New build or resale?

[hoollyy]

Hi

I am thinking of buying a property in turkey as an investment - the aim is to let it out for as much of the year as possible and maybe use it myself for a few weeks a year (but we wont be living there permanently).

I have noticed that the prices of resale properties are significantly cheaper than new builds.

Bearing in mind that I am based in the UK, would it be more sensible to go new build or private resale properties? (and which websites list resale?)


I'm also debating between buying near Bodrum (I've heard that it is a year-round resort) or buying in Dalyan, Olu Deniz / Fethiye or maybe Gocek (because I love this part of the Turquoise coast)
Anyone have any opinions on which area is the best value-for-money? and also which is the best for rental income?

Thanks
Holly

 

[Steve Hand]

Hi Holly,

Have you considered Alanya at all.
12000 foreign nationals own property here, including 1000 Brits.
Lively, year round resort. Good potential rental returns, particularly between April to October.
Also great beaches and the fabulous Dim Cay river valley.


Good luck.

 

[Sunny Days]

Hi Hoolly
Keep your mind open about building age. Your purpose for buying is to let out. Buy the property that will offer the best rental return, bearing property cost in mind ie search for best % yield. If buying a re-sale, an ideal re-sale for you will be one that has a proven record in the rental market and has a good % yield. Beware of guaranteed rentals on new builds where the developer isnt part of a travel company. If the devloper is with a travel company, enquire about the % of income that you will receive from all bookings. Some companies offer as low as 50% of the income (after theyve taken out their monies) and then charge for cleaning on top....leaving not a lot of property owner.
If using a private property maintenance company, you need to have regular updates in your language. Also set up your own bank accounts with internet banking in Turkey so the management company can pay you your income on a regular basis.

 

[tylerbabe]

Hi guy,s
I think buying a resale which has been (established) for rental income. The same renters come back every year. If you were to buy a new build then all the snags etc. and all depending on the area it is in. Hisaronu is a very popular tourist spot everything is at your doorstep and just a 2 minute walk. Most of the rental,s here are word of mouth yet the maintenance company can pull a few in. We have tourists walking in the complex asking about rental,s. If I had of been renting I could have made a fortune but we live here so this is why we are selling.

 

[Lysos]

Holly,

Buying a 'holiday' property in Turkey is not an investment. There are no year round resorts, apart from maybe Belek, which attracts golfers year round, but particularly autumn & winter. However, the all inclusive hotel packages offer such good value, the market for self catering acommodation is minimal. In general, in all resorts, there is a vast oversupply of resale & new properties, and the rental market is swamped.

If buying property for investment ANYWHERE, you should be looking at the long term rental market, i.e towns & cities, not holiday resorts.

 

[tylerbabe]

Hi Lysos,
How is a holiday resort not an investment when you can make money from May - November I must disagree with you.

 

[Steve Hand]

Have to agree with Tylerbabe.
Many of our rental properties are let out on a long term basis: 6 months +.
Long terms rentals are particularly appealing to the 'try before you buy' sector, a recent advent in the overseas market and one that is likely to show significant growth.
We have already had enquiries for long term rentals for next year.
Alanya - not a year round resort?

 

[Nikita999]

I am not sure that the Turkish resorts buildings have long term rentals-6 monthes.

 

[Steve Hand]

Hello Nikita 999,

In Alanya i can absolutely guarantee that they do.
We have a large residential development just west of Alanya. Within this development there are currently 14 properties being let for a term of 6 months or more.

I know that we could at least double the number of let properties on this development, if only the owners were to make them available.

 

[Lysos]

tylerbabe & Steve,

Achieving even 6 months rentals doesn't necessarily make for a good investment. The acid test is to be honest with your figures - how much does it really cost to maintain, insure & operate the property for a full 12 months ?. Subtract that from your rental returns (after tax if applicable),and based on your total purchase price (including legals furnishings etc.) what is the actual percentage return ?. Remember, also that particularly in today's market & for the forseeable future you are unlikely to see any capital growth, in fact, just the opposite !.

 

[grasshopper]

This is my own personal opinion to what l have experienced.
Always go for a resale.There are many advantages to this
1/You can see the owner direct,where you can see whether the tapu is legal and stated correctly
2/You will get a lot of many extras to a resale,where new builds you have to pay that extra.Some have all the furniture,white goods and telly installed.
3/You can see how the build has stood up to the aging and how it with stood in time against what the weather can throw at it.New builds can hide a lot.One of them is the sub standard of a roof where the rain will seep in the inner walls and will come through the interior walls and fungi starts to grow.Always check the roofs to see if they are weather sealed.
4/You will be in better position to bag a bargain this way,since some owners due to unforseen circunstances need to sell quickly.
5/The garden are also well matured with fruit trees and flowers.
6/But the most important thing is when one buys a resale is you will generally not experience the mental worry of buying a build without the tapu[which states ownership] to the excuses one recieve when buying new builds.l have known quite a few that have bought new builds and down the line say a couple of years are still with no tapu,and are in legal procedings that is costing them a fortune.Even then it does not garrentee you will be issued with the tapu,due to certian circunstances.
So,my advice is to play it safe and go for a resale,until they have completely overhauled the system to stop this nightmare from happening.
7/Also l advise who ever l see is to buy a private property,since this will make you totally independent from huge unforseen price increases on complexes and also on how you want your to look like.Not being dictated to a complex manager how it should look like.

The best investment of the area is generally near marinas and places of beauty.Akbuk has some fantastic views and is known for it sunset.The marina is near by in Altinkum.But there are fewer private properties then there are houses on complexes.
My house is private and one minute from the seafront.A very good investment

 

[tylerbabe]

This is my own personal opinion to what l have experienced.
Always go for a resale.There are many advantages to this
1/You can see the owner direct,where you can see whether the tapu is legal and stated correctly
2/You will get a lot of many extras to a resale,where new builds you have to pay that extra.Some have all the furniture,white goods and telly installed.
3/You can see how the build has stood up to the aging and how it with stood in time against what the weather can throw at it.New builds can hide a lot.One of them is the sub standard of a roof where the rain will seep in the inner walls and will come through the interior walls and fungi starts to grow.Always check the roofs to see if they are weather sealed.
4/You will be in better position to bag a bargain this way,since some owners due to unforseen circunstances need to sell quickly.
5/The garden are also well matured with fruit trees and flowers.
6/But the most important thing is when one buys a resale is you will generally not experience the mental worry of buying a build without the tapu[which states ownership] to the excuses one recieve when buying new builds.l have known quite a few that have bought new builds and down the line say a couple of years are still with no tapu,and are in legal procedings that is costing them a fortune.Even then it does not garrentee you will be issued with the tapu,due to certian circunstances.
So,my advice is to play it safe and go for a resale,until they have completely overhauled the system to stop this nightmare from happening.
7/Also l advise who ever l see is to buy a private property,since this will make you totally independent from huge unforseen price increases on complexes and also on how you want your to look like.Not being dictated to a complex manager how it should look like.

The best investment of the area is generally near marinas and places of beauty.Akbuk has some fantastic views and is known for it sunset.The marina is near by in Altinkum.But there are fewer private properties then there are houses on complexes.
My house is private and one minute from the seafront.A very good investment

Well said Grasshopper do agree with you all they have to do is walk in and sit down if furnished. We have been trying to sell our resale in Hisaronu Oludeniz with great difficulty any idea,s to help me.

:driver:

 

[tylerbabe]

Yes me again it is a great investment our complex of 34 aparts is booked out from May- November at £350 per week how can you moan about that. :viking:

 

[Steve Hand]

Irrespective of whether the property is new build or resale, the 2 criteria than will determine it's let-ability are:
- Good, easily accessible location.
- On-site facilities.

 

[tylerbabe]

Irrespective of whether the property is new build or resale, the 2 criteria than will determine it's let-ability are:
- Good, easily accessible location.
- On-site facilities.

Well at one end of the complex go out the gate bars & restaurants or go out the other gate the same. Walk to Hisaronu 2 minutes and eveyrthing is there how close do you want to be to ammenities. Walk to the front of the complex and the dolmish is there every couple of minutes will take you to Oludeniz. :elefant:

 

[tylerbabe]

tylerbabe & Steve,

Achieving even 6 months rentals doesn't necessarily make for a good investment. The acid test is to be honest with your figures - how much does it really cost to maintain, insure & operate the property for a full 12 months ?. Subtract that from your rental returns (after tax if applicable),and based on your total purchase price (including legals furnishings etc.) what is the actual percentage return ?. Remember, also that particularly in today's market & for the forseeable future you are unlikely to see any capital growth, in fact, just the opposite !.

Hi Lysos,
If you have no mortgage on your property then you can make a lot of money as for the costs maintenance about £500 per year plus electricty & water not a lot to pay out :driver:

 

[Lysos]

Hi tb,

Yes, if you are mortgage free that makes a difference to profitability, but not to my original point. i.e work out the return on your total investment. If that is better than you could get in another investment (no, not bank deposits !) then it is the right investment for you. I suspect that the majority of purchasers have some degree of borrowing to service.

 

[grasshopper]

How to sell

Well said Grasshopper do agree with you all they have to do is walk in and sit down if furnished. We have been trying to sell our resale in Hisaronu Oludeniz with great difficulty any idea,s to help me.

:driver:

The way l sold my 2 properties a few years ago was through my own making.Even though at the time l had it on with several other agents that stated to me will try their best to sell it for me.One even said they target 64 countries including Russia.Not one viewer from these estate agents appeared.

So,the best way to sell your property is by doing it yourself.l was very successful this way.Get yourself a huge bed sheet[preferably a white sheet]Write on it in very bold and clear lettering "for sale"displayed for all to view from the areas where the people will most likely to see it.Also ask others that are going back to Britian if they can sell it for you ,where they will receive a commission of 3% of the money.Advertise in the local shops and also in the local papers.Print out a description of the property and also a photo of the property on photo paper and display it in bars restaurants and shops[permission from the owner of course]

l can guarantee you this will be far more successful then the agents.l heard they are far more interested in selling the new builds,because of the huge commission they receive from the builder and also other money making schemes from a new build.

l could go on,but that is another story altogether.

 

[Fethiye]

I have an apartment in Hisaronu which is fully rented from May to October, with the talks of extending the season, the ski resort & new Golf course we are hoping to have winter bookings as well. We rent for £450 per week in July & August, £350 low season. This is a new build property with lots of facilities and only 200m from town, the rental has been so good that we are thinking of buying another on the same development as we keep turning bookings down!
Can highly recommend our developer which was Select Properties

 

[Toprak]

Hello Hooly
ı have read your message
ı wanted to know some info locatin-vıllas land-apartments or complex land ıf you gives to me more ınfo ı wıll gıves to you more info.pls dont hesıtate to contact me.Thanks

 

[The old grey wolf]

Hi Hoollyy

Its interesting that new builds tend to be more expensive than re-sales isn't it? I wonder why that may be. Perhaps because developers put up to to 15% margin in for agents commission and 'guaranteed' rental returns for the first year that is already loaded on the price? Of course, resale is a very good way to go - you are dealing with a private owner and often the property is in a much better area. Most of the property we sell are re-sales, check out Turkey Horizon estate agent in Kas for available re-sales.

TOGW