Many say that 2009 was Turkey's year, but the signs suggest that 2010 could be even better. Conti has seen a steady increase in mortgage quotes for Turkish properties over the last year, and in May alone, the number of quotes issued was double that of the previous monthly average in 2010. As such, it's turned into a bit of an investor hotspot. The warm climate and beautiful coastlines help of course, but Turkey also offers some great property prices within a shelter from the euro, which means that your money goes much further than in some other popular destinations.
Tourism in Turkey has also risen dramatically over the last few years, and it was reportedly the only one of the world's top ten tourist destinations to record an increase in visitors last year. While 2009 saw the economic downturn force global tourism to contract by 4.3%, Turkey welcomed more than 27 million foreign visitors, an increase of 2.8 per cent compared with 2008. Because it's outside the eurozone, it has been attracting an increasing number of holidaymakers who are looking for value. This means that demand for quality rental properties in the popular tourist areas should continue to outstrip supply, making rental yields very lucrative.
Clare Nessling, Conti's operations director, says: "These factors, combined with low interest rates and some bargain property prices, have made Turkey increasingly attractive, as well as more affordable, for UK buyers. Property purchase costs and taxes there tend to be lower than other popular hotspots. Accessibility is important too and the country has a wide choice of airports which are well served by flights from the UK. Bodrum, for example, is only half an hour's drive from the international airport."
When it comes to obtaining a mortgage in Turkey, this is a generally straightforward procedure. A deposit of 25-30 per cent of the purchase price is generally required, the maximum loan term is 20 years, the loan is on a repayment basis, and your total mortgage payments and other financial commitments must not exceed 33 per cent of your monthly gross income. You can usually choose between a sterling or euro mortgage (euro mortgages tend to be cheaper at the moment), but in order to protect your own financial interests, we recommend that an overseas mortgage and the income used to service the mortgage repayments are in the same currency. This will allow you to avoid exchange rate issues. When it comes to current mortgage deals, these start at around 4.05 per cent.
See Also: Turkey (12), Bodrum (2)
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