they come to completion from those who want to buy a holiday or retirement home in Turkey.
As the resorts in Turkey come up fast and more money is spent on improving roads, airports and general infrastructure so private investment is being poured into the creation of resorts, spas, golf courses and superior tourist facilities.
In Belek for example five golf courses have already been completed and five more are in the planning and creation stages. Money can be made through investing in such ventures and money can be made from the commercial side of property investment in Turkey by targeting tourist accommodation in the most popular resorts for example.
Investors looking to diversify away from Turkey’s hugely popular coastal regions are currently focused on Istanbul and Ankara where the local economies are vastly improved and where domestic purchasing power is strongest in Turkey. Here there is demand for apartments to let and commercial and office space to lease. Elsewhere the property investment opportunities are less well defined but as Turkey has already proven, given a little time and a great deal of personal and governmental effort the Turkish people can transform their economy and country and this can only bode well for the future prospects for all investors in Turkey and for the Turkish people as well.

Source:Amberlamb

Turkey Property Buying Process

2006-12-08T15:09:00.000+02:00

The principles relating to the ownership of property in Turkey are laid out in Article 35 of the Turkish constitution and the laws relating to the foreign freehold ownership of land or Turkey real estate have recently been revised and relaxed meaning that the property buying process in Turkey today has been simplified.
An investor wishing to enter the Turkish property market needs to be aware of certain restrictions that apply to the foreign ownership of properties or land of a given type in a particular location; furthermore it’s imperative that detailed and thorough title searches are carried out by an investor’s lawyer because problems have been known to arise with vendor’s not having the right to sell property for example.
Basically the process to purchase investment property in Turkey is straightforward if an investor is aware of the potential pitfalls and the restrictions that apply. This guide to the property buying process in Turkey highlights the main issues property buyers should bear in mind; but nothing can replace good legal advice and the first thing an investor should do before even making an offer on a property is find a local real estate lawyer to represent their interests.
In Turkey the sale of property to overseas buyers depends on the principles of reciprocity - if the country from which the investor heralds grants the theoretical right of freehold ownership of property to a Turkish citizen then the overseas buyer will be given permission to buy property in Turkey.
Land in Turkey is allocated a specific function according to the zoning schemes of the nearest town or village and if a piece of land is deemed to be agricultural for example and is offered for sale to an investor for development, certain issues will present themselves because the buyer’s intended use for the land does not match its defined function. Therefore it is imperative that a solicitor checks whether any restrictions exist in relation to any parcels of land a property investor is interested in buying for example.
Other restrictions that exist relate to land or property that is physically located outside the designated centre of the nearest town or village; the Village Act stipulates that foreigners are not permitted to own such real estate. And the final main restriction that can limit a property investor’s choices in Turkey is the restriction surrounding military land. Overseas buyers cannot buy land or property in the vicinity of military land.
If an investor is in doubt over any of these issues or is concerned about any real estate they are interested in buying in relation to these restrictions they should not even submit an offer to purchase before consulting their lawyer.
Once a property has been identified by the property investor as fulfilling all their investment criteria, an offer to purchase can be submitted to the vendor and upon acceptance it’s usual for the buyer to sign a conditional preliminary contract and pay a deposit of up to 10% of the property’s underlying price. The contract is mainly conditional to the completion of satisfactory title deed searches, and if the purchaser pulls out of the contract for any reason than those laid out under the terms of the contract then they forfeit their deposit. Likewise if the vendor withdraws from the sale they are expected to compensate the disappointed investor. It’s wise to have all these stipulations detailed in the preliminary contract, and any promises that have been made by the developer or vendor that are binding for the sale should also be included in any and all contracts entered into.
It’s imperative that the property investor’s solicitor do thorough searches of the title to the land or property to ensure that the vendor has the legal right to sell and that there are no outstanding debts or legal problems with the property. If the investor is buying an older property they should have a full structural survey done as well - especially if buying in an earthquake prone area as some structural issues can exist that are invisible to the naked eye.
When all has been proved to be in order with the investment property in Turkey the final contract is signed in front of a public notary by the vendor and the purchaser (or lawyers with powers of attorney), and the sale is completed when the balance is transferred to the vendor. The buyer’s solicitor will apply to have the title transferred and for the new title deeds to be delivered in the name of the property investor. This process can take a few months and in the meantime the majority of related taxes and fees will be due.
Finally, an approximation of the additional fees and taxes would include lawyer and notary fees, buyer’s tax of 1.5% of the property’s value, government and community taxes, insurance, property management charges and utility connection fees.

Source:Amberlamb

Turkey for Investment Property Buyers

2006-12-08T14:59:00.000+02:00

The attraction of Turkey from a property investor’s perspective just got even better. In October 2005 when Turkey agreed to enter into talks with the European Union towards the country’s EU membership, the Crown Prince of Dubai immediately invested five billion US dollars into Turkey real estate sector giving overseas investors a boost of confidence in the country. Many second and holiday home owners and retirees had already begun to explore the delights of Turkey particularly along the country’s southern coastline, but now focus has broadened and appeal for property in Turkey is expanding countrywide.
Over the past ten years Turkey has undertaken many major reforms designed to align the country with her European neighbours and form strong economic links and business relationships with the West whilst retaining an important bond with the Middle East. The reforms have been successful and have resulted in Turkey beginning talks with the EU. The reforms have also resulted in Turkey achieving a growing worldwide appeal and the country has become a hot tourist destination with the majority of visitors either attracted to the vibrant city of Istanbul or the long meandering and inimitably beautiful Mediterranean coastline.
Both of these areas of Turkey now have strong returning and highly attractive real estate sectors which are already of interest to many foreign investors.
But Turkey is a vast and unique nation offering investors an unrivalled range of opportunities - Turkey spans the cultural and geographic divides between Europe, Asia and the Middle East and it has over seven thousand kilometres of stunning coastline on the Mediterranean, Aegean and Black Seas. It has highly desirable resort towns, clean and unspoilt coastlines, vibrant and exciting cities, world class sun and ski facilities and amenities and a laid back charm and exotic elegance.
Turkey also enjoys a strong and dynamic, multidimensional economy that embraces modern market forces whilst retaining a large and traditional agriculture sector - but the Turkish economy lacks sustained and significant foreign direct investment...
One of the fundamental keys to Turkey’s successful transition to full EU membership is its ability to attract and retain FDI. It has set itself a target of attracting 1.2 trillion dollars from Gulf States initially and therefore the Crown Prince of Dubai’s immediate financial commitment to the country’s real estate sector not only gave property investors faith in Turkey it gave other nations faith in the country as a whole and should lead to the further promotion of Turkey and an increasing flow of foreign direct investment.
This also means that property investors who commit to Turkey can have confidence in their welcome and acceptance.
If Turkey can get the FDI she needs and attain full EU membership she will become one of the most important and influential countries in the world as she will strategically and politically represent a bridge between the Middle East and Europe. The future prospects for Turkey and her economy are therefore very positive indeed over the medium to long term making the country an exciting investment opportunity for the buyer seeking significant returns over the same term period.

Source:Amberlamb