Job Discussion Forums

[sanpedro72]

My next choice in a place to work/live is/was partially dependent on my ability purchase inexpensive real estate. The idea is to live in one place (covered by the employer), purchase another and rent it out (list with rental/travel agencies) for extra income.

1. How easy is it to get a loan from a Turkish bank and how fair is the general interest rate?

2. How far would $30K USD get me in purchasing a furnished condo in areas ripe with extended holiday travelers?

Thank you in advance,

Jacob

[keitepai]

30 K does not sound like enough to me as banks ask for more deposit ie Garanti banks website states they will lend no more than 65% of the total price. Their term is 240 months at the longest - Turkish people traditionally have short mortgages of about 5 years but this is changing to be more in line with other EU countries (as they push to become members!!) Sorry interest rates are a complete mystery to me.

If you want to look on 'mymerhaba' website there are some self proclaimed property experts on the forums - I am living in rented accomodation in Istanbul provided by the school so I am no expert on mortgages.

There may be some restrictions on renting out accomodation from the banks - you can check this out on their websites they have them in English. Also, properties in tourist area's may not be able to be rented out all year as most people only go during July/August. Summer houses tend to sit empty all year then get used for a few months.

Istanbul is expensive but there are places in other area's that are still reasonable. Teacher friends of mine own property in Iznik, Bodrum, Kas that they bought outright one for 100K US, however these were bought a few years ago now and prices have gone up a lot. Places can have very dodgy plumbing, electricity too - some houses in Turkey are being held together by bits of string and duct tape!
So, best to view first otherwise you will get a bad deal for sure

[sanpedro72]

Well I have made an assumption that the real estate is a little like Thailand. Expensive in the main cities and tourist areas. Thought maybe 30K could be 1/3-2/3 of the total price of a flat...a small condo or something.

Well the other thought is to work in another country for a higher salary and try Turkey a year later. I could possibly save $10k or more working in Oman or UAE. I really don't know what to do but I'll try this website you recommended.

Thanks for responding.

[Otterman Ollie]

What you have will be enough for a deposit, but unless you have a Turkish partner or Tukish citizenship getting a mortgage will be extremely difficult or expensive.
There are still a number of properties to be found that may be bought for less than 60 or 70 thousand ytl but these will need quite a bit of work and there is always the danger you will have to wait a while to get any reasonable return on your orginal investment.
The idea of working in another higher paying country and getting more funds together seems to me a better way, if you can get a gig that includes accomodation and flights and meals that will give you a lot more of your income to save. It used to be possible to get those type of jobs here but they are harder to find these days. It took me 8 years to get on the property ladder and I didn't have the amount of cash you had, so good luck.

[sanpedro72]

I still have the feeling there Turkey real estate could be inexpensive... Maybe buying a seaside condo could be a solid investment, one I could rent out while living "paid-for" housing by school. Then rent it to holiday tourists. If I can legally get a loan at a low percentage rate and/or have a Turk backer, all the better. If I am legally living there, wouldn't it be easier to get a loan and receive better, more honest treatment from a real estate agent? I figure I could go upwards to 90K USD for total selling price. How realistic is it to save 1,000 YTL or more out of 2,2000 YTL just living 40 min south of Istanbul? I don't know about meals but the flat and all utilities are covered. Comments? Many thanks, Jacob

[keitepai]

Hey Jacob,

Sorry for the misinformation re house prices! I am obviously only talking to people within the Istanbul bubble
I think you should be ok on the amounts quoted above especially if you're utilities & housing are paid for.

Food is expensive in the 'posh' area's around Istanbul (I am also out of the city a bit). You can find the local fruit & vege markets in your area to save money.

Good luck with your move!

[sanpedro72]

I am just looking for something on the coast...maybe go through an agency that will facilitate the purchasing and the holiday renting process (to others). It make better sense in places like Thailand, but well the Thailand isn't a go for pay. At least in Turkey I could afford pay a monthly mortgage if it's around 500ytl or so.

Istanbul could be a different story. My current job offer there is in Bahcesehir about 40 min SE of the city.

[keitepai]

Still think you will be ok if you are only supporting yourself for food. I don't know that area at all but there will be people to help you find the good food places. We don't save much but my salary supports a family and we have to pay our utilities which are really high in winter

A word of warning though........real estate agents are slime balls (as they are all over theworld I bet) and will rip you off any chance they get. I have had some dealings in the rental market and it is unbelievable the outright lies some will tell to rent a place.

Good luck

[scot47]

"assumption that the real estate is a little like Thailand"

Why like Thailand rather than like Uruguay or Iceland ? A strange way of looking at things !

[tararu]

Check out
www.sahibinden.com

www.hurriyetemlak.com

the amount that you have will certainly be enough for a deposit. There are places that can be bought for around 60,000 or 70,000 ytl new and old.

[calsimsek]

Interest rate are moving up. Rates from 18 p.a to 23 p.a are quiet normal.

The deposit rate you need will depend on the back and how long a loan you want. Here deposit ratios range from 25 % to 40 %.

Buying on the cost means a lot of different things depending on which cost you are talking about.

Marmaris-Bodrum-�esme-K.Adası ect along the agean sea are a lot cheaper than Antalya. (Forget Bodrum for some thing to rent out you need at least 80.000 to 100.000$)

Your best bet at the moment is around Didim. Prices are flat and there is a lot of demand from the U.K.

[Otterman Ollie]

I concur with the last poster, didem is a cheap area as is Kusadasi just check the pages of sunday papers there is a lot of property on the market at the moment and prices will fall in the winter. Play a waiting game and dont be afaid to do more than a bit of leg work. There are still a lot of bargains to be had.