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Turkey & Florida

BuyAssociation.co.uk Property Editor Paul Collins tackles your questions on buying overseas in some of the most popular locations, and advises on how to stay safe.

Buying in Turkey

I am looking to purchase a new apartment in Gulluk, Turkey, and have a couple of questions. Is this a good location in which to buy? Is a new marina being built here? Is the rental market oversupplied? The agent is talking about 30% capital growth in year one. Is this feasible? Are UK flights to Bodrum going to increase?

I'll try to deal with your questions in order, and hopefully this should give you a good idea as to your next steps on the path to buying overseas. Firstly, Gulluk is one of the more up-and-coming areas of the Bodrum peninsular, so could offer some good opportunities for both buy-to-let investments and cheaper family holiday homes. The area is well-served by flights from the UK, a situation which is likely to improve even further as some of the low-cost airlines begin to spread a little further afield - easyJet began flights to Egypt this summer, for example.

I don't have any information about a new marina being built, but that doesn't mean that it isn't happening — it may just be that details haven't yet been released in the UK. It is fair to say that the rental market in some parts of Turkey is a little over-supplied, but Gulluk does not yet seem to be afflicted by this. One of the keys to successful renting is to try to buy 'best of breed' properties. These are the best property of each type on a development, as they will always sell and rent faster than other properties. The best one bedroom apartment on a development should rent more effectively than a mediocre two-bedroom, and gain in value more efficiently.

Thirty per cent growth per year sounds more than a little optimistic, so make sure you examine these figures carefully. Ask why the builder is convinced it will go up so quickly, ask for evidence of what he is saying, ask as many questions as you can, and this will give you a good idea as to the quality and professionalism of the developer, as well as the investment potential of the area.

Boat best bet?

After another holiday in Turkey we are thinking of buying a gulet which is berthed in Marmaris. We have done the necessary investigations but are curious of any hidden pitfalls we may have overlooked.

This could be a great way of buying in Turkey, and you will certainly have a unique home which should have an advantage over others should you wish to rent it out. It even gives you the opportunity to move to another area without selling up! I think the biggest consideration you need to make is for the maintenance of the boat as it will need to come out of the water periodically to be checked, resealed and repainted.

Aside from that, it is just the eccentricities of living on a boat that you need to be sure you are happy with — the fact that water and heating systems are completely on-board, that you will be moving very slightly all of the time, and not having any flat surfaces at all!! Otherwise, you have to consider the boring bits like making sure you can fund it independently as you won't be able to get a mortgage on a boat, making sure the legal agreement of sale is watertight (pardon the pun) and that you have the appropriate registrations and permits.

Capital gain

I have paid my first and second installments for my apartments in Turkey. Now the developer wants €40 for military clearance fee. My question is, I want to sell these apartments and was told by the developer to give them four months notice before completion. Will I be liable for capital gains tax?

I'm not sure why the developer wants to have notice of your selling the apartments — you are free to do what you want with your property and assets as far as I can see – unless they are handling some of the registration of the properties and the legal aspects for you.

You will be liable for Capital Gains Tax on the apartments if you do sell them and make a profit as you haven't owned the properties for more than five years, which is the point at which you would qualify for zero tax on the capital gain.

The fees for the military checks are normal for the purchase of any property in Turkey and may take a few weeks to come through, depending on what time of the year you submit them. So long as you have the appropriate paperwork in place, there should be no significant problem with this.

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Page 1: Turkey & Florida
Page 2: Finding Florida

Related Articles

• Buying a Property in Turkey
• Buying a Property in Florida

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