Buy-to-let property market in Turkey appeals to UK property investors
As a change of tactic, it seems as though UK property investors are now showing an interesting in the buy-to-let market in Turkey following the change to certain tax laws in April of this year.
In the UK, during 2015, almost 15% of all mortgages were obtained for buy-to-let properties but this is likely to drop given that the new stamp duty costs have been implemented, leaving landlords seriously short.
Therefore, investors are now looking at apartments and villas in Turkey as prices are low when compared to the UK as they look to change from long-term tenants to those looking for holiday rentals.
The stamp duty increase of 3% to 6% for buy-to-let investors is forcing investors to move elsewhere and Turkey is now looking like an attractive prospect. For the same price of an average property in London, it is possible to purchase a sea front villa with all the mod-cons and this will still leave investors with spare change.
In the resort of Kalkan it seems as though the return on investment is looking very favourable for investors. The market for properties for sale in Turkey is still growing and in places such as Kalkan it seems as though its upmarket reputation is having a positive effect. Buildings are made to a high standard and the majority of them have their own pools with excellent facilities and local amenities making it perfect for holidaymakers.
During the peak season, investors can look to achieve a weekly net rental of £1500 – £2000 with the larger properties reaching as much as £5000.
For those investors that have a smaller budget they are now turning their attention to the district of Fethiye as properties are experience an average of 8% returns. The interest from UK investors is welcomed but they need to understand that if they want to achieve the highest possible yields then new property is the way to go. Older properties are often smaller and this often turns holidaymakers away.
Apartments that are located on a complex and have access to excellent amenities such as a pool, security and games are also highly sought after by holidaymakers but investors need to be aware that the complex committee will expect communal maintenance to be completed to high standards. This is known as the Condominium law and the committee will determine what is expected on a daily basis when it comes to running the complex and where the money is spent. They will also enforce any penalties when it comes to failing to pay the maintenance fee. Ensuring that the property is correctly maintained will lure in holidaymakers because a filthy pool or dirty facilities will only force them away.
Purchasing a rental property in Fethiye-Kalkan area is more than purchasing a property in the sun because investors now want to reap the rewards from a rental market that is going from strength to strength.