• RETURN ON YOUR INVESTMENT
SINCE MAY 2003 NON-TURKISH CITIZENS PURCHASED OVER 2.5 BILLION
Recently there has been an explosion in real estate sales to foreigners
Turkish resorts of Bodrum, Didim and Fethiye. As it is difficult,
if not impossible, to
avail of bank financing for a buildings off-plan in such a manner
results in cheaper
house prices for the purchaser or alternatively the opportunity
to sell the house on
completion and gain a considerable return on investment within
a 6 to 18 month
Houses currently being sold from project plans at a price of €50,000
expected to make around €75,000. Subtract from this a generous
budget of €5,000
for legal, realtor and stamp duty expenses and the resulting net
return is 40 %.
Over the past five years properties around the Bodrum penninsula
in the areas of
and Yalikavak have increased by at least 100%. These areas
are especially popular with the Turkish ‘elite’. Prices
in areas nearer to Bodrum are
rising more steadily.
Properties purchased for investment purposes may be rented as
either holiday lets
to tourists or as year-round rentals to Turkish residents. Holiday
villas in the Bodrum
area are currently being advertised at €300 - €400 per
week from April to June and
at €400 - €500 from July to September. Dwellings of
approximately 80 square metres
in the vicinity of Bodrum town are rented on a yearly basis for
around €350 per month.
The advantage of a year-round rental is that there are practically
management expenses. Holiday-rental homes require constant management,
fees for basic property management services such as house inspection
administration of household expenses (electricity and water bills,
etc. ) are
approximately €50 per month.
With regard to yearly rentals, legislation
in Turkey ( as in UK ) favours the tenant.
It is therefore advised that, when renting to a local on a yearly
basis, a Turkish lawyer
draw up the rental contract.