Investor appetite for Turkish property has been riding high in 2014, showing little signs of fading as a top destination for foreign buy-to-let buyers.
It has been a booming year for tourism and with property prices still heavily discounted from peak levels, it's no surprise there has been a surge in investors, particularly in tourist areas.
Such has been the degree of interest from foreign investors this year that many are seeking out properties for long-term rentals to Turkish residents rather than the more typical formula of buying and letting to tourists.
One major benefit of a long-term tenancy agreement in Turkey is that it is not unusual for renters to pay up to six months in advance, with some paying another six months after they have agreed to proceed with renting a property. This enables investors to accurately calculate their initial rental income in the knowledge that their yield is secure.
However, there are a few legal aspects of a Turkish rental agreement that should be considered before making a buy-to-let purchase for the domestic market:
- There are no credit checks on tenants as there are in the UK.
- Tenancy laws are heavily in favour of the tenant.
- Eviction can take up to eighteen months if a tenant chooses not to agree and can show they have abided by the terms of the tenancy.
- A tenant is not obliged to leave the property at the end of a fixed-term lease. The law requires they are notified at least 15 days before the lease expires or it will automatically be extended for another 12 months.
Excellent new build investment opportunities
Bearing the above in mind, there are some excellent new build investment opportunities springing up in Turkey, particularly in Istanbul's suburbs where more affluent professionals live. Foreign buyers of long-term rental properties have been largely represented by the Middle East this year as they continue to seek safe haven investments in growth markets.
Property TR a real estate marketing, consulting & management company for property developers and international buyers based in Istanbul has recently released ready to move in apartments in Istanbul. (Read more..)
With foreign buying up 66% since 2013 - and consistently rising - this is definitely a market for the savvy investor to keep an eye on in 2015.
Original source: http://www.propertysecrets.net/blogs/overseas_property_blog/how_to_rent_out_property_in_turkey/post-1461.html