With miles of stunning coastline and a year round perfect climate, it is no surprise that Turkey is starting to build up a good base of overseas property owners who are helping to spread the word about the potential opportunities available there.
In recent years, as resorts in Spain and Portugal became over run with new developments and tourism, holidaymakers and buyers alike started to look further afield to countries such as Turkey, in search of something cheaper and more authentic.
Turkey’s position outside the Eurozone means that it was not caught up in any Euro problems and, as a result, property prices did not suffer as badly as other countries. The market has also been given an extra boost by investors from the Middle East and Russia, after Turkey lifted their buying restrictions in 2012.
Areas on the South West coast, where the Aegean meets the Mediterranean, are popular due to the good mix of small traditional fishing villages, such as Cesme or Kusadasi and bigger lively resorts like Bodrum. Property in the district of Fethiye is also favoured among British buyers, but is slightly more expensive than other areas owing to its proximity to Olu Deniz, a blue flag beach resort.
The ‘reciprocity principle’ has been lifted (where foreign citizens may purchase freehold land and property in their own names providing that Turkish citizens are allowed to do the same in the purchaser’s country of origin or residence) and this has enabled nationals of many Middle Eastern countries to buy property in Turkey. This has increased the demand for the Turkish property market and has led to high returns for investors.
It is worth noting that certain areas within the country are protected or zoned off, meaning people cannot buy or build property in these zones. Therefore, you must get the Turkish government’s approval before purchasing any type of property or land. If the permission was granted for the land that the property is located on after May 2011, no approval is required from the government.
Although Turkey offers good value for money in comparison to other countries, the interest rates on mortgages are much higher at approximately 6.50% in Euros and Sterling. Banks are currently willing to lend applicants a maximum loan to value of 75%, but this could be as low as 50 or 60% depending on where the applicant lives (ie: Middle East) and where the property is located.
As an example, mortgages are available for a maximum term of 20 years, or until the 75th Birthday of the oldest applicant. Proof of projected retirement income is also a requirement for applicants aged 57 and over, if they require the mortgage to continue past the normal retirement age.
This article was first published on Prime Location here: http://blog.primelocation.com/2014/02/11/buying-overseas-in-turkey-where-purchase-restrictions-have-been-lifted/