TURKEY could well be the next hotspot for those who want a bargain home in the sun. It is a bit like Spain in the 1970s, when houses were going for a song and a couple of thousand pounds bought you an acre of land. The southwestern corner of Turkey, where the Mediterranean and Aegean seas meet, is the new magnet for British second-home seekers.
“In early 2004 in Turkey you could buy a two-bedroom villa in need of renovation for £35,000. Now, new-build villas start from £60,000 and for a villa with a sea view prices start from £85,000,” says Xavier Wiggins, of the overseas property firm New Skys. “All in all, prices have increased by as much as 30 per cent in some areas over the year but the build quality is of a high standard and, relatively speaking, property in Turkey remains a bargain.”
A place in Turkey is such good value that Sandy Stanley, a jeweller from Wimbledon, southwest London, and her partner, Meena Raj, have bought two plots of land, one in Kas (pronounced cash) on the Cukurbag peninsula, where they are building a 120 sq m three-bedroom, three-bathroom villa with a swimming pool. The frontline plot has sea views with steps down to the water’s edge and will be built from scratch in just nine months.
“We are the adventurous sort who like a challenge,” says Ms Stanley, “but we don’t see it as a risk buying in Turkey. The country is stable, accessible, property is a good investment, particularly when, as expected, Turkey joins the EU, and it’s great value for money in a stunningly beautiful coastal area.”
Located 20 km from the popular resort of Kalkan, Kas is known for its sea facilities; diving and sailing are huge draws and a new marina is being developed. A range of mountains forms a backdrop to the town; because it is set on a peninsula, limited space will prevent the area from being spoilt and overdeveloped.
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“We are keen that the house is sympathetic to the local area and we are building the villa using a local stone, reminiscent in colour to Cotswold stone,” Ms Stanley says. “Fortunately, we have found a Turkish/English company, Paradise Properties, who understand what we want and can’t do enough to undertake whatever we ask, including installing under-floor heating, which is not a common request in Turkey, at a price we feel is very reasonable.”
Including the cost of buying the land, building an outdoor swimming pool and standard internal fittings, the fixed price contract is £140,000. Extras include installing central heating and constructing a garage, which they plan to do, with a scheduled completion date of June, when all building work has to stop by law during the summer months. “The construction is on schedule and we plan to use the property ourselves this summer and then let it out in future years,” says Ms Stanley. “We estimate a 16-week high summer rental season when prices of between £550 and £750 a week should be achievable, as Kas is a little over a couple of hours’ drive from two airports at Antalya and Dalaman.”
Such enterprise comes naturally to the couple. Apart from owning a jewellery business in Kensington, West London, where Ms Stanley specialises in 20th-century decorative arts and jewellery and modern design, they have a finca in rural Spain, several buy-to-let properties in Britain, and they plan to sell the adjacent villa in Kas, having purchased land enough to build their own house and an additional one.
“The villa we are selling next door is priced £150,000 off-plan or £170,000 completed, including a 5x8-metre swimming pool, garage, marble floors, fitted kitchen, three bedrooms and three fully tiled bathrooms,” says Ms Stanley. “The foundations are in place and if someone wishes to purchase the villa off-plan it could be finished by June when our house and the only other property in the immediate area will be completed.”
Buying now in Turkey is expected to be a good investment as well as making an attractive second-home proposition, particularly as house prices are predicted to rise considerably in the next few years because of improved infrastructure, EU accession (predicted for 2010), and rumours that easyJet and other no-frills airlines plan to open Turkish routes.
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“There has been interest voiced by the ‘economy airlines’ to operate to Dalaman and Bodrum from the UK,” says Simon Mansfield, of Brookings Overseas Property. “The accessibility and reduced costs of travel will certainly increase Turkey’s appeal and consequently the value of good property in these areas.”
For Ms Stanley and Ms Raj the venture is as much about pleasure as it is profit, although the couple believe that the two can be combined. “In the past we have said that Spain is where we get away to and London is where work, culture and friends are,” says Ms Stanley. “Now we are looking forward to adding Turkey to the list and getting to know it much better too.”
New Skys: www.newskys.co.uk
Paradise Properties: paraprop@aol.com
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Sandy@sandystanleyantiques.com
Bricks and Mortar has 50 pairs of tickets to give away for the Homes Overseas Exhibition from March 4-6 at London Olympia. Entries should be e-mailed to: tickets@articulate.co.uk. Write “Homes Overseas ticket giveaway” in the subject line and give your postal address.
Sea fronts
A three-bed, three-bathroom villa near Ovacik, not far from Dalaman in southwest Turkey, has a large, open-plan reception room with a terrace opening on to a private pool. The villa is set in a private area and has mountain views to the front and back. Price: £148,000 through Brookings Overseas Property, 01245 473000 or www.brookings.co.uk
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A three-bed villa, in an elevated position with sea views, is one of 24 on a small development a five-minute walk from the beach and a short drive from Yalikavak, near Bodrum. It has a spacious open-plan kitchen, lounge and dining area, a separate lounge and bathroom and a second bathroom upstairs. Price: from £83,450 through Brookings Overseas Property.
Headlands International is also selling three-bedroom apartments in a new development near Dalaman town centre, ten minutes away from Sarigerme beach. The apartments, priced from £34,975, have two double bedrooms (one en suite) with balconies, a single bedroom, and an open-plan kitchen and living room with balcony overlooking the communal swimming pool. Headlands International, 0845 9005151 or www.headlands.co.uk
Areas of Law
PURCHASING a property in Turkey and buying in Britain involve many of the same experiences. The main difference is the requirement to obtain permission from the military, before completion, to purchase the property (a lawyer will apply on your behalf), as non-nationals are not permitted to buy in all areas of Turkey.
There are subtle differences, however, such as the requirement for both buyer and seller to be present at the Land Registry office on the completion date for the transfer of the property title, although it is acceptable to sign a power of attorney to a local lawyer.
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On the level of deposit required, each agent or lawyer will have his or her own requirement but generally not less than 4 per cent is acceptable, although 10 per cent is the more usual minimum to ensure both parties are serious about the undertaking.
Using the services of an English-speaking local lawyer the pitfalls will be few, but buyers should be aware of the common practice of under-declaring the purchase price to reduce the seller’s tax liability. “Though strictly speaking it is an illegal practice, it as accepted as part of the buying process in Turkey,” says Dennis Phillips, head of emerging markets at the solicitors John Howell & Co. “But beware, as you could end up with a seriously undervalued property if and when you come to sell up.”
John Howell & Co: www.europelaw.com