Help me make up my mind

Crypto · #1 26-01-2008, 10:52 AM

Hi folks,

I'm very new to property overseas but am learning fast.

I'm keen to invest in Turkey and have already been out on an inspection trip.

I've been offered a deal by P.O.I on an constructed complex about 45 minutes drive from Bodrum, I think the area is called Bozbuk.

So, the offer I have is £95,000 for a 2 bed ground floor apartment 72m. Guaranteed rental income of £4750 per annum for 4 years net of all maintenance, cleaning etc for the high season. The rest of the season I can rent the place myself using Artev as the managing agents not sure how much that will be.

It all sounded like a good deal, but I wavered about the costs. I paid a £2000 holding deposit with a 2 week cooling off period. I've since got home and looked at the costs of loans etc ( I only have £55,000 cash) and expressed doubts. They have now extended the cooling off period to 4 weeks and have promised to come back with cheaper ways to finance the deal, probably through a Turkish mortgage.

Then I found this wonderfully informative site and my doubts on this deal are increasing. Is it too expensive. What should I look for as an alternative? I liked the Bodrum peninsula area but wonder if it's too expensive?

Sorry for being an indecisive wimp

TH4S · #2 26-01-2008, 12:44 PM

£95,000 for a 2 bed ground floor apartment 72m.

Sure there a few other members on this 'wonderfully informative site'.that will agree with me ..its sounds very expensive?

Buy 3 of these, you will still have change from your £95,000.

Kusadasi-1.bedroom fully furnished apartments ,£30,000.Superb Value For Money,

http://www.totallyproperty.com/turke...-30-000-a.html

spotblue · #3 27-01-2008, 11:53 PM

I too feel you do not have to pay quite so much for a two bedroom apartment, and if there is a guarantee rental - then make it is written into your contract and you know the full details of it before sgining. In Turkey, like any country in the world ,the prices vary across the country

Olly · #4 28-01-2008, 11:16 AM

Hello Crypto

Agree with other reply which stated this price is too high. However, I'd also suggest you need to decide how long you want to keep a property in Turkey. What's your exit strategy. It is currently VERY difficult to make a resale in Turkey. In fact, there;s every chance you'd have to sell below the rate purchased.

Olly

TH4S · #5 28-01-2008, 12:43 PM

Crypto your second post was..?

Quote:

Quality of building and lifespan in Turkey
Hi,looking through loads of adverts for apartments and villas in Turkey, I come across several adverts for "resales" that require total renovation. Some of these properties are only 10 years old and one was only 4 years old.
What's the problem here? Are there some very poor builders in Turkey or do the rental tenants trash the places?I'm looking for a long term investment for my retirement pension, I don't want to have to re-build the place after 10 years.Any views?

Yet you say you have paid a £2000 holding deposit and they have promised to come back to you with cheaper ways to finance the deal, probably through a Turkish mortgage,

What's the problem here? .

freshbrain · #6 28-01-2008, 05:37 PM

Hi,according to the replies and what u ve written, i can say that the price is really high...as i am working for a company that sells 5 bedroom villas for £110.000.and also another villa with 3 bedrooms for £88.000.But i can easily say that when u buy our villas you will be investing for the future...if u want further information please contact me....

Crypto · #7 28-01-2008, 05:56 PM

Sorry for the misunderstanding. My first post was about the £95,000 deal, for which I have paid a £2000 holding deposit. I have 28 days to make up my mind and can back out of the deal and get my deposit back.

The reason for the second post on build quality is that I am looking at alternative ways of investing in Turkey, one of which is to purchase a resale. I am also looking at other areas, some on complexes and some not. I'm trying to understand the whole market before I make a decision on the first deal.

Olly...which are?