Author Topic: Pit Falls of buying 2 properties  (Read 4905 times)

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Offline happy_flyer

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Pit Falls of buying 2 properties
« on: January 30, 2012, 20:39:08 PM »
Hi everyone, our mortgage is finishing in March and we want to come to Calis to live.Now what we have in our head ( ok mine lol) is to sell up in uk and buy two places in Calis ,one to live in full time and one to rent out to provide the life style we hope is going to happen. Well enough to get by would be good.
Are there any pit falls to buying two places at once or is it pretty straightforward just like uk but twice.
We were thinking of keeping a house of some sort in uk and renting it out through an agent but that seems to be very expensive.
I figured if we had a second place in Calis then at least i could do any work to it myself or be on hand to supervise.
Anyone done the same ?
Anyone wish they hadn't?
Thanks in advance for the advice.

Alan.



Offline Jim Fraser

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Pit Falls of buying 2 properties
« Reply #1 on: January 30, 2012, 21:22:49 PM »
The theory is good - but have a carefull look at the sums.
The costs - buying price, furnishing, insurances, tax, wear and tear, who will you be renting too - long term or holiday rental, how many weeks rental can you get.
Now compare that with what the money could get you in a high interest bank account.

 

Offline Highlander

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Pit Falls of buying 2 properties
« Reply #2 on: January 30, 2012, 21:28:20 PM »
I won't be able to answer but am just curious. Are your options

1. 2 places in Turkey or
2. 1 place in the UK and 1 in Turkey or
3. 2 places in Turkey and 1 in the UK

Offline happy_flyer

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Pit Falls of buying 2 properties
« Reply #3 on: January 30, 2012, 21:49:48 PM »
Highlander 1 or 2
Jim thanks for those thoughts, I must confess i didnt actually think the interest on that amount would be that much but obviously i will be looking into that.
Do you happen to know if the interest rates are better in uk or turkey for that sort of money?

Offline Karennina

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Pit Falls of buying 2 properties
« Reply #4 on: January 30, 2012, 21:51:58 PM »
I also cant answer your question happy flyer, but what I can say from my experience when we bought our apartment in Calis five years ago all we wanted at that time was to be in Turkey all the time, this was not an option due to commitments and also still having to work to fund Turkey. The last five years have in a way been a learning curve, we now know what we want and want we dont want.Personally I would never cut my ties totally with the UK,be whether we just kept a small property in England,it is alright buying two properties and living off the income from the rental but if you decided in the future to come back here would you would need to be able to sell the properties to start again back here.There is so much property to choose from I dont think we would have much chance of selling, we cant believe the amount of properties that have sprung up all around where we are in the last five years. Also I went once in February and never again, I have never seen rain like it,if I had been there for January and the weather they have had I know I would have hated it, as Supercabby said the house's are hard to keep the heat in, maybe they are built somehow to keep the heat out for the intense heat of the Summer.My ideal would be to have April to July then back here for the intense heat of August then back in September to mid November and winter in blighty.Just my thoughts but I think with hindsight it is so easy to get carried away with it all in the beginning it is an exciting time.Good luck in whatever you decide to do  :)

Offline Highlander

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Pit Falls of buying 2 properties
« Reply #5 on: January 30, 2012, 21:52:52 PM »
Thanks happy_flyer - that's what I thought.

Offline usedbustickets

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Pit Falls of buying 2 properties
« Reply #6 on: January 30, 2012, 22:43:11 PM »
Alan I'd endorse the view, why not rent for a time and see whether you really like it, perhaps even renting out your UK place?  For myself I can see the sense in keeping somewhere in the UK.  If however, perhaps after a time of rental, you decide to move over to Turkey - as I intend to do - I'd support Jim's advice, look very carefully at the sums particularly of owning a second place for rental, its a fixed asset that may be difficult to sell when you want or indeed need to sell it.

And yes interest rates look interesting compared to the UK, but whilst I suspect they will always be better than the UK, you can't ignore the exchange rate and the inflation rate in Turkey, compared to the UK.

So do your sums very carefully, and my final advice is if you can afford it, all costs taken into consideration, keep somewhere in the UK, if only a small flat.  Good luck

Offline Jim Fraser

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Pit Falls of buying 2 properties
« Reply #7 on: January 30, 2012, 23:02:08 PM »
HF you will get 8-9% after tax in Turkey on a savings account - but as mentioned you have to take the inflation rate into consideration.

Offline loz

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Pit Falls of buying 2 properties
« Reply #8 on: January 31, 2012, 01:19:50 AM »
High Flyer, keep your property in the UK, rent for a year in Calis for a year.

To ensure you earn good money from your rental. Marketing: A good website, the cost of advertising, consider these factors against- should you get 12 weeks rental a year (how many owners actually achieve this?) would it pay?

Bills. 2 lots of water rates, 2 lots of electricity, probably 2 pools to maintain, 2 insurances, one for letting, 2 lots of maintenance i.e repairs, up keep etc.... Also renters will not be careful when using the air-conditioning (get your wallet out).


Will the property you purchase be worth half as much in 5 or 10years time compared to a property in the UK in 5-10 years?
So many factors the consider.

Offline jackstee

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Pit Falls of buying 2 properties
« Reply #9 on: January 31, 2012, 11:49:09 AM »
500 - 1000 pounds a month rental in UK.
Long term rental in Turkey 500 - 1000 TL after the expense of buying it.




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