Calis Beach and Fethiye Turkey Discussion Forum
Introduce Yourself => New Member Introductions => Topic started by: network on January 11, 2005, 13:49:03 PM
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HI
I am a new member and would be grateful for some advice. My husband and i are looking to buy in Turkey for holiday purposes (we have a young child) and good investment potential. Must at least pay the mortgage. We are thinking of Calis but any advice please would be appreciated???
Many thks
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Hi network
You will find plenty of info here. Just use the search facility
We of course will be bias but hey - it is a fantastic place
As far as investment goes, it depends how big your mortgage is in the first place
Regards
Steve
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well actually we cant recommend Calis on here at all , we want to keep it to ourselves!!!!!
Joking aside if you are borrowing a lot to buy the property then take care,it would be wiser to say if you manage to let the proposed property then its a bonus. There are hundreds of properties for sale all shapes and sizes and a lot of buyers think they may be able to let, well IMHO that remains to be seen.
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Personally if I was to buy a property with a view to paying off the mortgage by renting it out, I would be very careful.
The renting season is from May to October ( 6 mths )and the beginning and the end of these months are difficult to rent out anyway. So that really leaves June, July, August and September as being the prime months for renting out. Then you have to look at whether you can recoup the expenditure during these months. This is of course if you can in fact rent out all weeks during this period -experience tells me that with the amount of flights arriving and leaving on different days that overlap of dates is bound to happen. This will mean 3/4/5/6 days that are not going to be taken and therefore no rent.
To give you an idea we bought in Jan 04 and got 3 weeks of bookings last year. This was a bonus as we bought knowing that renting out to fund the outlay was not a problem to us. OK it probably wasn't marketed the best that it could have and with more work we could have had more rentals. But thats not why we bought the property. The point I am making is that if you do get full rentals throughout the season it will not happen in the first year and will take time - how long? - don't know.
Another consideration is that there a lot of the owners now in Calis and a lot of them want to rent their properties out. So the area has become plentiful and competetive in the rental market.
On saying all of this Calis is a lovely place, excellent food, good company, fantastic people and even now with prices increasing on property is still a good investment.
Hope this helps.
McGroogle
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If anyone is buying for the purpose of business (covering total costs/mortgage or whatever) then the only place to go are the Canaries where you have a twelve month holiday/business season
Owing to climate and logistics, Turkey does not offer similar opportunities
Having visited the Canaries many times (and loving the islands) we were tempted with the 'business aspect' but finally decided on Turkey.
It eventually depends on what each individual is looking for in life
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Paul,
I would be careful if you are looking to borrow large amounts in order to buy in Turkey. A mortgage of say £40,000 borrowed at 5% (which would be a good rate in today's market) would cost you £2,000 a year in interest alone (without paying any capital off) this would equate to renting at £200 per week for 10 weeks just to break even!
I agree the Canaries are a better option for those who want to make a business of it (if borrowing to purchase). The Algarve too offers all year round rentals due to the golfers - out of season being cheaper and cooler to play in.
Stoop
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Hi Paul
When speaking to our agent on the same subject he advised us (very wisely IMHO) that if you can secure 12 weeks of rentals during a season you are doing very well.
You only need to looks at McGroogles experience to see that if will be quite difficult, for the first year or two at least, until you hopefully build up some sort of business.
I'm not at all sure that Turkey is the place to make your fortune as far as holiday lets are concerned.
We bought our place last year. If friends or family want to rent it from us for a week or two cheaply then to us that's a bonus that will help towards the ground fees ect. If not then we fork out ourselves.
Good luck whatever you decide.
Anne
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Ageree with all thats been said. I wouldnt want to be reliant on holiday lets to pay for our place as the season is so short. Also hotels are still really inexpensive and depending on your target market it might be hard to compete.
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Hi Network, welcome to the forum, I also agree that to buy a property as an investment and use the rental income can be risky, however, there are people who have and are doing this successfully but I would imagine that it may be aggressive marketing on their part. you have to ask your self can you afford the extra £300 per month on your existing mortgage if the property did not rent, also resales do not move as fast as new or off plan, due to the competitively price comparison.
Good luck in your quest.
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Hi Dippey, twist a bit harder, welcome network, I just lock my appartment up & go there as often as pos, I don't rent it out cos all my belongings are there, I can travel light, just hand luggage, it never works though, cos you take cans of beans etc. & it takes you over the limit for hand luggage, it's a pain in the backside. Alan
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Dippey,
Do you want a job in Financial Services???
Network,
I hope we haven't put you off buying in Turkey as it has some great plus points. It's just that borrowing and expecting to cover you costs through renting might prove difficult depending on what you borrow and how agressive you network your property. It can be done though.
Just as an example - we have let about 6 weeks out already for this year and have not really tried that hard. I know we have at least 4 more weeks possible rentals. This should easily cover our costs in Turkey - but we do not have a loan so it's all a bonus really.
We might even get enough to pay for our flights this year 8)
Stoop
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Dippey,
What can I say?
I've just been re- trained due to de-polorisation and evidently I'm now a Financial Consultant.
I too have some letters after my name but haven't yey worked out what they mean!
Stoop
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Dippey,
I shall be very careful how I answer that as I know bf reads these pages and I do not know how big he is--lol.
It would be lovely to meet you BOTH for a beer in Calis sometime this year so that we can discuss our relative professions.
I think we've gone a bit off topic here and should get back on track b4 Crabbit gets crabby with us!
Stoop
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Dipps,
Well done! I take my hat off to you for taking the risk and going for it! Just one question - if you change your mind about moving to Turkey, how do you get the money back to the UK without arrousing our wonderful taxman? Just a thought as not everyone who might want to follow your lead will want to live in Turkey full time.
Stoop 8)
ps -- based on your figures it might be better to just stick the money you borrow for your dream home into a Turkish bank account and let your investment grow without all the hassle of buying property. Just a thought -- sorry Scunner and Heidi.
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A cautious approach required?
ISTANBUL - Turkish Daily News
Global financial management and advisory firm Merrill Lynch said the overvalued Turkish lira was pushing Turkey's current account deficit higher and that rising U.S. interest rates could attract foreign currency, now used to finance the gap, putting pressure on the Turkish currency.
In a report on Turkey's foreign currency situation, the firm said that although it expected no large depreciation, there was room for caution.
It said the Turkish lira has been very strong over the past few months, despite the persisting deterioration in the country's current account balance and waning enthusiasm for Turkey's European Union membership bid in the aftermath of the French and Dutch rejection of the proposed European Union constitution. Although foreign investor confidence in Turkey was high, a delay in the start of membership talks, scheduled to start on Oct. 3 would hurt investor sentiment, the Merrill Lynch report warned.
Stoop