Any advice in investing in real estate in Turkey

Hello,
I will be going on a business trip early summer to Turkey. I have heard and read soo many great things about the potential in Turkey for real estate investing. Is anyone on this board familiar with overseas investing or more particular in investing in Turkey? Thanks John

Edited: 06/26/2010 at 04:06AM

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Oct 23 '07, 03:51 AM

Hi John,
I am very familiar with foreign investment in Central America, check out my website. The best advice I can give you, and it would apply to any foreign investment, is to do the research on the developer of the property!

It is very easy to believe what someone tells you about a development or a property only to be disappointed when it does not happen. Make sure the developer has a track record in that country and look at those previous developments.
Enjoy Life!

Edited: 06/26/2010 at 04:09AM

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Oct 23 '07, 06:29 PM

Originally posted by "ftball2003"

Hello,
I will be going on a business trip early summer to Turkey. I have heard and read soo many great things about the potential in Turkey for real estate investing. Is anyone on this board familiar with overseas investing or more particular in investing in Turkey? Thanks John

Turkey is not a country I have checked out. I have some info but lets not discuss it as it is very thin.

[list]Check the laws for how title is held. Are there restrictions on ownership.

Check out the mortgage assumptions. Some countries do not really have financing for property or for investors buying property. Even if the country has a well developed finance market for housing do you qualify as a foreign national?

Check out the history. Some countries have issues with prior events. Jewish property and the Nazi's, Cyprus and Greek claims, Communist countries and ownership transfers. You would be surprised at the number of places where it is not clear who really owns the property.

Inheritance. In France the rules are not what some would expect. There can be many residual claims from long lost family members so just getting the right person to sign is impossible.

Taxes on income, property taxes and capital gains if they have that idea.

Rental laws. One country sets the minimum as 3 years with impaired rights of eviction during the winter (it is cold out so a tenant hardship even if they are not paying rent to the landlord).

Transfer taxes. 4% to 10% tax on the transfer is not all that uncommon in some countries.

A & B money. Intentionally mis-reporting the sale price to avoid taxes.

This really harms the ability to refinance or value a property as the public data is not reflective of the deals being done.

Are the deals publicly recorded? Some countries do not disclose transfers so you can not easily comp a property.

MLS like facilities? In many places there is no central way to find what is on the market.

Agent fees. Who pays, who does the agent work for and do agents work together. In many markets the buyer does not have an agent. Oh, agents might not be licensed or otherwise regulated.

There can be special taxes or restrictions on holiday homes.[/list:u]

Watch out for your assumptions from the US. Learning what you do not know you do not know is critical.

John Corey

Edited: 06/26/2010 at 04:09AM