Calis Beach and Fethiye Turkey Discussion Forum
Property For Sale in Calis Beach & Turkey => Buying Property in Calis Beach, Fethiye and Turkey => Topic started by: happy_flyer 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.
-
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.
-
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
-
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?
-
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 :)
-
Thanks happy_flyer - that's what I thought.
-
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
-
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.
-
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.
-
500 - 1000 pounds a month rental in UK.
Long term rental in Turkey 500 - 1000 TL after the expense of buying it.
-
quote:
Originally posted by jackstee
500 - 1000 pounds a month rental in UK.
Long term rental in Turkey 500 - 1000 TL after the expense of buying it.
Based on purchase prices of what exactly? Those two figures mean nothing!
I tend to avoid these topics as I would hope that I would get a private message from the asker if they wanted my opinion on buying in Turkey but as the "rent for a year" posse are out, I don't wish to disappoint you all through not giving my predictable alternative view ;)
Firstly I must be honest and say that renting out is best suited to those looking for that type of rental and income - I don't think it particularly suits those amongst us who consider it due to them having an empty property that hasn't sold. Ask anyone in that situation and they would tell you they'd rather sell and stick the money in the bank.
But there are opportunities and great advantages to buying to let, even these days, be quiet for a moment, yes there are!!! As a long term investment I still see Calis as a good investment - yes I am still biased/deluded perhaps but let me at least explain.
At the property exhibitions I do not see countries that offer anything like what Fethiye offers - can anyone name somewhere else where you can buy a 2 bedroom apartment with pool, 20 minutes walk (MAX) from the seafront prom, in an established and attractive area that has something for everyone (I mean Fethiye, including Calis) for £40k? Anyone? That has flights from nearly every UK airport from the likes of Easyjet, Jet2 and Thomas Cook? Anyone?? I remember Cape Verde arriving on the scene at A Place in the Sun exhibitions - I'd never heard of it but the prices looked brill - sadly you couldn't get a flight to it - unless you were on one of the two a week out of Gatwick.
So we'll stick with our 40k because it's easy maths. Let's say you have it available for 26 weeks rental (May - Oct) and you fill a meagre half of those at £250 a week. £3250. Each year. Rates should go up but let's keep it that they won't for a worst case scenario. Let's put costs at £750, again to keep the maths simple - that's nearly £60 per rented week which is to cover AC (and it will) council tax etc. A net profit of £2,5000 per year.
Now of course the 40k, tucked away in the bank, would make £3600ish net but for how many years - give it 10 years and you can probably half that to £1800.
So the buy to summer let option will pay £50,000 over 20 years and you still have the capital investment, the apartment - which will be worth what in 20 years in an ever improving area. Even if it's still 40k you end up with a return of 90 grand, or £4,500 per year - in a country you can't work in - not too shabby.
What are people proposing to invest in back in the UK? Not many investment properties around here for 40k - 120k maybe so you need to treble your investment, meaning you need to treble your return. That means you need a rental income of £7,500 nett - so you will need to rent out at £625/month - is that possible on a property worth £120k? Not in many parts of the UK.
It's all complicated and I am sure people will say you can't guarantee 13 weeks rental (a good number of my CalisVilla owners can mind you) and that there will be tax to pay, and plenty of other ways to try to undermine the figures - but ultimately, if you want an income to subsidise your retirement to Turkey, all I am saying is that you can't work and it isn't correct to write off investment in rental properties as no alternative to sticking your cash in the bank and no alternative to not buying a place for yourself and spending the rest of your life paying rent - rent in Turkey goes up as regularly as clockwork as a reaction to inflation. Imagine you rented till the day you croaked. What will you need to be paying in 2032? How much will you have paid in dead rent over those 20 years? Renting for a year to see if you like it I can understand, but avoiding buying property because there is easy money to be made at the bank is very short sighted. It's straight forward. One (the bank) will certainly continue to deliver a reducing return over time, and in these times where there are bargains to be had, the other at least has the potential to do the opposite.
Not the answer, just alternative food for your thoughts...
Scunner
Unbiased Estate Agent ;)
-
Different things work for different peoples situations, personally i would want to spend time getting to know the area and what constitutes a 'good build' to decide where best to purchase.
My biggest concern would not be the money in the bank versus rental income/ purchase gain scenarios - they will change back and forth, people forget currency exchage rates can devalue lump sums rapidly and that money in the bank might not be quite the best thing in the current financial climate.
Make sure you understand the inheritance law, property being an immoveable asset, also the tax laws regarding renting out and capital gains.
Cover your bases, do your homework, stay off the Efes and dont buy off a waiter, guy you met in a bar, or local taxidriver etc!!
From what I see calis has plenty to keep you happy and occupied all year round, good luck.
-
So much really really good advice, i knew i was asking the correct people.
Head down time to think and weigh up whats been said.
Shop around for quotes and see whats on the market, really exciting times ahead.
Thankyou all so so much.
If you can think of anything else to numb my mind then please fire away, i'm sure i can take it, good or bad lol.
Scunner when we do get out there i hope we can meet up and keep in touch.
-
And some others you know who you are lol