In a surprising turn of events, UK property investors aiming to cash in on the buy-to-let sector are now looking at Turkey following a change in UK tax laws announced in 2015, that entered into force in April 2016.

Whereas the UK property market previously reported that 14.5% of all mortgages in 2015 were for buy-to-let properties, this is now expected to dip following the rising stamp duty costs that could leave potential landlords seriously out of pocket. A recent article by the highly respected UK Spectator Magazine gained enormous attention after they wrote….

“Buy-to-let investing just became a very, very bad idea. The maths has changed and the Chancellor and the Bank of England could well change it further. Anyone thinking of getting into buy-to-let today should think again.”

Instead, property investors, realising the price of apartments and villas in Turkey are low when compared to the UK average, are assessing buy-to-let properties in coastal resorts of the country with an aim to shift their clientele from long-term letters to holidaymakers.

Tolga Ertukel from Turkey Homes, who specialises in Turkish properties for UK buyers, says enquiries regarding buy-to-let properties increased when George Osbourne announced the significant changes that were to take effect.

“The recent stamp duty increase in the UK for buy-to-let investors to 6% from 3% is only pushing UK investors to look elsewhere. Turkey is proving to be an attractive option because, in some parts of London, the average price of property is £500,000 while in Turkey, that amount gets you a new, luxury seafront villa with all modern cons and you will still have change left over.”

Citing this as the rise in interest from buy-to-let investors, for the upmarket resort of Kalkan, he further goes on to say…

Kalkan properties currently project the highest potential for return on investment. Since Turkey’s real estate market is still relatively in the early stages of growth, long-term prospects in this town are a big lure because unlike other districts, there is not an abundance of land left to build on. Kalkan’s reputation as an upmarket resort, with a high standard of buildings of which most have private pools, idyllic sea view, and all modern facilities and local amenities, also ensures potential as the ideal holiday rental.

Turkey homes kalkan 2016
The delightful Turkish town of Kalkan is a popular destination

A sea view villa in peak season can net weekly rentals of £1500-£2000, while the more luxurious properties, can reach a rental price of £5,000 per week or more. As an example, this 4-bedroom villa in the Komurluk district achieves a weekly rental of £2,750 per week, a huge difference from the average price of monthly rent in the UK. So with a seasonal income gained within roughly 16 to 18 weeks, of approximately GBP 30,000, this property has over 8% rental yield.

Potential investors, with lower budgets, are instead turning to the nearby famous district of Fethiye, where properties are still netting an average of 8% rental yield, such as this family home in the small town of Ovacik.

Turkey Home Ovacik 2016
Turkey Homes offers this wonderful villa in Ovacik for sale

While Tolga is pleased to see the huge interest from UK investors in Turkish buy-to-let properties, he also has some strong purchasing advice for buyers who want to achieve maximum high rental yield.

“Generally, the newer the property is, the more interest it receives in rental enquiries. Older Turkish properties and traditional villas often lack space that is an essential requirement for potential holidaymakers. The standard of Turkish Building regulations and legal requirements has also risen dramatically over the last 15 years and this shows instantly in the interior and exterior finishing.”

He further says that apartments on a complex with a full range of amenities such as security, pool, and games rooms also make ideal holiday properties but potential owners should familiarise themselves with the complex committee, to ensure that all communal maintenance is being carried out properly.

Otherwise known as the Condominium law, the committee governs aspects such as day-to-day running, how money is spent, and penalties incurred for nonpayment of the maintenance fee. As part of their services, Turkey Homes often assist buyers with getting to know this area of owning property in Turkey. After all, a communal complex with an empty pool and dirty games room or gym won’t encourage potential holidaymakers.

Tolga Ertukel the founder of Turkey Homes says…

“The days of buying a property in the Fethiye-Kalkan stretch is not just about a place in the sun anymore. Now buyers want to benefit from the healthy rental market hence we have also adapted to include rental management services as part of our business to cater for this current trend.”

 

This is an advertorial sponsored by TurkeyHomes.com and the views and information are as supplied by them. Fethiye Times does not endorse advertisers.

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