Foreign buyers ‘investing in Turkey’
Investors with property in Turkey are managing to escape the worst effects of the global economic crisis, it has been claimed.
Turkish newspaper Hurriyet reports that many people in Europe now view the country as a safer alternative to the volatile property markets of traditional investment destinations.
Muslum Yildirim of Turkish real estate foundation Kusemder told the publication that the economic downturn has actually boosted demand for property purchases in some areas of the country.
“Despite the crisis, those who have money invest in Turkish property … The crisis is deepening in Europe and that will increase demand in Turkey,” he explained.
Mr Yildirim also suggested that the lower cost of living available in Turkey may be attracting more retirees to invest in property there.
Estimating that the average pensioner will have a budget on “1,000 euros per month”, he said: “It is hard to live on this money in Europe while it is quite a big amount in Turkey’s economic conditions.”
Turkey was recently described as “an incredibly exciting market” for property investors by Shelter Offshore.
Source–www.ready2invest.co.uk
Investment Opportunity
Property investing in Istanbul
Even during the global economic crisis, according to the article, property developers have been raking in high volume property sales from their residential property developments
Turkish real estate has become easier to purchase as property prices have effectively dropped as low as 50 percent in the suburbs of Istanbul; and as low as 20 percent for a sea view Bosphorus flat in Beyoğlu. Local Turkish buyers are not borrowing from banks but rather from family and friends to own property in Turkey. In addition to price drops, builders are offering other property buying incentives such as ideal rental guarantees in rapidly developing suburbs of Istanbul; interest free, and long term payment plans are just a few to mention.
There are many opportunities to buy into properties in Turkey for private investors; in Istanbul many construction companies are creating brand new residential communities that are certain to represent a positive investment. Along the southern Turkish coastline developers are obligating to the development of spectacular resorts in huge demand from tourists and second home investors. Private investors can consider aiming for investment property to rent out to the tourism market; alternatively even buying property in Turkey with plans to resell to the growing base of overseas buyers seeking individual properties in Turkey.
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Introduction and development of new ’satellite districts’ is the future residential heartlands of Istanbul, new developments are being built which currently offer some outstanding investment opportunities at “early release” prices.
The execution of urban transformation projects in a variety of Istanbul districts has also encouraged strong property sales; as these transformations are increasing the value of real estate in those particular areas.
In addition to the attractive purchase prices of property in Istanbul comes the higher rental rates. You can pay the same amount of money for a property in Istanbul and another major city in Turkey; but receive substantially higher rent for your property in Istanbul than the same sales priced property in another major city; and in foreign currency (USD, Euro, Japanese Yen) rather than the Turkish Lira. However, Istanbul is very well known as giving one of the best investment opportunities in Europe as the top performing hotspot for overall growth and for capital returns.
Property investment in Turkey is bursting with choice, as an investor has a choice of location, investment approach, target market and undeniably an unsurpassed diversity of property advantages.
Golden years of real estate are coming back
ISTANBUL - Interest in investing in Turkey’s property market has intensified because the industry has been averaging 40 percent returns while the rest of Europe floats around 5 percent growth. It is now easier to purchase as property prices have dropped
The last of the golden years for a large property investment boom in Turkey began in 2003 and carried on quite strong until 2005.
The last preparation year was 2002 when a new law came out, and foreign nationals were allowed to purchase real estate in Turkey in their own name. Well be prepared. The year to get ready for the next big property boom is 2009.
According to a representative of Garanti GYO, interest in Turkey investment property has intensified because the market sector has been averaging 40 percent returns while the rest of Europe floats around 5 percent growth. Obviously these levels of potential profitability are of great interest to corporate investors and it is worth taking into consideration that Dubai Holding’s commitment to the Turkish property market represents their largest international financial investment, which just goes to show how certain they are of the large profit margins in Turkey.
The Turkish Property Taxation
Ocak 15, 2009 by admin
Filed under Property Guides
Buildings and land owned in Turkey are subject to real estate tax at the following rates:
• Residences 0.1%
• Other buildings 0.2%
• Land 0.1%
• Vacant land (but allocated for construction purposes) 0.3%
• Farming lands 0%
Income Tax (such as Rental Income)
There is no income tax unless you are Turkish Resident.
Inheritance and Gift Tax
Property acquired as a gift or through inheritance is subject to taxes of between 1% and 30% of the valuation. Tax paid in another country on inherited property is deducted from the taxable value of the asset. Inheritance tax is payable over the period of three years and in two installments per year.
Environmental Tax
This tax is levied in staged payments and is charged depending on the location of the property. Environmental Tax contributes towards the financing of certain services such as rubbish disposal.
Turkey Property Tax
Turkey Property Buyers and Sellers Tax Approximately 1.5% is paid by both parties based on the declared price of the property. This is tax that is paid at the time of title deed conversion over to the buyer’s name, which could take several months after completion. In practice, sellers push this liability onto the buyers and buyers pay 3%.
Government tax Approximately £140 p.a
Community tax Approximately £12 paid yearly for local services.
Property tax Approximately 0,5% based on the declared value of property, paid yearly
Woodland Regency From £72,000
Ocak 14, 2009 by admin
Filed under Bodrum Properties
Woodland Regency Development Located only 2 miles (3km) from Bodrum Town Centre and the nearby sandy beaches of Bitez and Gumbet, Woodland Regency is ideally situated for all year living. Surrounded with evergreen pine and olive trees, Woodland Regency has unobstructed mountain views and is only a short walking distance to markets, restaurants and public transportation.
Woodland Regency is set on 5.4 acres of land (21,800m2) consisting of 20 two storey buildings for a total of 62 units of exquisitely finished 1 and 2 bedroom apartments and 3 bedroom, 2 bathroom semi-detached villas. Due for completion in June 2009
- Excellent investment opportunity
- Set within 5.4 acres of woodland
- Exclusive Club House and Spa
- 5 minutes from Bodrum Town Centre and beaches
- Finished to the highest standards