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Turkish Property investment

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  • 20-05-2005 11:51am
    #1
    TheLedge
    Closed Accounts Posts: 187 ✭✭


    Gents,

    was just reading the 50k thread and a lot of you seem to have invested in Turkey.

    This would interest me greatly as theres just someting about the Polish/Hungarian thing that freaks me. Turkey on the other hand i'd be willing to go for.

    What areas did you buy in? Did you use an agency? Which one? a link perhaps? Are you looking at renting them at any stage? Or just letting it sit there?

    Sorry, i've loads of questions and money to invest but i really cant afford anything in ireland right now!!

    Cheers for any help! :)


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    #2
    Hitchhiker's Guide to...
    Registered Users Posts: 3,322 ✭✭✭Hitchhiker's Guide to...


    took this following info from an Irish Times article (if you have an online subscription the link is: http://www.ireland.com/newspaper/property/2005/0217/450662133RPTURKEY.html

    A Dublin company to buy Turkish property from (cited in the Times article) is the Turkish Property Centre. Contact details for Ireland are at: http://www.theturkishpropertycentre.com/root/index.asp (this is not an endorsement of the company - i have absolutely no idea whether they are good or not)

    The conclusion of the Irish Times article states the following about some of the potential dangers of investing in Turkey:

    "Prospective buyers should not allow the allure of knock-down prices and almost certain future profit to go too much to their heads. Though Turkey is rapidly bringing its legal system up to date, it still trails some way behind western Europe.

    One problem which continues to dog the property market here is the inadequacy of existing planning regulations. Even the biggest property developers sometimes build first and get planning permission afterwards, according to local estate agents.

    Thanks to the often considerable local political influence they wield, that is not usually a problem. But prospective buyers are advised to use experienced solicitors to ensure they don't end up paying for a property that officially doesn't exist.

    A second common pitfall is the widespread and illegal practice of under-declaring the purchase price to reduce the seller's tax liability and, in return, the buyer's stamp tax. It's a form of tax evasion that Turkey's increasingly wily tax authorities are beginning to follow up more ruthlessly. Even without them, though, it's a business that risks blowing up in your face when you come to resell a property.

    Find a buyer willing to make a similar under-declaration, and you might get away with it. Otherwise, says John Howell & Co's Dennis Phillips, you "will be lumped with artificially high capital gains tax". That, he adds, "could be tax suicide"."

    (Irish Times)


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    #3
    garred
    Closed Accounts Posts: 1,036 ✭✭✭garred


    I went through www.aquariusproperties.com, they have offices in blackrock so you can pop down (they do properties all over the world). Actually going through the process at the moment so can't really tell you what to look out for. Was going to buy in Bulgaria but seeing as Turkey is a more established holiday resort I went towards the Turks. One thing is there is no double taxation agreement between Ireland and Turkey ( the turks take about 25% in tax) so do your maths and make sure its worth your while. Good luck!


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    #4
    Coney Island
    Closed Accounts Posts: 344 ✭✭Coney Island


    I am buying one in Bulgaria :D


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    #5
    David19
    Registered Users Posts: 925 ✭✭✭David19


    To the two people who have bought foreign property (and anyone else), what do you think of Roundtower2's post? Basically that the property law leaves a lot to be desired in these countries and you're risking a lot. Im just curious because foreign property as an investment sounds interesting to me but I'd be afriad of the lax regulations etc.


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    #6
    David19
    Registered Users Posts: 925 ✭✭✭David19


    I presume since no one has answered they're just conviently ignoring this aspect of foreign property investing?


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    #7
    nesf
    Registered Users Posts: 27,645 ✭✭✭✭nesf


    David19 wrote:
    I presume since no one has answered they're just conviently ignoring this aspect of foreign property investing?

    Eh, foreign property investment isn't one of my things really. Otherwise I'd be debating this with you :)


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    #8
    David19
    Registered Users Posts: 925 ✭✭✭David19


    nesf wrote:
    Eh, foreign property investment isn't one of my things really. Otherwise I'd be debating this with you :)

    Just in case you thought I was having a go at everyone for not replying my last post was directed at the people who have bought foreign property :)


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    #9
    nesf
    Registered Users Posts: 27,645 ✭✭✭✭nesf


    David19 wrote:
    Just in case you thought I was having a go at everyone for not replying my last post was directed at the people who have bought foreign property :)

    No, thats what I interpreted it as originally. Just felt I should qualify my silence on the topic since I should really be helping threads get started on here, but I just don't know enough on the topic to be of much use on this one.


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    #10
    Coney Island
    Closed Accounts Posts: 344 ✭✭Coney Island


    David19 wrote:
    I presume since no one has answered they're just conviently ignoring this aspect of foreign property investing?

    Hi, sorry for the delay, I am not on Boards that much and forgot about this thread. As far as I know Bulgaria is quite safe, and they will be in the EU in 2007. I was over there last month to view properties and meet the lawyer I will go through, and to buy an apartment is quite straight forward (my problem is that as i don't own a property in ireland i need to apply for a mortgage in Bulgaria with rates of 7% at the moment). Of course there may be a slight risk, but it gave me confidence to see that they are basically building touristic complex all over the place on the Bulgarian Black Sea.

    I believe the article above is more specifically referred to Turkey.


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    #11
    David19
    Registered Users Posts: 925 ✭✭✭David19


    Coney Island wrote:
    Hi, sorry for the delay, I am not on Boards that much and forgot about this thread. As far as I know Bulgaria is quite safe, and they will be in the EU in 2007. I was over there last month to view properties and meet the lawyer I will go through, and to buy an apartment is quite straight forward (my problem is that as i don't own a property in ireland i need to apply for a mortgage in Bulgaria with rates of 7% at the moment). Of course there may be a slight risk, but it gave me confidence to see that they are basically building touristic complex all over the place on the Bulgarian Black Sea.

    I believe the article above is more specifically referred to Turkey.

    Ok thanks for the response. I thought the article was talking about Turkey but really it apllied to most eastern european countries. Maybe not. Anyway, seems like you've looked into it quite a bit. Good luck with it.


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    #12
    garred
    Closed Accounts Posts: 1,036 ✭✭✭garred


    David19 wrote:
    To the two people who have bought foreign property (and anyone else), what do you think of Roundtower2's post? Basically that the property law leaves a lot to be desired in these countries and you're risking a lot. Im just curious because foreign property as an investment sounds interesting to me but I'd be afriad of the lax regulations etc.

    Tax is tax no matter what country your in. We will (still waiting on the purchase to go through - the land might be owned by the army) be getting a gruaranteed income of 8% of the purchase price over three years. We will have to pay tax on 25% of 75% of that income in Turkey. We will then have to pay tax in Ireland (no tax agreement). Do the maths before going for something like this. With regard to the stability of the country I have not met one person who has a bad word to say about Turkey either as a holiday resort or as an investment. People can be afraid (understandable) as it is a unknown investment to them (me included) but if its just the tax your worried about you'd have to work it out whether or not its worth your while. Remember you can probably dodge paying tax as you can over here but they usually catch up with you. Tax laws change no matter the country, take here for example with all the investment policies having to be declared recently. I know a couple of people who have been hit hard with tax on their policies but at the time of taking it out it the tax was'nt an issue.

    As I said previously it is an already established tourist resort. There are deals where you can get a guaranteed rental income for 10 years of 10% of the purchase price (think its mediteranean dreams, can't remember the company).

    If you have any specific questions just post them and if I can answer I will. As i say I'm still going through the purchase process at the mo so not exactly an expertise in the area.


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    #13
    halkar
    Registered Users Posts: 1,240 ✭✭✭halkar


    I reccomend investing in Istanbul, I know it is an earthquake zone but many new developments are made safe and rents are almost similiar to here if you pick the location right. Property prices are going crazy there last few years. Only catch you will be find it hard is to get anything less than 100k for a property that will have good rent return at least to pay itself off. :)


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