If you are looking to retire overseas and possibly invest in a home abroad, then look south, south-east Mediterranean, Turkey to be exact.
Turkey is a perfect place to make your new investment with their up and coming tourism, low cost of living and openness to international buyers. Turkey is fast becoming a new favourite place to buy a second home, go on holiday, or retire to. Let us discuss some of the country’s strong points, and why it is becoming the world’s premier place to buy a home overseas.
A beautiful combination of natural beaches, contemporary amenities and historical cities. Turkey is the favorite holiday destination for many Europeans. The country has beautiful sites and would be an amazing real estate investment for anyone looking. It is a welcome and desirable location for Mediterranean property rather than over-crowded countries like Spain, or Italy.
Turkey has become a gem in the world of real estate investment due to its low real estate prices and interest rates, the profitable buy to let option and a high resale market for investment properties. Since the markets have been opened to foreign investors many of the cities have seen a rapid increase in foreign purchase accelerating values in this emerging market as well.
For example, take a retired couple on say £2,000 per month pension income from the UK. Let us assume that they are renting their home overseas. In Madrid, Spain, to live comfortably, the couple will need around £2,440 per month, therefore their UK pension, which will be subject to Spanish taxes, will not be sufficient for a comfortable life. They will need to make compromises.
The same couple will need £1,200 a month to attain the same comfort in say Istanbul, Turkey – possibly less on the south coast of Turkey. In addition to this their UK pension will not be taxed in Turkey so their net disposable income in Turkey will be higher than in Spain to start with. Therefore, £2,000 net from the UK will provide a ‘luxury’ life in Turkey whereas it will fail to provide ‘comfortable’ living in Spain.
Turkey’s low cost of living is due to many factors, including.
- First, because Turkey is still working to gain European Union membership, it is considered an outsider; it is not in the Euro zone. This works to your advantage because it isn’t a matter of if Turkey will be invited into the EU, but rather when. This is an advantage for foreign purchasers because you can make your money last longer and stretch further, but with the comfort of knowing that your investment will see a notable value increase once EU membership is finalised, could be 5 or 10 years away, however, it seems highly likely to happen.
- In addition, Turkey still clings to its roots, focusing on local providers with fair prices. Turkey has thus far managed to avoid mega-providers who drive prices up when they arrive. Local and family operated bakeries, eateries and other necessities help to ensure that you will always find great prices and extraordinary value.
- Turkey has also been aggressive in controlling interest rates and by extending tourist visas for foreign property owners. So, even if you decide to maintain a residence in your current country, you’ll still be able to enjoy long periods in Turkey while not being limited by short immigration periods.