Turkey has become an attractive place to buy property abroad with low prices and in certain conditions no capital gains tax. However all that glistens is not Gold and buyers need to be aware of certain aspects of this market to feel 100% confident.
Turkey's popularity as an overseas property hotspot is very apparent as 2007 sees a flurry of activity from overseas property buyers looking for the best deal in Turkey. It is no wonder property investors who secure the right property in the right location are set for good capital appreciation.
Timing is important and buyers of Turkish property should be prepared to hold onto their new purchase for at least 5 years .The big bonus for international real estate investors and second home buyers is that a property held for 4 years attracts no capital gains tax.
To truly benefit from Turkish property as an investment it is advisable to purchase Turkish property constructed after 1999. Owning a home in Turkey constructed after this date means that you are secure in the knowledge that it complies wirth earth quake proofing laws. Something your buyer will be looking out for when you come to sell.
It is essential that you use a lawyer when buying property in Turkey no matter how attractive a deal is or appears to be. You should never feel under pressure to make a purchase and always be prepared to walk away from a purchase. Foreign buyers attracted to under the table deals make themselves vulnerable to a rip off. It is sometimes not appreciated by foreign buyers that debts that a property has are passed onto the new owner when the title deeds are transferred. Imagine how you would feel acquiring the previous owner's debts and being legally responsible for them!
You may wish to consider using International Developers Information Packs or IDIP when buying off plan / pre constriction property in Turkey. IDIP conduct legal checks on a property developer and the development and can reveal the legal status of the company , financial records and details about the development. IDIPs are being used by investors to help them make decisions to purchase and will help avoid investors becoming victims of unscrupulous developers. .
My essential tips when buying Turkish property include:
1.) Buy in the right area non nationals are not allowed to buy property in areas assigned by the state as military or strategic zones. However you may have unscrupulous agents trying to sell you a home that you cannot buy.
2.) Open a Turkish bank account to buy the property pay bills etc. It is a good idea to seek a currency specialist when transferring money abroad on a regular basis. You will not have to be at the mercy of fluctuating exchange rates and will know in advance what you money is actually worth when you transfer it.
3.) Have your money ready you will need a 10% deposit on hand to secure your dream home. Be aware that once this has been accepted you will lose your deposit if you decide to pull out of the deal.
4. When hiring a lawyer to buy a property in Turkey it is important to know exactly what you are signing and translated documents are the best way forward
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