Have you ever considered investing money in Turkey? It is slowly growing to become a very popular investment destination, for the country has a very high growth potential. Currently, property prices are at an all time low, while the Turkish economy is showing signs of economic growth, having a strong economy. Turkey is also slated to be included inside the EU, sometime in the near future, thus having a high level of economic potential.
Investing in the stock market is easy, but far more dangerous when compared to the property market. Unless you are a seasoned stock broker, it is very difficult to make it big in the stock market. Property usually grows at a slower rate than the stock market, but property prices are always on the increase, and it rarely ever decreases in price. Real estate agents will often tell you to "Buy land, they aren't making any more". Nothing could be truer. Also stock markets are known to be quite volatile, where as property markets are known to be quite stable, and a safe alternative. Many investment funds are now investing in property to make their profits, even though there are no guarantees that the property will actually increase in value in the near future.
This is perhaps the best time to consider investing in Turkey for property, because Turkey has a vibrant economy which is all set to take off when Turkey joins the EU. Joining the EU will imply that the economy will take off in a big way with a lot of foreign investments coming in. Turkey also has a fast growing tourism industry which will enable the economy to grow faster, generating a greater demand for property, which will in turn drive up prices for property, increasing its valuation.
Turkey is also an excellent holiday destination with beautiful beaches and superb climatic conditions, far superior to most of the popular European holiday hotspots. This makes investing in Turkey all the more lucrative.
Turkish property is also priced very competitively and there are indications that the Turkish property market will appreciate considerably as flights to and from European destinations increase, along with mortgages and EU investments. However, Turkish property is not wholly reliant on foreign investment and it will continue to face growth based on internal demand as well which will see a spurt, once Turkey joins the EU.
To sum up the strongest arguments for Turkish property investment:
* Potential for strong economic growth, leading to high returns on property. It is highly regarded by the WTO. * Natural beauty along with an excellent climate resulting in a popular holiday destination. * Turkish summers are longer with more daytime, thus having more productive hours than other European countries. * A large population helps to keep the economy strong, and does not make it reliant on foreign investment. * The population grows at approximately 2% per annum, and 70% of the population is younger than 30, which gives it a capable workforce and a strong local economy. * A popular tourist destination allows possibilities of buying and letting out. * Long summers, a healthy climate and a low cost of living make it a popular place to retire in for Europeans.
However, the only hurdle one must face here is the Turkish Law that states that all foreigners must obtain permission from the Military authorities before they can acquire property on Turkish Territory.
This process of approval by Turkish Military can take up to twelve weeks. However, as it stands right now, there is a massive backlog of applications since the country's legislation was re-drafted in 2005. But don't be disheartened because the new law has been put in place since Jan, 2006 and everything is expected to return to normal by the end of the year.
The good news is that the recent amendments made to the property law will not affect British buyers. The slightly modified law limits the amount of land that a non-Turkish national can buy up to 2.5 Hectares.
It also states that all purchases must be made within areas sanctioned by the Turkish government and those that are within an official town plan. The law also bars foreigners from buying land in areas that are of cultural, economic and military significance to the nation. The bad news is that these areas may include the popular coastal resorts that are coveted by British buyers.
When buying property in Turkey, one needs to be careful, especially when handing over any money. Once you have decided on a particular property, you will probably need to pay a deposit, which should be recorded in the contract between you and the seller.
DO NOT hand over any amount in the absence of a Contract and before putting your signature on one always get it checked by a Turkish solicitor who has experience in Turkish property law.
There are certain checks and searches involving the deeper aspects of the law that your solicitor should make at the Land Registry office. Once these are out of the way, and you have permission from the military authorities, you can then proceed to paying the money and transferring the deeds to your name.
You can also have your solicitor handle the entire proceedings by granting him power of attorney to act on your behalf. The procedure takes place at the Local Land Registry Office and really is quite simple and uncomplicated.
Seems easy enough, but remember to include certain fees and costs involved in the transaction. The land registry fees alone cost about £160, then there's the 1.5% stamp duty, the legal fees and don't forget the 3% agents commission.
As long as you are buying with either Euros or US Dollars, keep in mind to use a recognized foreign currency broker rather than you bank. This way you will get a better exchange rate and can save on commissions and fees.
The above is basically a gist of what you need to know when exploring property options in Turkey. So go ahead and get your own piece of paradise today!
Both Derek Both & Des Smith are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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