In 2007, more than 23 million tourists visited Turkey and more than 25 million tourists are expected to visit Turkey in 2008. This figure is expected to double within a few years. This makes property in Turkey attractive to international investors and the Crown Price of Dubai has already invested $5billion into the local real estate market. The Turkish Government is taking tourism inceasingly seriously and are investing in Turkish Tourism.
If you are using a mortgage to buy your property in Turkey bear in mind that the financial market in the country is not as well developed as many of us have come to expect. In particular, the only type of mortgage available to overseas buyers in Turkey are repayment mortgages – interest only and other forms of mortgage are still unknown in Turkey.
For those looking to move permanently to Turkey you will undoubtedly need to install a satellite system to receive the news and your favourite programmes in a language you can understand. And getting house repairs done locally from someone who can understand you and communicate effectively with you may not be as easy or cheap as getting them done from a local – not surprisingly, English-speaking tradesmen can sometimes charge a premium simply because they are in shorter supply and hence have less competition.
The language issue always needs to be considered when buying property in a non-English speaking territory as legal documents, tax forms and similar papers may need to be translated for you. Whatever you do, never sign something you do not understand – the costs of translating rarely outweigh the risks of signing a foreign document you cannot read.
Travelling to Turkey is gradually becoming more affordable as more low-cost routes are opened but the country still lags behind many other European destinations and finding cost-effective flights is not as easy as for, say, Spain or Portugal. That said, the prospects for property value increases are rather better in Turkey due to the expansion of low-cost flights which tend to lead to increased interest and demand for properties. Some predict that prices for property in Turkey could double.
Do not forget that Turkey suffers earthquakes and that older properties, in particular, can be more vulnerable to quake damage. Make sure you check the property complies with new building regulations and has a valid certificate of insurance covering earthquake damage – the potential for significant losses if a buyer of property in Turkey need hardly be stated.
Finally, and most importantly, don’t forget to plan how and when to transfer your money across. Leaving this to the last minute and assuming your bank will always give you the best prevailing rate can cost you another 2%-3% of the price compared to planning it in advance and using a specialist money transfer company. Similarly, if you are moving to Turkey and planning to have money (e.g. a pension) transferred over regularly these companies can save you a bundle in the course of a year.