Foreign property - a good investment?

EdgarAllenPoo

My parents are looking into buying some villas to rent in Turkey. It seems to be the best time to do it before Turkey gets into the EU and property becomes too expensive. My dad has turkish friends who work here but use the money they earn to invest in property back home.

Is Turkey a good option for investment given it's close proximity to various trouble zones, it's own political situation and it's propensity for earthquakes.

Last year prices for property in the Canary Islands were quite reasonable but have since doubled or tripled so they're not sure if that's not really a good a good option because for the price of a four bed villa in Turkey you can only get a one bed apartment in the Canaries.

The plan would be to rent out the property, can anyone give me some info on what the rental market in Turkey is like.

They would be looking to spend at most €80,000 on each property so if anyone has any idea of an area where they can get something decent with good rental potential please let me know. (personally I'd buy property in Canada,it's dirt cheap ( you can buy a five bed 14000sqft house in Calgary in Western Canada for €81,000) and the economy is great but rental potential isn't the best and I'm not the one with the money.

Carpenter

I have the name of a company that sell over there and are irish if you wany it pm me

garred

There are numerous threads on this. Personally I've always felt that Turkey would be a better investment than other countries for various reasons.
Am actually flying over there tomorrow to check out properties (time to put my money where my mouth is).

RainyDay

I think a lot of people are rushing into foreign property investments without really understanding the benefits, the risks and the implications. I'm also wondering why these 'brilliant' investments have to be sold off via costly exhibitions in Ireland - obviously the cost of these exhibitions and the investigation trip flights is simply built into the apartment price. If they are such brilliant investment opportunities, why aren't the wealthy Turks picking them up?

For those of you who are considering Turkey, I'd be interested to hear your views on the currency risk involved, the taxation issues (income tax, capital gains tax, property taxes), the legal issues (validity of title, tenants rights), the economic issues (future of Turkey's economy), the practicalities of renting (vacancy periods, agent fees, local maintainance), banking issues (requirements for local accounts, costs of funds transfers) etc.

Walking into a major investment without having a good knowledge of all of these issues is a recipe for disaster.

Blackjack

What RainyDay said.

sugardaddy

i plan on saving up money to invest in property abroad.i have seen apartments that look pretty reasonable in turkey and bulgaria.especially bulgaria.these apartments are priced at 10,000 and 20,000.i would llike to rent it out to make money off of it,but i wanna find out the risks and added costs of agencies and taxes etc.i also wanna find out about lettting and about bulgaria and turkey.as someone mentioned there before about some problems with turkry ,like earthquakes and that ,this would also worry me about investing in turkey however that doesent mean im completly thrown off the idea,so if anyone has any info and/or advice i would really appreciate it,thanx

is_that_so

IMO France is worth a look, in particular the fact that they operate a leaseback system. Basic prices are €100-€150K. If you can get 25% of the cost the leaseback payments will cover the mortgage.

soma

is_that_so wrote:

IMO France is worth a look, in particular the fact that they operate a leaseback system. Basic prices are €100-€150K. If you can get 25% of the cost the leaseback payments will cover the mortgage.

Eh - you may want to check out the french tax system first - you'll be paying alot.

cousin_borat

For any country such as Bulgaria, Slovakia and probably Turkey as well I would more or less discount getting any rent. If you do you will be lucky and it will be very small.

Therefore you have to look solely at the capital appreciation of the property. The other big to look at is the stamp duty. Many Agencies advertise a goverment having a relatively low stamp duty. This may be the case for a company or for an individual holding onto the property for a year or less. Any longer than this an individual buyer very likely will have to pay significantly more stamp duty.