What's behind the rise in Turkey Property Investments?

Turkish property market has everything going for it. Recent reforms mean that Turkey is very likely to join the European Union in 2015. (That seems a long time away, but the majority of Turkish gains in house prices is expected to take place over the next 5 years). The only real question is whether accession to the EU will move forward as the European Commission, for the first time, put on the qualifications of this potential member state of the invitation.


Turkey is a moderate Muslim country with very naturally people warm and hospitable. If you talk to someone who was on holiday in Turkey, is easy to draw a picture of a nation with a lot to offer and a fine tourist industry. Turkey is much more than just a place to buy a holiday home in the sun. Here are some other reasons why Turkey will be one of the 5 best performing markets in the next 10 years:

* Forecast for EU membership
* Economic growth is the same as the rising stars of the East, China and India. In 2003, GDP growth was 8%.
* Large-cost labour, capable of competing with any competitor of labor in terms of industrial production and the cost base
* Very inexpensive housing costs - now at levels not seen since, even in Spain for two decades.
* Gateway to the Middle East - Turkey will be very important, both economically and politically, once a member of the EU
* Even a short-haul aircraft.
* The number of flights is increasing, costs are declining.
* Strong Growth Projected in the tourism sector, in particular the United Kingdom
* Great climate and regions


While a well-established tourist destination in Turkey real estate market is still relatively undeveloped. However, this situation is set to change, since the government intends to turn Turkey into a major economic power in the growth of tourism as a key part of their strategy.


Key factors in the economy

* Excellent capital growth projections by about 25% per annum

The price of land in Turkey have increased in recent years and, in many cases, doubled. From 2005 to 2006, property prices have increased by 25-40%. Recent research has shown that as compared to investments made since 1994 have average yields:

* Exchange - 18% (gross)
* Turkish property - 568% (net)
* The pension significant loss (net)
* In the view of "A Place in the Sun" in the October 2004 issue of their magazine, the price increases in the beach areas are expected to increase by 50% initially and then over the next two to three years 100 %.

Taking an average of 25% of the capital growth, a property purchased 60000 pounds with sustained growth over five years will have a market value of 183105 pounds, which means a huge 305% return on investment.

Turkey is just entering the process of the EU
Turkey is currently at the very beginning of the long road to the possible inclusion of the EU, it means there is yet another price for 5-10 years before would rise substantially. Prior to joining the EU, there are many factors remain to be discussed and Turkey many questions that must be corrected before the incorporation will be seriously considered. But Turkey has strong support for its entry and when it does get accepted into the European Union, it is reasonable to expect real estate prices to rise sharply in the direction of a huge surge in the tourism sector.

Many investors are buying in Turkey with the EU inclusion as a major driving force, while seeking to take advantage of the current weakness in real estate prices and increasingly the rental market.

Turkey is on the verge of a property boom
With so many indicators, many of which are described on this page, to see its clear that Turkey is at the beginning of a "good deal". A period of prosperity generally indicates a period when demand for goods exceeds the supply. This is currently the situation in Turkey, particularly in the major areas of investment such as Bodrum, Istanbul and Dalaman.

Turkish economy is very strong with 6 2005
The Turkish economy is currently very strong and has a lot of growth. After an average growth of only 2.8% for ten years, from 1993 to 2002, Turkey has managed to achieve a growth rate of 5.9% in 2003 and a rate significantly higher in 2004. Turkey now has the 22nd-largest economy in the world.

Excellent value of the properties frontline with high potential for capital growth
What's really generating interest among investors, it is the present value of silver properties in Turkey. The Turkish market still offers excellent quality at prices that most other parts of the same caliber could offer, 10 years ago. Those prices, combined with the expected growth in abeyance due to the robustness of the market, the property offers investors a unique opportunity.

More than 25 million tourists visit Turkey every year and stimulate the real estate market
An important indication of the current state of the housing market is the tourism sector. In Turkey, the tourism market is growing massively in the country gains more exposure in the international press. The possibility of becoming an EU member is slowly beginning to take root. The present demand of Turkey is reflected in the 25 million tourists it attracts each year. This translates into strong rental yields buy-to-let investors who buy in the best tourist resorts.

Golf tourism is changing in Antalya, making most valuable investments golf
Golf has been a powerful factor for success in many real estate markets in the world for many years. Spain has used golf to generate a very strong second season with thousands of players flocking to its shores to play golf during a time when they can not play their sport at home. With golf is so popular in the world of many developments are being built around the plant, or near the golf course. Namely Turkey and Antalya is no different. See Golf property in Turkey.

Turkey offers a modern infrastructure
Many emerging markets have a limited infrastructure, and it is always an issue that could delay the development. But Turkey has a solid foundation and a modern infrastructure that is rapidly growing in line with its economy, tourism and real estate markets.

Turkey is seen as a dynamic country of the World Trade Organization
Turkey is a country emerging dynamic and equipped with a network of well-developed infrastructure and a workforce globally competitive. Its unique position at the crossroads of trade routes in the world and its proximity to energy development in the areas of production from the Caspian and Central Asia are factors that raise further its economic potential in the coming years.

Turkey is also home to a thriving tourist industry and real estate market booming, attracting huge international interest.

Property prices are rising
The price of land in Turkey have doubled in the past 2 years.

"A property which has cost 35000 pounds sterling in 2004, but starts at around £ 60000 shows that prices have risen by up to 30% in some regions, but the quality of construction is of good quality and, relatively speaking, property in Turkey remains a good deal. "(The Times Online February 2005).

No tax on capital gains
Turkey also proposes tax incentives that are of great interest to property investors, such as regulations on the tax on capital gains. If you sell your property, after four years, there is no tax on capital gains. Whether the property is sold before the grant period will be charged at the standard rate of income tax (15% and 35%), calculated on the difference between the price of buying and selling.

General economic overview
The Turkish economy is composed of a set of industry and commerce. With an area of traditional agriculture, which still accounts for more than 35% of jobs, it has a large and rapid expansion of the private sector. However, the State continues to play a major role in basic industries, banking, transport and communication.

The largest industrial sector is textiles and clothing, which accounts for a third of industrial employment, it faces stiff competition in international markets with the end of the global system of quotas.

However, other sectors, including the automobile and electronics industries, are increasing in importance within Turkey's export mix. In 2004, GDP growth reached 9%. Inflation declined to 7.7% in 2005 - a 30-year low.


Turkey offers a very competitive cost of living. This is another driver for tourists and those seeking to re-locate. The money goes much further still in the hot environment Turkish.

A beer costs around € 0.60 and a meal in a restaurant starts at around € 8.00. (2005 Turkish Embassy information).

Summary of economic factors that Turkey is a worthwhile investment

* High projected capital growth.
* The process of integrating Turkey into the EU began.
* Turkey is at the dawn of a property boom.
* The Turkish economy is very strong and vibrant.
* High flow of tourists will increase.
* Golf tourism is being developed.
* Turkey has a modern infrastructure.
* After four years, there is no tax on capital gains for property investors.
* Land prices are rising.
* Properties frontline with a high return on the rental or resale are still available.
* The cost of living is low.


Key natural factors

The varied landscape of Turkey offers investors a wide range of fields where to put their money. Turkey is a marvel of today while the remains of civilizations beginning of a modern life, turned to the west republic.


Beautiful beaches and a variety of activities make it a popular and well proven holiday destination

Turkey is known for its unique and diverse natural characteristics. Tours turquoise water from the Mediterranean beaches and coasts of the Aegean Sea as they bask in the hot summer sun. While the Black Sea coast is much less explored but wetter and more rich in vegetation, for the moment, this region is largely dedicated to agriculture and is rarely explored by tourists.

Although Turkey is expanding to keep up with the current level of tourism growth, it has a very strong infrastructure, which has preserved its tourists enjoying many years, which is well versed in what is required of a successful holiday destination :


Golf is for the moment limited to the area around Antalya, but as the industry succeeds and profits are realized, it is certain to extend it to other areas.

The area around Belek is famous for birdwatching and enthusiasts around the world will continue their hobby.

Yachting is another thriving tourist industry - many small ports and islands are an ideal destination for the boats.


Visits

To learn Turkey would take you a lifetime. This country is so rich to go to places and things for tourists to see - from the hot springs Pammukele (known as the Cotton Palace) for the splendid mosques of Istanbul, there is something for everybody.


Turkish summers are much longer than many other EU destinations

Turkey enjoys a wide variety of climates, ranging from temperate climate of the Black Sea region, the continental climate of the Interior, then to the Mediterranean climate of the Aegean and Mediterranean coastal regions. The coastline touching the four seas that surround the country is 8333 km long.


Good climatic factors


The climate in Turkey is second to none and is the reason behind the success of its tourism industry. The summer is hot and very reliable, bringing the sun worshippers from around the world for its beautiful coastline. Temperatures range from 21 ° C in April, in a very hot 31 ° C in mid-summer month of July and August.

It is not only the exceptional weather that gives Turkey an advantage over its competitors, but also the many hours of sunshine each day, it enjoys. In general, Turkey receives 8 hours of sunshine in the low season (April), a huge 12 hours in the peak season.

Many visitors to Turkey may find it too hot in July and August, preferring to go in June or September, when temperatures are still in the 80s, while continuing to enjoy approximately 12 hours of sunlight daily .


The size of the population means that Turkey has a strong domestic market for property


While Turkey enjoys an increasing amount of international investment, many buyers are deciding to buy Turkish property because it has a huge advantage over other emerging markets: With a large population of over 70 million and that 'Turkish economy continues to grow, people are more Turkish able to purchase property, particularly with the new rules allowing Turks mortgage to be used to finance purchases of property. With the Turkish population continues to grow at a rate of 2% per year, 70% of this population is under 30 years. New financing laws and possible inclusion in the European Union means the average Turkish citizen will be generally more affluent. The future looks bright for the internal market in goods in Turkey, and therefore it is equally promising for foreign investors to own property in places.




Turkey property investment strategies

The "Buy to Let Market in Turkey
Turkey is a market very unique. It has so much to offer the foreign investor property at the moment it is very popular with buyers looking for a new market in which to generate substantial return on the initial investment. Usually, emerging markets can present a higher risk for the investor who buys property for the use of a "buy to let" investment model because they rely on the growth of tourism to provide a constant flow of visitors who wish to rent their property. In Turkey, tourism is already very present and growing at a rapid pace, which means that there is already a large and growing demand for 'buy to let "properties.


In addition to the enormous potential of holiday rentals lucrative the huge Turkish population (70 million +) also means that there is great potential for long-term lease. Thanks to the quality of play and build specifications of many of the best developments along the Turkish coast many Turkish nationals wishing to buy holiday homes here and it is estimated that if the EU is granted then inclusion Turkish nationals are usually more funds available and to be Measure to buy quality goods in the areas of quality.


The enormous volume of tourism pouring into the main stations Turkey is also in the process of creating a demand for long-term accommodation for the tourism industry, which are re-location of the service area at the request of increasing number of tourists.


In general, the "buy to let" market in Turkey is very sound and is one of the main reasons why Turkey appeals to foreign investors in the property.

Buy to Let (Case Study)
Adam decides to buy capital goods, and he decided that the "Buy-Let 'investment strategy is for him.


Adam savings of £ 55,000.

After careful consideration, we have recommended that Adam bought a 3-bedroom villa in Bodrum Yalikavak at a price of £ 172000.

Adam initially paid £ 2000 reservation fee to hold the property.

Next Adam paid a deposit of 30% of £ 51000 (£ 2000 after his booking fees already paid)

Adam helped us to the release of equity from the United Kingdom for other goods £ 119000 at a rate of 5.0% (current rate UK) over 20 years, that translates into a monthly total refund Borrowing £ 785 (capital + interest), which is equal to £ 9420 over 12 months.

Adam begins to let his new property immediately and within 4 months "High Season" it receives £ 2000 per month in rental income. In autumn and spring, it receives 3 full months. Lease payments on its Turkish property is £ 14000. Adam passes c £ 100 per month in a management fee of £ 1200 per year. This leaves a net rental income of £ 12800 per year. This brings its total mortgage and leaves an income of £ 3380 per year.


Adam's property in Turkey was purchased in December 2005. In January 2007, the market value of goods amounted to £ 211,000. This is a capital appreciation of unrealized £ 39000 in 12 months. In short, Adam has been able to increase the value of his investment of £ 39000 and earn a net rental income of nearly £ 3400 in 2006.


Short-Term leave it in the long term Letting.
The final decision to be made by the "Buy to Let Investor" who is to leave the strategy to use. Its obvious that the highest income is made by the property owner, leaving in the short term during the high season. However, you can set this off-against the constant increase in overhead in the short-term rental to find customers and maintenance costs between customers. Long term rentals typically pay less than a month on month basis, but generally require far fewer contributions from the owner and rental income is fixed in the course of the year. Some owners choose to rent long-term during the low season and in the short term, then to higher paying customers vacation during the high season. The decisions on leaving your strategy are generally responded in part to the property you buy. Some properties lend themselves to short-term vacationers (those holiday resorts such as Bodrum, Fethiye and so classified as Perfect holiday in Turkey) and other long-term, the local population as permanent homes such as our properties classified as goods retirement in Turkey. Our experts will help you decide what is good and choose the strategy of ownership and location that suits you best.

"Buy to Let 'strategy is not ideal for each investor and it is essential that the ownership of this strategy is that we must choose wisely rental property in a popular location to enable the investor to maximize income of the investment.

Another advantage of this type of investment is that, during the period of the property is leased, and investors to earn income and a holiday home, it is still enjoying the value to one of the most rate Quick available. In all the "Buy to Let 'model investment is a good investment decision, and Turkey is now an ideal position to deploy this strategy.



Value of capital, strategy

The real gains in Turkey is derived from property in terms of capital appreciation.

Case Study - Off plan for the purchase and resale

We led an investment fund based in Britain outside the ground in the development plan Gumusluk Bodrum. The funds earmarked 3 ground-floor apartments and 2 penthouses in the same building within a waterfront development in October 2005. By the time the units have been reserved, the developer had a large promotion plan in place which lasted 2 months. Total purchase price amounted to £ 325,000. The payment terms negotiated with authorized developer of 25% in advance and the rest after the completion bloc. The amount paid in advance was £ 81,250.

We ensured that the investment fund booked their units in the final stage of completing the development containing a total of 145 units. We knew that this development will prove very popular among buyers of second homes and sell quickly enough.

In November 2006, all 5 units were sold by the investment funds for clients referred by us. The turnover amounted to £ 409,000. The date of completion of the development is expected in April 2007, meaning that new buyers will pay the full purchase value in less than 1 month later completion. The investment fund's total profit from the sale amounted to £ 84000 (£ 409k - £ 325k). Considering that the initial investment was only £ 81250, the fund's return of investment is 100% in 18 months.

The above strategy works perfectly well in the new real estate markets such as Turkey. Our properties in the category includes Turkey Investment Property developments that are ideal for capital appreciation.

* Off-plan investments in Turkey can offer the investor the opportunity to buy at the lowest price and obtain maximum return on investment.
* The maintenance of the property for a long time offers excellent opportunities for rental income. Meanwhile investors enjoy a beautiful holiday home while watching valueappreciate property.


Wide shot of the property in Turkey (for maximum capital appreciation)
Turkey is a tip as an area of enormous growth potential. Most investment opportunities, we offer Turkey are on plan using property projects. That is a villa on the plan, city or apartment you want, on the purchase plan allows you the opportunity to buy at the best possible price and offers maximum appreciation capital. You can learn how it is possible to create wealth through property investment plan on Turkey.


Buying off-plan in Turkey is currently allows investors to purchase property at the lowest possible price and with the best option finance. It is located in areas that will attract major rental demand and high price appreciation. Customers who buy early on our carefully selected Turkey developments tend to earn more than 25% capital appreciation per annum.


Investors buy property in Turkey usually try to follow the "buy" to allow Turkish model by the purchase of property then looking for a rent to the increase in the number of tourists for renting high yields. During this period, investors expect the value of the property and to continue to improve the value of their investment increase substantially. Currently, the property prices through Turkey are 25-40% per annum .

Why Turkey is much cheaper if purchased on plan?
The promoter of a project is still at risk. They want to cap this risk as quickly as possible and to limit bank loans and other debts. They do this by selling units on the plan at prices that buyers can not see a physical property, at this stage, and build on the location and artist prints, charts and computer simulations .

In addition to the excellent price, the investor enjoys a funding structure because it is on plan. The investor should generally pay about 30% of the property value in the form of a deposit. The balance is due to the completion or in various stages of completion and in most cases can be financed by a mortgage. Mortgages in Turkey will soon be widely available to foreign nationals. Please check our Finance Section Turkey property.

Once you have decided to invest in property in Turkey on plan, you need to decide what strategy to be adopted to achieve return on your investment. We will help you to choose the most appropriate option and create an investment plan, be it a "Buy and sell" or "Buy leave" strategy.


How to optimize Profit From an Off-Plan Property in Turkey

* Purchasing beginning
For the reasons mentioned above, developers will be well below the units offer their market value. It is important to buy your property on Turkey plan as soon as possible as the market is in its early stages of development. The prices remain very competitive but which is already under way in the growth curve steep, so investors who buy now will see the greatest benefit.

* The purchase of the best units
As our investors are aware, at the beginning of their offer to buy the most sought after on the properties of a given development. Penthouses are firm favourites when the units still offer the best capital appreciation higher in less time and often requires the greatest rental income.

* Price increases as development matures
As development begins to build the unit value increases. There are normally completed a show house built so that buyers take less risks now that they do not need to rely entirely on the plans.

* Price appreciates that sell more units
As more units are sold within a development, the price of the remaining units is increasing. This is due to buyers to be able to see the existing units, as described above. There is often a phase of payment structure that reflects the increase in property values. Obviously, the early investors, it means the unit sales will attract a profit, which is considerably higher at this stage until the filing date of payment.

It is possible to make an excellent investment choices with Turkish properties on the plan, we expect the current climate to continue for at least 5 years. We specialize in helping customers select the best new investments and to generate wealth through safe and intelligent property investment in Turkey.


Turkey property by category

* Bargain Property in Turkey
* SEA Property in Turkey
* Golf Property in Turkey
* Real Estate Investment in Turkey
* Maison de la Nature and mountain in Turkey
* Perfect holiday in Turkey
* Upgrading property in Turkey
* Retirement Property in Turkey
* Village house in Turkey


Turkey property by location

* Turkey in the property Akbuk
* Property in Turkey Alanya
* Turkey in the property Altinkum
* Property Turkey in Antalya Regions
* Turkey property in the city of Antalya
* Property in Belek Turkey
* Property in Bodrum Turkey
* Turkey in the property Dalaman
* Turkey Property in Datca
* Turkey in the property Didim
* Property Ephesus in Turkey
* Turkey property in Fethiye Calis Beach
* Property in Turkey Fethiye Hisaronu
* Property Fethiye in Turkey Kemer
* Property in Turkey Fethiye Oludeniz
* Turkey in the property Ovacik Fethiye
* Property in Turkey Gocek
* Property Turkey in Istanbul
* Property in Turkey Kalkan
* Property Kas in Turkey
* Property in Turkey Kemer
* Property Kusadasi in Turkey
* Property Marmaris in Turkey
* Side Property in Turkey


Turkey by type of ownership

* Turkey Apartments
* Turkey Bungalows
* Turkey Land for Development
* Turkey Penthouses
* Turkey townhouses
* Turkey Villas


Turkey the status of property

* Completion Shortly property in Turkey
* Build New Property in Turkey
* Off Plan Property in Turkey
* The resale of the property in Turkey