Turkish Property off plan and direct from the developer

Literally known as Bird Island, Kusadasi is the setting for a series of quality property by Irish development company Capital Developments. Selecting Kusdasi’s most famous location as the setting for their real estate project, Ladies Beach lies just south of the town centre. The main promenade offers plenty of eating and drinking establishments.

With offices in both Ireland and Turkey, customer service is their forte with the focus on new development property which appeals to the second home buyer that offers strong rental potential supported by a prime location at just 1hr 15 mins from Adnan Menderes Airport (Fly Thomas Cook and British Airways).

Eliminating the ‘middle man’ means off-plan apartments in their Lemon Grove development start at 111,000€ whilst the semi-detached villas in Walnut Grove are being marketed at 128,000€. Both developments are completed to an extremely high standard and the developer continues the service by offering a well thought out furnishing package tailored to the overseas property buyer.

As to be expected when investors find a good project, sales are strong. Their first project Olive Grove comprising apartments, townhouses and semi-detached villas which sold off-plan for 96,500€ and completed in August 2005.

According to data provided by the Land Registry General Directorate and reported in Turkish Daily News, from Jan. 7, 2006 through to mid April, the total number of properties sold to foreigners was 1,206 and this figures looks set to increase on the back of positive media attention and steadily increasing tourism traffic year on year. Research from Homes Overseas magazine, suggests 40,000 Britons are expected to buy in Turkey.

With the quest for full membership of the European Union, low costs of living and favourable property taxation, Turkish property prices are rising fast in line with its growing importance as property investment hotspot.

Turkish property costs to note:
•Stamp duty (3% of sale price, with 1.5% paid by the buyer and seller)
•Capital Gains Tax (not payable by private purchasers if it is not sold within the first four years)
•Personal income tax (based on rental income and capital gains)
•Corporate tax (a company is exempt from any corporate tax as long as it has been held for at least two years)
•Real estate tax (an annual charge, similar to UK council tax, which is 0.3% for uncultivated land for development and 0.1% for residential buildings – although it can be double in some Turkish provinces)
•Inheritance and succession tax (check with a/your lawyer to make sure your will, drawn up at home, is required in a Turkish court and the tax implications for the heir if the property is sold)
•Environmental tax (taken as part of water utility bills)
•Earthquake insurance (compulsory and at a nationwide contribution rate)

Real estate in Turkey continues to be a bargain compared with the rest of the Med, however this will naturally change as development progresses and as future EU membership is secured.

Walnut Grove and Lemon Grove are being marketed and sold by Capital Developments.