After a period of rising prices the Turkish property market experienced a dip last year. However, according to real estate agencies fears of a property bubble has passed.
Under the influence of the monetary policy of the central banks have significantly increased prices in the Turkish property market between 2010 and 2014. Property was on average 54 percent more expensive every year, raising fears of a bubble. Since last year, the peace has returned to the property market. Moreover, many analysts positive about the Turkish economy. According to a recent study by Ernst & Young at six thousand large European companies, Turkey is the most optimistic country in Europe.
The interest in Turkish property is again on the rise, said Vera Wood Head of Real Estate Turk. The number of homes sold to foreigners, rose by 17.3 percent in the first quarter of 2015. Yet we see a reduction in prices by 3 to 5 percent compared to 2014. This evolution mainly occurs in buildings that are older than ten years, because they have fewer facilities than new buildings. The new prices have remained about the same.
According to Veronique Matthys Immo Turkuaz is difficult to give an overall picture of the Turkish real estate prices. Its a large and diverse country. There are enormous differences between Istanbul, the tourist coasts and the eastern part of the country. Moreover, it is not the practice of the actual sales price on the tapu, stating the title deeds. The official figures are therefore not entirely reliable. In the tourist regions in which we operate, we observed the last five years increases from 15 to 30 percent. This is especially true for new construction.
In Turkey, the location determines the price of real estate. In crowded areas such as Alanya are luxuriously finished apartments for sale from 65,000 euros, at other locations that may double. The purchase costs are much lower than in most other European countries, says Vera Wood Head. You pay here a transfer tax of 4 percent on the purchase price on the deed. The Turkish government recently announced that she is more stringent in the future to ensure low values.
In addition, the buyer should be around 1800 euros factoring in operating costs, said Matthys. That required, among other powers, searches, translations of legal documents, preparation of the dossier at the Tapu office, transferring water and electricity, and closing a DASK insurance. This insurance is compulsory and covers possible damage to the apartment by an earthquake. the premium depends on the size and age of the building. they usually amounts to 40 euros per year.
No notary needed
Notary fees are, in principle, because Turkey does not require notary to own, Houthoofd knows. All the formalities are handled directly with the Registrar and Tapu office. Who still turn a notary, must realize that it offers little added value. Unlike his Belgian colleague he controls no cadastral data and it does not verify the existence of debts on the property rest.
In Turkey it is customary to divide the commission from the broker on the buyer and the seller. Usually both parties will each pay 3 percent, but exceptions are possible. A Turkish agency is merely an intermediary, Matthys says. Unlike a Belgian broker can therefore did not legally sue if anything goes wrong.
Property owners must take into account annual fees. The costs for maintenance and security of a luxury two-bedroom apartment amount to 100 to 120 euros per month. An all-detention - including DASK - costs 250 euros per year. For the management of a property managing agent charges an annual 100 to 150 euros. In addition to an annual property tax, says Wood Head. But this represents only 0.1 percent of the value stated in the tapu. At an investment of 100,000 euros is therefore only 100 Euros per year. This withholding tax has to be paid in the municipality where the property is situated.
In Turkey, there is no wealth tax. Who sells his home within five years at a profit, bears a capital gain tax on the difference between the sale and the purchase price. He rents his apartment, pay tax on rental income, says Michael Jooste of the firm Cazimir. The owner may well bring its actual cost or expense allowance of 25 per cent deducted. The first 1,200 euros is tax exempt. Then a load between 15 and owed 35 per cent, depending on income disc.
Double Tax Treaty
Belgians must indicate their Turkish rental income on their Belgian tax Matthys warns. Owners who rent out their property, should indicate the gross rent. This is calculated by the tax paid in Turkey to draw the fair rental income off. Of them again may place a flat charge of 40 per cent deducted. Who are dwelling not rent, fills his tax in theoretical rental value. This corresponds to the cadastral income.
Belgium has a double taxation treaty with Turkey. Through this agreement Belgian owners do not pay taxes in their own country.