Spain, still no:1?

[New Home in Turkey]

Everybody having something to do with overseas property investment, know that Spain has been for quite a long time the unbeatable champion in this business.
Not that I am an expert but I think that this was mostly due to the very fact that Spain was the very first country to open its door to overseas property purchasers, was a member of the EU, and of course attracted the UK market, which I think is the strongest market in this business. Of course, no need to say that Spain, by its beauty,history etc, was, and still is a magnificent country.
However, things seems to change slowly these days. Prices in Spain are way over the top, almost everyday a new article on a bribery scandal makes the news, over development makes the entire business crackle.
To sum up, "new" competitors such as Turkey, Egypt, Morocco etc are now under the spots, and try to expand their influence in the business.
The question is: Does one of these emergent markets take the throne or will Spain always stay as the primary market for overseas holyday home purchasers?

 

[overseas wills]

Re

I still think people still view Spain as a safe bet and lets be honest in some ways it still is. Stability, sunshine and sangria. 3 important s's.

However have you noticed the British press tend to stay clear from the unfortunate incidents that many thousands of people are experiencing like having their houses bulldozed due to planning issues and non licences.

 

[mickthepropertyguru]

If your after a holiday home than you can get amazing value right now and even better in the next 18 months. People are buying €1,000,000 villas for €800, 000 or less.
There are agents dealing in undervalue properties in distressed sales. You can get a great deal. With a property 30% or more undervalue than you can easily get 100% mortgage. Sometimes even 110% leaving you with a couple of grand to play around with or it could cover the mortgage for many months.
So for holiday home hunters its a great time. Spain is so accessible its incredible. Having lives there myself though i wouldn't buy there as its a bit to westernized for me.

 

[overseas wills]

Re

I agree prices are good and never a better time to invest in Spain.

 

[willowtree1]

you cant be number 1 for ever, but it is a buyers market outhere ,and in terms of choice and some of the deals you can get if you have a good look around, there is still opportunities to be had.

 

[New Home in Turkey]

Spain, by its proximity to major european markets, still is and will stay an attractive market for sure.
However, what about the prices? mickthepropertyguru, with the price you mention for a property in Spain, you can easily buy 10+ apartments in a block in Turkey (for an example),right by the sea, half an hour from the airport etc??OK, I know, you probably mention this price for those who have the resources to allocate such a budget for a purchase, but what about the clients with a budget ranging between €60.000 - €150.000?
What would it take emergent countries to be (at least) as competitive as Spain?

 

[mickthepropertyguru]

Thats was justan example of someone who had the bujget for a villa with sea views and the amount they can save. People who have big budjets can save 100,000 of thousands right now on Villas.
To be honest people that are buying in spain now would have no interest in 10+ apartments in Turkey as these are leisure and lifestyle clients and dont care at all about investment for the most part.
But when i lived there i was looking at 2 bed apartmens for 190,000 euro with the possibility of 105% mortgage due to it being BMV. Now here you would need to put a deposit of around 20,000 euro down but that is affordable for many people. Turkey can be difficult to get to at various times of the year, sometimes it can take 3 flights to get to Bodrum. Its not a place where you can go for a long weekend. Spain is. That the difference fort many people. Lifestyle clients.

 

[New Home in Turkey]

Yeap,I think you are right mickthepropertyguru. Spain has well marketed its advantages, and now its a brand.

The easy access is also an issue as you put it. Whereas you have daily flights from an to Spain from and to all major E.U countries, its not always the case for Turkey. During low season (i.e winter-autumn) its sometimes difficult to find a direct flight to Bodrum,Altinkum (although easier to find to Antalya).

Emergent countries dont have the strengh yet to position themselves as a brand.Their main advantage is the price, and at early stages, all they can do is stick as much as possible to it. However, it took almost 30 years for Spain to win its supremacy, and when you think that the newcomers have a role-model in front of them to take a lesson from, it wont surprise me that we will see in a couple of year one or more serious competitor to the throne...

 

[Investy]

New Home In Turkey,

The prices for Turkey are attracive as you say but for me as an investor I was unable to find properties with decent YEAR ROUND rental potential in Turkey. Some people I know say they dont get any rent outside the main summer season, and a little over Xmas.

This can mean the rental yield after all management and repair costs can be quite poor.

Capital growth is a possibility but one is mindful of the fact there is so much building in Turkey, so chosing the real winners is not easy.

If you make 100,000 euros capital growth, you must then deduct the interest costs (interest on UK mortgage),buying and selling costs and Tax, so you might not end up with very much profit.
THEREFORE HAVING YEAR ROUND RENTAL (OR VERY VERY HIGH RENTALS IN SUMMER) IS KEY.

 

[New Home in Turkey]

Investy, I think you are generally right except one small detail, which is (talking for Turkey) the fact that you can get a property with year round rental depending on where you invest.

As an example, if you purchase a descent property in a big city (i.e Istanbul, Ankara, Izmir) you can be almost %100 sure that you'll rent it pretty easily your property for an amount that will cover the mortgage interim payments etc.

However, it is slightly different for costal areas (Aegean, Mediterranean). In these locations (except the ones guaranteed by the developers),its a little more difficult (for now) to guarantee a year round rental. However, the interesting thing here, is the fact that once rented, you can get a pretty descent rental income for (on average) 4-6 months.

 

[mickthepropertyguru]

Slightly off the point but one thing i would say is that Istanbul is looking excellent but its is due for a massive earthquake in the next 30 years. Experts have predicted that it will knock something like a quater of the city due to poor construction and likely to kill over 50,000 if past records is anything to go buy.
The fault line lies around 15 km south of the city.
For me the risk is too high as it would take the city a long time to recover and would kill investment in the future after such an event for a fair period of time.
Madrid and other cities in the north of Spain look pretty good still!

 

[New Home in Turkey]

Well, I cant say that, talking earthquakes, Istanbul is the securest city on earth. However, the subject beeing known by the government, and by all local authorities, new constructions are closely watched and all built according to very strict criterias. I would recommend new developments which are very much secured to the deadliest earthquake.

On the other hand, one other city that is not too much under the spots, but that I think should be, is Ankara, which is one the 2nd most populated city in Turkey, and of course the capital city of Turkey. (and no earthquake risks...)

 

[Aegean]

Also look at Izmir if they get the expo 2015. Lovely location and if good quality property you will get long term rentals. Added bonus is you can get 75% LTV mortgages fixed in Euro's now.

But be careful in Istanbul as many projects are overpriced.

 

[laurajane]

turkey

i think spain has been and done already...we need to be looking for the next spain..my bets are on turkey. with their growing economy property is estimated to increase by 40% per annum!!! its going to be the next property hot spot for sure!

 

[New Home in Turkey]

Well, Turkey is for sure an attractive location, and I think those who invest here wont regret it. However, as in each investment, I think the most important is to define a clear strategy, will it be a long term or short term investment?
Assume that 10 years ago, someone who'd bought a property in Marbella would get a fortune for it today.
Its exactly what it is going to happen in Turkey.

 

[laurajane]

yes i completely agree with you, i think if you can buy off plan then you can make a good profit just waiting a few years...but long term you could really gain from an investment there. Places like Didim which are close to the main town of bodrum but alot more scenic will defiatly attract the wealthy...so who knows maybe didim will be he next marbella... fingers crossed for me!

 

[Lysos]

laurajane,

just who estimated Turkish property is going to increase by 40% per annum ?. Based on what ?. I've been going on holiday to Turkey for the last 12 years, because I like everything about it - as a holiday destination - and it's cheap. What will increase by 40% is the number of unsold new properties in the tourist resorts.

 

[New Home in Turkey]

I am not very sure of the %40 increase in property prices p.a, and also think that it might be a little overrated. No need to talk about the reasons, but the most obvious one being the subprime crisis affecting the global business world.

 

[mickthepropertyguru]

The best investments in any beach/coastal resort are the apartments/villas that are beach front or have amazing views. The further away you go from the beach 2nd, 3rd line etc the less rentals and the less chance of resale ability you will have. For pure investment anything else i think is risky.
New and off plan developments are and will kill many coastal markets in time with over supply. Bulgaria and Spain had very little regulation.
Turkey has slightly better laws regarding this i guess with 20% building density and many developments being under 3 or four stories.

If you are buying anywhere else i feel that it should be more of holiday home/investment.
Sunny Beach is a great example of this. Turkey will follow in Sunny beaches footsteps i would think in the next few years. The real winners in Spain are the front line properties. This will be the case in Turkey, Albania, Italy etc.

 

[DC]

Spain or France for uk buyers by a mile and a half.
Safe, services and security - Easy and Western

Other countries for other buyers for sure and more adventuresome types.