If cash is in your pocket then Turkey’s Istanbul might be the place to look for a new home. Thousands of British, German and Middle East expats flock to Turkey as the global economy has created some sort of property meltdown with dropping values, opening opportunities for those who still can – pay that is.
Options exist for expat buyers to either pay for their new home by taking a boatload of cash, re-mortgaging their existing property to buy a second home or get a new mortgage if you can.
Buying a property in Turkey is possible albeit heavy confusion over some red tape and the dreaded VAT tax that sees many sellers listing their homes for an undervalued list price, rather than the book price of a property in order to avoid paying taxes. It is advisable to enlist the help of a capable mediator who understands the local property laws and is able to help you navigate through the maze of overseas investment buying.
Istanbul has long been a classic favourite for EU buyers as sweeping views over the Bosporus and to the islands seduce the ficklest of eyes. Views to die for demand their price though and finding a reasonable affordable property offering those said views might be a bit of a push.
If living by the sea among lovely beaches with a mild climate is more your thing, then you might prefer buying in seaside resorts such as Bodum and Antalya. In total there are around 78,000 foreigners who have taken the lead and moved to Turkey to experience a different lifestyle.
The reforming of the Turkish government in 2003 has certainly offered more opportunities for expat buyers making the move a lot less risky while bringing political stability to the region.
Rental markets have always been Turkey’s mainstay but the global credit crunch has seen a huge drop: “Rentals continue, but we’re experiencing an incredible slowdown in sales, a stop in fact. Prices in the city centre are soft, with even sea view flats down by 20 percent this fall, but that’s nothing compared to the suburbs, where prices have dropped 40 or even 50 percent since the crisis hit.” said Äbrahim GÃndz, an estate agent in Beyiktay.
For those looking to buy property in Turkey, they should know that there are options to buy different models to suit investors needs.
Compared to Spain, Turkey is way more cheaper and a great property can be bought here for around 2,000 euros per square meter.
Just be wary of the VAT sales tax that rises from the usual 1% for flats up to 200 square metres to a whopping 18% for those above.
Throughout Turkey, foreigners are allowed to buy up to 2.5 hectares of land. The only exceptions are within specially designated zones surrounding army bases and the like, as well as buying prime agricultural land without a special permit from the Prime Ministry.
Whatever you are looking for, if you have cash, the you will be a certain king in Turkey.
Photo credits: Rob [via flickr]