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Why invest in Turkey
Turkey - Investment Growth
In turkey over the last two years land prices have doubled and in the last year property prices have risen by 25 – 40%. Recent research has show that by comparison Investments made since 1994 have yielded the following average returns:
Stock market 18% (gross)
Pension plans significant loss (net)
Turkish property 568% (net)
General Capital Appreciation Projections
In the opinion of ‘A place in the Sun’ cited in the October 2004 edition of their magazine, the price increase in beach areas is expected to increase initially by 50% and then over the next two to three years 100%.
Taking an average of 25% capital growth, a property purchased at 60,000GBP with sustained growth over five years will have a market value of 183,105GBP. That’s a massive 305% return on investment.
Capital Growth Estimation
* Estimation below is based on projected Capital Growth for A Bodrum based property in Turkey and is an example only based on generally accepted market growth figures.
It has been estimated by many professionals in the field of property investment that the capital growth anticipated for properties in Bodrum area over the next 2 years is in the region of 40-50 %
Property Type purchase price projected sale price potential profit
2 bed Apartment 65,000GBP 91,000GBP 26,000GBP
4bed Villa 128,000GBP 179,200GBP 51,200GBP
** The projected capital growth is illustrated above at a rate of 40% and is for guidance purposes only.
Turkish property has drastically grown in popularity in recent months with some excellent property available offering outstanding value for money. Property in Turkey is popular not only as a permanent retirement retreat but for second homes and for property investment purposes offering high potential returns.
The climate in Turkey is second to none and Turkey is home to hundreds of miles of stunning coastline and beaches. Property in Turkey generally offers superb value for money, excellent investment growth potential and a relaxed way of life with comparitively low cost of living.
Turkey Investment Property
With a steady increase in annual tourism, Turkey is experiencing an unprecedented level of international exposure and this is, in turn is creating more tourist interest and increasing demand for Turkish property. The value of Turkish property is expected to appreciate in beach front areas by as much as 50% initially, with forecasts for the next two to three years reaching 100%. When the Turkish law changes to allow mortgage facilities to become more widely available, property prices are expected to continue to rise accordingly.
The area around Bodrum is particularly popular amongst Turkey property investors as the Turkish government is improving the tourism infrastructure in an attempt to make this area one of Turkey's top tourist attractions. This investment includes the expansion of Bodrum airport, the building of three marinas and the area's first golf course. As this investment programme is only in its early stages, property prices have not yet reacted. This is certainly an area of great potential to property investors.
Why Invest in Turkey?
Turkey is an attractive investment to purchasers looking to catch an emerging market from the start while Turkey is on the verge of becoming a mainstream international holiday destination. With EU inclusion possible well within the next ten years, Turkey represents strong investment potential, particularly for Buy-to-Let strategies.
Economic Factors:
·Stunning beaches and climate make it a very popular and well tested holiday destination.
·Turkish summers are a lot longer than many other EU destinations offering more hours of sunshine per annum.
·Turkey has a huge population of 70+ million. This creates a strong internal property market meaning investors are not reliant on international investors for resales.
·Turkish population growth is around 2% per annum with 70% of the population younger than 30, this creates a strong local market.
·Low cost of living and long summers make it a favorite retirement spot for the Europeans.
·Life in Turkey is easy and inexpensive
No investment today offers the stability and simplicity coupled with the excellent return offered by investing in property. The stock market can offer high returns but it is a very volatile and dangerous place. This is especially true for the non-professional and there are so many external factors that can effect your financial investment. Add to this the fact that the major stock markets have generally been under performing and Property investment stands head and shoulders above other forms of investment.
Advantages of Investing in Property
Property is now the wise investors weapon of choice. No other investment allows you to purchase with other people's money (The Bank) and then pay this back with other people's money (the rental income from tenants). If you own property you can release equity
against this, although there is no law that states that your property will increase in value year on year it is accepted that a well maintained property in a reasonable area will appreciate in value.
• 50% of individuals mentioned on The Times Rich List made their money through investing in property.
• A property worth just €4000 30 years ago would be today worth around €225,000.
• Equities or Stocks can be volatile, as with the .com crash. Property however is historically stable.
The benefit with buying specifically for Investment is that you can remove the emotion from the purchase and look at the property as an investment vehicle, whether this means utilizing a re-assignable contract option and selling at a substantial profit prior to completion or taking the "buy-to-let" situation and generating a good reliable rental income, incorporating substantial capital appreciation at the chosen point of sale.
Why Invest In Turkey Property Now?
Now is seen as the ideal time to invest into the Turkish property market. Turkey has started the process of joining the EU that traditionally makes a huge difference to any property market. Turkey has a massive and fast expanding tourist market that looks set to continue to grow rapidly and create even more demand for quality accommodation - ideal for off-plan property investors.
Turkey offers stunning beaches and a climate that far surpasses many of Europe's most in demand holiday destinations and property for retirement and second home purposes will always be in demand for these reasons alone. Property prices are at the current time very competitive and every indication is that Turkish property will appreciate rapidly with the more general introduction of flights, mortgages and a more mature EU application.
Property in Turkey also has an extra appeal to investors as Turkey has a huge population of around 70 million and so there is massive demand for property from within Turkey and the market is not totally reliant on foreign investment. If the Turkish EU application is successful then the internal demand for quality accommodation in the best locations will be even bigger.
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