Hello Guys,

I've just done a search on this forum for posts about investing in Turkey but can't find a lot, and in fact nothing much at all since 2004. Does anyone have any experience here.

My partner is Turkish and after spending some time in Turkey and looking at his IPs I became really interested in investing there myself. Unfortunately, according to my partner, Turkey does not really have a mortgage type system in place like we use in Australia (however apparently the banks are attempting to introduce such things) so I'm limited in my options....

However I still see possibilities. Property is inexpensive and building costs, materials, labour etc is cheap. Also, the government has recently introduced a type of first home owner incentive. I don't know exact details but it's something like a 30 year loan for the deposit on a home. I know there are companies who "recruit" first home owners and then start developing using this money. They then continue the development stage by stage with the home owner's small ongoing periodic payments. This way development can take many years. My partner's father works for such a company.

Since people really seem to be encouraged to take advantage of this government incentive, developers could stand to make a lot of money. I could imagine that a developer with available cash to develop these properties upfront could build much more quickly and then start earning income much more quickly... I wonder if there is some way I could get in on this type of venture... Maybe my partner, his father, another money partner and I could start a company like this....

I know I have been a bit vague and I definitely need to find out more specifics. But for now I'm just brainstorming out loud and was hoping for some thoughts and comments from you.

Hi chance,

Negotiations in regard to Turkey joining the EU are going on right now with what I believe to be a good chance of Turkey joining (not that I know much at all....). History shows that along with everything else, property values will most likely rise once this happens. Do you agree? For this reason it may be a good time to invest in Turkey.

Hello Chance,

I myself have formed a Turkish construction company.At the moment we have 80 units built or under construction.I think that by having family of GOOD friends who are Turkish would definately help(in a big way).
However having contacts and experience in construction are far more important.Why not employ a company to do all the 'donkey work' for you?
Also you will have to sell what you build to make a profit on your investment ,and this area is often the hardest!

Any advice i can give please send me a p.m

Good Luck

Andrew
ADO PROPERTIES...

Chance.
Fortunately for you. your partner is turkish therefore mortgage facility's are available to him; obviously depending on his income.
İ suggest you both talk to the turkish bank's,they will be able to give you more information,

Re your brainstorming venture into the property market.the area is very important.Some area's are becoming ( shall we say) overdeveloped. just my thought's.İm sure other's will disagree;

Chance,

Also UK mortgages are available for Turkish property(just announced).
Iş Bank have also announced mortgages for German and Belgium nationals.
The fact that many European banks have this year bought major Turkish banks is a sign the borrowing for Turkish property is inevitable.All they are waiting for are interest rates to come down further.

Regards

Ado

ADO PROPERTIES...

Turkish Mortgages are available for UK and Irish Nationals (and non-UK Nationals on a case by case basis) for either House Purchase or re-financing for Home Improvements. Mortgages for other purposes may also be considered - contact us for further information.

Type of Turkish Mortgage: Repayment basis only

Minimum: €40,000; Maximum: €200,000 (larger amounts may be considered on a case-by case basis), but must not exceed 80% of the valuation or purchase price (whichever is the lower) in the Turkish Riviera & Istanbul only. Mortgages in other parts of Turkey are dealt with on a case-by-case basis.

Proof of Income: required in all cases (can be made up of Earned Income, Pension, Investment or Rental Income. Please note however, it is not always the case that the Lender will take all or part of these Incomes into account when determining the maximum loan available). Non-Status loans are currently not available.

Term: Maximum 20 years - up to age 75

Currency: Euros & Sterling only

Current Interest Rate: from approx 5.90% fixed for 1 year in Euros or approx 6.90% Fixed for 1 year in Sterling. Fixed Rate loans over 3 and 5 years, also available.

Please note, that if the property is Rented, the Interest Rate is increased by 0.50% for all schemes throughout the mortgage term

Example Turkish Mortgage in Euros: Repayment Mortgage of approx €80,000 over a period of 20 years at an initial Fixed interest rate of approx 5.90% = approx €577.00 capital and interest per month = a total approx amount payable over the term of €141,320 including capital, interest, arrangement and survey fees
Further Information About Turkish Mortgages,
Please note, that non-status/self-certification Turkish mortgage facilities are not available through the lender. All applications need to be supported by a minimum requirement of proof of income. If employed, copies of your last three month's pay slips & your latest P60 and an Employer’s Reference together with copies of your last three month’s Personal Bank Statements will be required or alternatively if you are self-employed or Director of a Limited Company with a shareholding of 20% or more copies of your last three years Audited Accounts plus copies of Personal Tax Returns for the last 2 year & copies of your last 3 Personal Bank Statements will be required on application.

Please note that it will also be necessary to obtain a copy of your credit file via Equifax or Experian.

The Turkish lender will NOT take into consideration any proposed Rental Income from the property for Turkish mortgage purposes/repayments.

Your mortgage in Turkey is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (ie: Divorce) payments together with your proposed Turkish mortgage payments must not exceed 45% of your net monthly income.

Example: Net joint monthly income £ 2,500 times 45% of that figure is £1,125 minus existing monthly mortgage payment £ 700 – No other liabilities. This leaves a balance of £425 for a proposed Turkish Mortgage payment.

Posted as sent to me by a financial consultant.