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As Turkey continues to progress as one of the most sought after emerging markets for property investing, several questions repeatedly arise from potential buyers considering the location. Below is a compilation of ten of the most frequently asked questions about Turkey as a property investment location.

1. What makes Turkey an interesting investment market?

Currently Turkish real estate is one of the strongest emerging international market growth sectors, showing excellent potential for continued demand and expansion. Capital growth for mid to long term investments, along with good rental yield potential are attracting investors to the country’s property sector.

Coupled with the country’s domestic market, demand for property currently exceeds supply, resulting in fast increasing real estate prices. Growth within the tourism sector and interest to re-locate are also areas creating further demand and a strong growth market.

The country features a youthful demographic with a highly skilled workforce with intentions to enter the real estate market, placing demands on supply and improvements to the mortgage financing sector. This market represents strength in the future re-sale and letting markets.

Turkey’s steadily expanding economy and government integration for bringing the country in line with EU accession requirements allow for strong future growth prospects.

Along with the excellent investment opportunities presented in the Turkish real estate sector, the possibility of gaining admission to the EU in the coming years is further fuelling demand. The pre-EU entry prices offer a competitive position within the European market.

2. Are there any restrictions for foreign buyers?

Most nationalities are freely able to purchase real estate in Turkey, although restrictions apply to some nationalities. Those who fall into a restricted category will require a legal ‘Letter of Invitation to Purchase’ prior to entering the country. If unsure, details can be obtained from an embassy or consulate.

Other restrictions relating to all foreign buyers are real estate purchases within restricted areas, such as military zones, along with restrictions relating to property over 30,000m2 without obtaining a special permit.

3. What are the associated purchasing costs?

Purchasing costs will amount to approximately 5% of the property sale price. Registration and Notary fees are between 0.1% and 1%, while Stamp Duty fees are 0.75%. Title Deed fees have temporarily been reduced from 1.5% to 1% to assist the housing market during the current economic climate.

4. What are the legal fees?

Legal fees are around 2% of the purchase price, with prices varying between different legal firms. Half of the legal fees may be required when signing the purchasing contract and the remainder on completion.

5. What are the taxes I can expect?

If opting to sell the property prior to completing 5 years ownership, capital gains taxes will be charged at 20%. Following 5 years ownership the property is free from capital gains. VAT at 1% is required on real estate with a surface area greater than 150m2. Other taxes include residential real estate tax is 0.1% of the property value, and rental income tax where different payment method options are available to suit the owner’s preferences.

Rental income is charged at between 15.6% and 24.8% payable by a ‘deduction method’ exempting expenses such as utilities, insurance and administrative costs, or the ‘lump sum method’ deducting 25% of the gross income.

6. Will I be able to arrange a mortgage?

The growth of the real estate market has opened up mortgage financing on Turkish property to foreign buyers in recent years. Both fixed and variable rates can be arranged, with financing available for both re-sale and off-plan properties.

7. What is the military clearance requirement?

Military clearance is arranged by the buyer’s solicitor prior to completing the property purchase. The documents are required to ensure the property is not located within a restricted zone including military land, or other land protected for cultural, historical or ecological purposes.

8. What is a typical payment schedule?

While payment schedules may vary between different developments or agent’s requirements, a typical payment schedule will require a holding deposit, reservation payment and reminder on completion. Holding deposits are often approximately €3,000 or £3,000, while reservation payments may vary between approximately 10% and 40% of the purchase price.

It is also possible that a development may have staged payment requirements throughout the construction process. Re-sale properties are likely to have different payment procedures to off-plan investments, with the full price payable on transfer of the title, minus the holding deposit.

9. What is the time zone and currency conversion rate?

The time zone of Turkey is GMT +2. The local currency is the Turkish Lira (TRY). As the currency rate changes, the following conversions should only be used as a general guide:

1 EUR = 2 TRY / 1 GBP = 2.4 TRY / 1 USD = 2.5 TRY

10. Do I need a visa to visit Turkey?

Depending upon nationality and intended duration of the visit to Turkey, a visa may be required. Contacting an embassy or consulate prior to arranging travel plans is advisable for details of full requirements. This will ensure complete and up to date information to avoid unpleasant surprises.

The Fourteenth Edition of Real Estate Finance and Investments prepares students to understand the risks and rewards associated with investing in and financing both residential and commercial real estate. Concepts and techniques included in the chapters and problem sets are used in many careers related to real estate. The material in this edition is also relevant to individuals who want to better understand real estate for their own personal investment and financing decisions. The Fourteenth Edition is designed to help students learn how to evaluate the risk and return associated with the various ways of investing and lending. Upcoming students who are interested in this field can use this book as a guide to perform the right kind of analysis to make informed real estate finance and investment decisions.

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Just turn on the television and you’ll see that real estate is hot. Home renovations, home flipping, buying and selling – all are topics of reality shows that many tune into with fanatic fervor. When it’s all over the television, then you know it’s everywhere. It’s real estate, and it’s a great investment opportunity. But what is the very best place to invest in real estate?Insiders Real Estate

For those wanting to make fast cash in a quickly-growing industry that even soaring oil prices can’t slow down, real estate is the way to go. While the stock market may be tricky, politics may get sticky, and the price of driving makes you feel icky, real estate can leave you lucky and in the money. People are still interested in buying and selling their homes, both new and remodeled. Those who can handle themselves in this market, and learn how to make a profit, can find a very lucrative career in the arena of real estate. But to succeed, you’ll want to know the best places to invest in real estate.

Where are they? First, think about the kind of profits you want to make, the kind of properties you want to sell. Do you want to sell million-dollar homes, or affordable properties that small families and couples can share happily? Do you want to do renovations, or simply buy properties and sell them for a quick turnaround? Will you be flipping properties, or just putting a little make-up on them before you sell? In order to find the best place to invest in real estate, you have to decide what kind of a real estate investor you are. And you have to know how much money you can reasonably afford to spend.

Don’t sink every last dollar into your real estate investment, and always leave room in the budget to spend more. Unforeseen problems may arise, and you may have to pull out the check book even when you don’t want to. As the investor, the bulk of the monetary burden will fall on your shoulders – so make sure you can cover it. Some properties need more work than others, before they’re ready to be purchased and lived in by the general public. The better your property looks, the better your chances of getting a great profit. Knowing how much you can afford to spend is a very decisive factor when it comes to where you’re going to invest that money. The best place to invest in real estate is always going to be the place that you can afford.

Also, check out the surrounding properties in any area before you buy. Areas with very low property values are not the best investment idea, as you stand little chance of getting large profits. Desirable locations are neighborhoods with high property values, areas close to schools and parks, homes that sits in an area that you, yourself, wouldn’t mind living in. If you take one look at a neighborhood and say “no way,” then any potential buyers are probably thinking the same thing. The best place to invest in real estate? The place that you think you would live in, too. The place that you can afford. That’s the best place to invest your hard-earned dollars.