investment and hols property

[network]

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

[Steve (redding43)]

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

[mikeh]

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.

[McGroogle]

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

[braveheart]

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

[stoop]

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

[Anne]

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

[Cavfan]

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.

[loz]

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.

[number2]

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