WHY CHOOSE TURKEY?
For several years now the Turkish property market has been cited as an emerging favourite for overseas property investors. During the six years that My Turkish Home has been in business, demand has grown at a considerable pace. The Altinkum property market is now being taken up by some of the large multi-national property companies who are recognizing the potential that we local agents have known for many years.
In a few short phrases, Turkish property potential can be summed up as follows: possible EU ascension; massive private and government investments and initiatives in tourism; a young and hungry population keen for education, and economic advancement; a fabulous climate; a cost of living that offers real value for money; stunning scenery and miles upon miles of unspoilt coastline.
ARE PROPERTIES FREEHOLD OR LEASEHOLD?
All properties that we sell are freehold. If you purchase an apartment, this means you own a portion of the land it is built on.
Often older Turkish properties are on a cooperative, which means you buy into that cooperative. At MTH we believe these schemes are a legal nightmare and do not include them on our books.
WHAT GUARANTEES DO I GET ON MY PROPERTY?
All brand new properties are with a standard 10 year construction guarantee.
WHAT IS THE RENTAL MARKET LIKE?
The holiday rental market is relatively immature. We would advise caution on making purchases if this is the only way you could fund your investment. Longer term lettings are healthier and we do have success in renting out properties for longer periods (see our sister website - www.altinkumrentals.com), though the financial returns on this are not so great.
Do be wary of schemes offering rental guarantees for a limited period. Your rental guarantee is usually built into the cost of the property price, so you are in fact paying for it yourself.
HOW DO WE GO ABOUT INSURING THE PROPERTY?
MTH can help you set up your first insurance policy. Earthquake insurance is compulsory, but we advise you to include buildings and contents as well. Premiums are calculated according to the square meterage of the property and the value of its contents.
If you are part of our Housecare scheme MTH will also renew your policy every year and help you make a claim if you are in the unfortunate position to have to do so.
MAINTENANCE OF THE PROPERTY
- If you purchase a property on a large complex you will be liable for annual complex fees for the upkeep of the pool, gardens and communal areas..
- If you purchase an apartment in an individual block then the owners usually arrange communal care between themselves.
- MTH does an annual Housecare service for its clients. This involves checking the properties internally at least once a month, often more during the winter or after bouts of inclement weather, to check that everything is in order.
- Sewage – all properties are on mains sewage unless otherwise stated. The council has invested significantly in the municipal sewage system to cope with the projected growth of the town for the next 30 years.
- Gas – there is no mains gas. Gas cookers are fed by gas bottles.
- Water – unless otherwise stated, all properties are connected to the main water supply. During the summer there are occasional water cuts.
- Electricity – electricity runs at 220 volts. Please be aware that there are occasional power cuts.
- Buying tax – a purchase tax of 3% is levied on a property. This is split 1.5% to the buyer and 1.5% to the seller.
- Selling tax – similarly, when you sell your property you are liable for the same tax.
- Capital gains – you are liable for capital gains if you buy and sell within a year, or if you sell more than one property within the course of a year. If you own a property for longer than five years you are not liable for capital gains on it (unless you sell more than one).
- Rental – if you rent out a property you to have to declare the income to the Turkish tax authorities. Please click here for further information. http://www.gib.gov.tr/index.php?id=1013
WHAT IS THE WEATHER LIKE
Long, hot dry summers. The winters are warm and wet, though this last winter has been very dry. Also the winter sun can be warm, but temperatures drop at night.
If you do an internet search on local weather most sites quote Aydin or Bodrum as the nearest weather station.
WHICH AIRPORT BEST SERVES THE AREA?
Bodrum (BJV) is the main summer airport for charter flights, and is also taking in direct winter flights as well now. Bodrum is approximately one to one and a half hours drive away.
Izmir (ADB) is about one and a half hours drive away. It has year round direct flights.
Our transfer times are based on private car transfers. Larger buses with multi drop off points may take longer.
WHAT ABOUT UTILITIES?
IS THERE ANY RISK OF LAND GRAB LIKE THE STORIES IN SPAIN?
No. Once the deeds are in your hand there is no one who can take that away from you. We only sell properties where the deeds are thoroughly checked.
WHAT IS THE TITLE DEEDS PROCESS – HOW LONG DOES IT TAKE?
When you purchase a property, the details of that property are sent to the military for verification that it is not in a military zone. This process can take anything from three months to over a year. There is no rhyme nor reason for this, other than where your application lands in the pile, and there is very little we can do to speed up the process. A hold up on the deeds does not prevent you from enjoying your property if it is ready to be used.
We do not sell properties that are in militarily sensitive zones. During our six years in business we have never had a deeds application rejected.
WHAT IS THE TAX SITUATION?
I AM LOOKING TO RELOCATE PERMANENTLY. IS THIS POSSIBLE?
Yes. Yes, when you have your resifential address you can apply for a residential visa. Residential visas are available for between 1 and 5 years. We are happy to assist our clients in obtaining their visas.
WHAT HAVE BEEN THE RETURNS ON PROPERTY INVESTMENTS IN RECENT YEARS?
The property market is still relatively in its infancy and no official data yet exists for the level of returns that you can expect. Much is on hearsay and speculation… but that is the exciting thing about investing in an emerging market. From our own experience the size, style and quality of apartments have changed. 2-bedroom apartments that were selling for £20,000 to £25,000 two or three years ago are now selling for £35,000.
WHAT PAYMENT SCHEDULES CAN WE EXPECT?
This depends entirely on the property you are buying. Some builders/developers have set payment schedules, others can be more flexible.
ARE MORTGAGES CURRENTLY AVAILABLE IN TURKEY?
Mortgages have only recently been introduced in Turkey for Turkish citizens, but there are already some Turkish banks now offering mortgages to foreign buyers. Please contact us direct for details. There are also a number of UK companies offering mortgages on Turkish properties (e.g. www.mortgagesoverseas.com). Most people up till now have bought through releasing equity on their existing UK properties (or indeed through hard earned savings!)
WHAT ARE THE BUYING COSTS?
Your variable costs are the agency commission (3%), and buying tax (1.5%). Other costs include legal and translation costs, municipal utilities connections, power of attorney, land registry and map tax. These costs can vary slightly depending on the exchange rate but should not exceed more than £1200 (according to current rates in June 2007).
DO I HAVE TO OPEN A BANK ACCOUNT?
It is NOT a legal requirement to hold a bank account if you have a property in Turkey. However, many people find it convenient. To open a bank account you do need a tax number. MTH comes with you to obtain your tax number, and then open your account, as part of our service.
CAN YOU HELP WITH FURNITURE?
Yes. If required we will help you furnish your property right down to the salt and pepper pots. Our after sales team is there to provide assistance every step of the way.
CAN I BRING MY PET ACROSS?
Yes, to leave the UK and enter Turkey your pet has to undergo the recommended checks and immunization programme. Your local vet can provide more details, and there are pet cargo service companies that can offer assistance from start to finish. Be aware that should you wish to return to the UK with your pet, your pet will be subject to the usual quarantine rules.
WHAT ABOUT FURNITURE AND OTHER PERSONAL ITEMS?
Your furniture and electrical goods will be liable to import tax and must be declared.
WILL I HAVE TO MAKE A SEPARATE WILL IN TURKEY?
It is advisable to do so. Your property will fall within the parameters of Turkish law so needs to be dealt with separately by a Turkish notarized document. MTH can assist you in achieving this.