Ned King writes: “I’m a financial adviser in my early thirties and, instead of ploughing money into a poorly performing pension fund, I have decided to buy property as an investment.
THE PROBLEM
Ned King writes: “I’m a financial adviser in my early thirties and, instead of ploughing money into a poorly performing pension fund, I have decided to buy property as an investment. I considered buying in the UK but, as I’d prefer to keep my budget down to about £100,000, this wasn’t really feasible.
“Ideally, I would prefer to buy somewhere that I can use myself for regular holidays and that I can also rent out to get some income. I would prefer somewhere where the summer is nice and long, preferably stretching from March to October. I’ve visited Turkey several times – I’ve been to Marmaris and Bodrum – and am wondering if this country is a good place to invest.
“I also wonder if it would be worth stretching my budget if this meant I could buy a villa rather than an apartment. I don’t know if rental income is substantially more for villas. I’m definitely leaning towards buying new-build. However, I have read alarming reports of poor building standards in Turkey, so would like to know how to ensure that any property I buy will be of a good build quality. I’m considering buying off-plan to make more money so this is particularly important.
“I would like some advice on location. I enjoyed my holidays but would prefer to buy somewhere that is a bit quieter. I would also like to be somewhere that has all the facilities European visitors expect. I’m planning a trip to Turkey but I would like advice from a UK-based developer and agent before I go. There seem to be a lot of new estate agents and developers setting up in Turkey, but it is hard to know which are the reputable ones.”
THE ADVICE
“A steady rise in buyers from the UK has already established Turkey as the new Mediterranean hot spot and a real alternative to other overseas destinations for the discerning buyer. Unlike in, say, Spain – which is now pretty expensive – it is still possible to buy property in key beachside locations.
“With Turkey now in talks to become an EU member, buying property in the region is already being seen as a potentially shrewd investment. The economy has continued to thrive and property prices in some cases rose by a staggering 50 per cent in 2003 alone. Even since 1 May, some properties have gone up by seven per cent, and we expect further rises in 2004 as British interest gathers pace.
“As for Ned’s concerns over Turkey’s infrastructure and the facilities it offers, we believe that, while it might have been a problem two years ago, it’s a safe bet now. Turkey also has its own building standard now, TSE, which is the equivalent of a European building standard, but we use only one developer, whom we are sure of. Unfortunately, there are people who are just looking to make money, but the buildings we sell come with a five-year warranty, just as you would get in the UK. We wouldn’t recommend anyone going it alone: you will get something cheaper but you can’t be sure of the quality.
“The season in Turkey is long, usually from April to October. Ned may also like to bear in mind that a new ski resort is about to be built behind Fethiye in the mountains. This could potentially bring in many more tourists out of season. Not everyone likes skiing, so if dad and the kids want to go but mum wants to stay near the shops, then everyone is happy and the holiday is more relaxing.
“If Ned prefers a quieter location, I would recommend Calis. On his budget, Ned could afford a three-bedroom, three-storey townhouse in a complex with a shared pool. He couldn’t get a detached villa on his budget, but if he’s prepared to buy off-plan and can go a bit higher, he could get a four-bedroom house with pool for about £124,000. It’s a good price, and the key to investment is getting in early.”
This article was originally published on independent.co.uk
