Turkey

Current Political Situation

Foreign ownership rights in 2003 and formalised ownership laws granted in 2005 have made this country a current property hot spot for overseas investors. EU accession talks have commenced, although stalled of late, shed that aura of consolidating emerging market and property market. Turkey has become very popular holiday destination during 2007. Often Europeans including British and German holidaymakers, become property purchasers soon after.

The Turkish parliamentary elections held on 22 July 2007 turned out to be a remarkable step towards democratic consolidation and civilian rule.

The centre-right AKP, reinforced its position as the single most authoritative force in Turkish politics. It increased its share to 47%. Turkey may emerge as the only Muslim-majority country in the middle east where secularism and democracy coexist. This will in turn facilitate Turkey's long-sought entry to the European Union and make the country a stabilising force in regional affairs.

Overview

Turkey's culture has a unique blend of Eastern and Western tradition, often described as a bridge between the two civilizations. It is situated on two continents, a vast country with one foot in Asia and the other in Europe being approximately 3.5 times the size of the UK.

Physical

Turkey is a diverse and fascinating country with a rich cultural heritage. Numerous civilizations and 10,000 years of history have left Turkey with an jaw dropping legacy of ancient ruins and archaeological sites for the visitor to explore.

Turkey is an extremely mountainous country with an average altitude of 1,132 metres. The North Anatolian mountains run along the north of the country, parallel to the Black Sea, with the Taurus Mountains sweeping along the Mediterranean in the south. Turkey’s highest mountain peak at 5165metres or 16,946 feet is MountArarat

There are a large number of lakes in Turkey, some such as Lake Van, which is the largest natural lake at 3,713 square kms, covering as much area as an inland sea.

Turquoise coast from Kalkan to Bodrum in the west

Turquoise sea and beautiful coastlines and lush scenery

Main areas are Turquoise coast Belek, The Dalaman region and the Lycian coast Kalkan and the Bodrum peninsula, Aegean and Istanbul

Surrounded by the crystal clear waters of the Mediterranean Turkey boasts 8000km of coastline.

Legal

Engaging a good lawyer is essential. Property in military forbidden zones and Safety Regions cannot be purchased or rented. The Land Registry confirms clearance and ensures property to be purchased is not in these exempt areas. Insist upon translated documents to ensure you fully understand the small print.

It is important to buy properties built after 1999 as they are built in accordance with laws for earthquake protection not only for your safety but as a boon when selling.

Economy / Value for Money

The Facts:

The Turkish economy is strong at present with very low levels of  inflation.Year on year inflation well above 10 percent.

Mortgages were recently made available to foreigners at low interest levels and will be a huge boost to the already buoyant marketplace.

Property held for 4 years attracts no capital gains tax As part of your due diligence exercise a useful tool is the International Developers Information Pack or IDIP when buying off plan / pre construction property in Turkey. IDIP conduct legal checks on a property developer and the development and can reveal the legal status of the company , financial records and details about the development. IDIPs are being used by investors to ensure only bona fide projects and purchases are entered into.

Turkey is undoubtedly now a property hotspot. There are over 60,000 foreign owners of Turkish property currently the majority of whom are Brits or Germans and the most likely location for their purchase is Antalya, closely followed by Istanbul and thereafter the Aegean resorts.

Embarking upon a well planned property investment where all attention has been given to choosing the right prospect can bring good capital appreciation in comparison to other opportunities available in the eastern Mediterranean. Due to the CGT legislation planning to enjoy the property for four or more years should be part of your exit strategy. A tenure of this duration for most of us however would not prove to be too arduous!

Turkey currently has an overall housing shortage and demographically more than 50% of the population is aged less than 25. This data brings a likelihood that capital appreciation due to high demand will feature in the economy in the coming years. Government policy is leaning towards investment in infrastructure which will in turn benefit tourism.

Political

A powerful regional presence in the Eurasian landmass with strong cultural and economic influence in the area between the Adriatic Sea in the west and China in the east, Russia in the north and the Middle East in the south, Turkey has come to acquire increasing strategic significance

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Its geographical location is one reason why it is being considered for EU entry albeit not without opposition which could be somewhere between 2010 and 2015.

For more information on IC Opportunities for Turkey please call our consultants or
e-mail: info@investorcollective.com