BUYING PROPERTY IN TURKEY

Buying Off Plan - How does it work?

You have the opportunity to reserve your property at around 30% below market value. The reason properties are offered initially at such a low price is to attract individuals who are in no hurry to take occupation but realise the significant savings of early purchasing.

Construction starts with or without these early sales but of course quick sales at this stage enable the developer to make an increase in prices when constructions begins. Prices generally go up in 10% increments during construction.

• Firstly when foundations are laid
• Secondly when brick work begins
• Finally during the later finishing stages

An Off Plan Development Example:

2 bed unit priced at 150,000€

• Amount paid during 18 months construction - 45,000 euros (30%)
• Property value increase during 18 months construction period - 45,000 euros (30%)

This increase amounts to 100% of the original investment but costs such as legal fees, etc must be taken into account and the property will need to be sold at slightly below market value to encourage a quicker and easier resale.

Therefore a profit margin of 80% on original investment is suggested.

Get In Early For The Higher Returns

The figures above are examples of returns that can be achieved by investors who get in first at the very early stages of selected developments. Obviously if the overall overseas property market continues to grow year on year, the returns will be that much higher.

Rental Returns on Your Investment

Whilst back in their own countries these property owners are also benefiting from rental returns of up to 20%. Property prices in Turkey have been increasing steadily but investment property prices and returns are about to escalate as they have in other countries on joining the EU.

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