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One UK resident who visits HomesGoFast.com is going to win their mortgage paid for one year to the value of £20,000. This prize will change the life of one lucky person for the next 12 months.
Mortgages tend to be the largest monthly outgoings for most people especially those who have recently taken out a UK mortgage.Think what you would do with the extra cash you will have for the year without having to pay your mortgage
Fixed mortgage rates have hit a 10 year high with the average deal set at 6.75% for a two year deal and 6.72% for a five year term. The move is yet another reflection of the increasing cost of finance with the £50 billion government asset swap program seemingly having very little impact upon liquidity. Industry insiders believe that sub 6% mortgage rates will soon disappear with rates set to move even higher in the short term.
Buying land in Brazil seems to be so damm cheap that you can purchase beach front land for the price of a small car. I visited Brazil North East coast in Fortaleza and have seen for myself the stunning beaches, nightlife. people and low low prices. But surely buying land in Brazil must be a complicated process. Well the answer is a resounding NO!
As always get a good lawyer I would go with one that is used to international investors this is your way to make the purchase safe. DON’T LET ANY REAL ESTATE AGENT TELL YOU ITS NOT NECESSARY! Never sign a contract in a language you do not understand make sure your lawyer is fluent in your language. A good lawyer will
Check that the people or company selling the land actually have full title. You don’t want some disgruntled relative turning up a few years down the line claiming its there land
Check for any charges and liabilities still owed on the property
Advise you on the purchase agreement and the obligations for both parties
Register the land to you
I would say put aside $2000 approx £1000 for legal cost
First Step is Brazilian CPF
One of the first things a determined buyer will do is to obtain a Brazilian ID called a CPF you can obtain one of these by submitting a copy of your passport with a request for a CPF signature card. Once you receive the signature card you simply sign it and send it back with a small fee, and your CPF number is assigned to you at the Receita Federal. This can then be included in any purchase agreement. A formal copy of the CPF card will be posted out to you at an address in Brazil – usually your lawyer´s address for ease.
Brazilian real estate is causing quite a stir at this time, Brazil’s economy and housing market will make Brazil one of the largest economy in South America, The time is now to buy land in Brazil
My top tip when buying land in Brazil
Buy land with zoning and planning permission it will be easer to sell quickly and easier to build upon
Buying a property in Spain is one of the most desirable things to do for the sun starved British who dream of longer summers and a more relaxed way of life.Recent figures produced by www.hotproperty.co.uk suggest that half of the UK population would prefer to retire abroad . A good chunk of these people see Spain as the No.1 place to retire overseas.
Have Things Changed For Spain?
The talk of the industry is the credit crunch and how property developers are finding it harder to get finance for their developments whilst buyers are finding banks more selective making loans harder to obtain. Combine this with a general unease about spending money on overseas property at an uncertain time it feels like Spanish property market is heading for a downturn.
Bad Press For Spain
Brits are reading of horror stories of fellow expats who are having their houses knocked down by the Spanish government determined to reclaim the coastline.The recent clampdown on properties that were constructed with illegal building licences has caught innocent buyers out even after using they used respectably lawyers to buy their homes.The law states that all land within 495 metres of the shoreline is public and bans building within that area.
Short Term Worries
The property market in most countries should not be viewed with short term eyes. My feeling is that all the doom and gloom is short term. Markets continually rise and fall and this makes for opportunities for those with a keen eye. People considering moving to Spain should still go, buyers looking for investment should still invest, second home buyers looking for a holiday home should still go. Spain will always be popular place to buy it still beats most emerging markets hands down. The proximity to the UK and its established feel for buyers will hold it in good stead for the future
Profits Are Made on Purchase
Kyero.com shows asking prices of homes in eight popular Spanish regions have fallen in the past year. Fuerteventura and Lanzarote saw particularly big drops of up to 30% each. This could make for some great bargain hunting. Investors know that you make you profits on purchase not just on sale.
How Are You Feeling About Spain?
These are my views I wonder what you feel about this popular market in todays climate of uncertainty
The scenery in Romania is stunning and unspoilt, the cost of skiing is very low compared to the rest of Europe, the coast is superb and the Romanians are very welcoming.
As a pure investment or even as a holiday home or apartment, Brasov in Transylvania offers one of the highest potential returns as its location near the ski resorts, its infrastructural developments (new airport to be completed in 2008, “Super Highway”), and its lovely traditional town center makes Brasov one of the most sought after locations in Romania.
The coast and its sandy beaches will see a high development of tourism from Western Europeans who are only starting discovering the beauties of Romania.
The investments in Bucharest (shopping centers, off-plan, resales) started a few years ago,
and as such the prices have already gone up in and around Bucharest. The potential, though still substantial, needs to be assessed very carefully.
Prices are very cheap in rural areas but you need to be prepared to spend some time and to have renovation expenditures for your property to achieve British standards.
This article has been prepared by Didim Sun Properties - based in Altinkum, Didim It is possible that some elements of the buying process and legal framework are slightly different in different areas of Turkey.
How best to buy property in Turkey? We recommend that you use a licenced estate agency. Check out their certificates before you engage their services. The local Chamber of Commerce accredits licenced estate agencies and a certificate from the Chamber of Commerce (Ticaret Odası) should be displayed on the wall of a licenced estate agency….but check that the photograph on the certificate shows one of the personnel working in the office and not a third party who is not working in the office…..dont be fooled by the explanation "oh, he’s on holiday!"
Do not buy a property through a friendly waiter, hotel receptionist, friend of a friend etc. Ask yourself, “would I do this if I was buying property in the UK?”
What happens during the buying process? The legal procedures are really quite straight forward. We can act on your behalf throughout the process as is normal with our Turkish customers. We are fluent in both English and Turkish. However, for foreign buyers we recommend you engage the services of a good English speaking solicitor who will act on your behalf.
Once you find your ideal property, your agent or your solicitor will carry out the searches on the Title Deeds for you and ensure that there are no outstanding debts registered against the property and that the seller is actually the person detailed on the Title Deed. Thereafter a contract will be drawn up between the buyer and the seller. (The contract should contain the following:
Details of the purchased property and full names and addresses of the buyer and the seller
Details of payment times and how these will be paid
Any extras included in the sale price
The buyer will then be required to pay a deposit in order to secure the chosen property. At this point it is also advisable to open a Turkish bank account; we will help you with this. There is then normally a wait of 12 to 16 weeks (however, at present due to the volume of applications, the wait can be longer) for the paperwork to be cleared by the military.
As soon as the local Title Deeds Office receives clearance from the Army, the remaining balance (usually 10% of the purchase price is retained by the buyer until the deeds arrive) plus any additional costs are transferred to the Turkish bank account and the Title Deeds can be exchanged. BEWARE of agents or developers that ask for full payment up front. Why pay for everything when you have note received everything?
The Title Deeds formalities can all be carried out in your absence by leaving a Power of Attorney with either your agent or with your solicitor. Should you decide to use your agent for this work, they will take you to a notary to arrange this Power of Attorney. There is an official translator within the notary’s office to ensure that you understand the Power of Attorney.
What’s ‘due diligence’? Put simply, due diligence refers to the buyers need to check out the legitimacy of the investment that they are making. It sounds scary but in fact it is the essential checks that one would make during the buying process in any country. Just because the sun is bright and the locals are friendly, that is not reason to lose one’s concentration on the job in hand.
A buyer should be confident that the land title deeds are in place and belong to the developer. Does the developer have a good financial background? Has the developer a good track of quality and finish on their completed projects. Does the developer offer guarantees? Is planning permission in place? For a completed build, is there a licence for habitation?
These are the basic elements and a quality developer will have the relevant documentation to hand. Some clients take advice from their solicitor on this hence the need to have an independent English speaking solicitor.
What is a Sales Contract, a Title Deed and a Tapu? You will come across both the Sales Contract and the Title Deeds when buying your property in Turkey - in fact they are the most important documents in the whole process.
The sales contract is the legal document that agrees the sale between the buyer and the seller. The contract should state that you the buyer agrees to buy the property at the price you have agreed to pay, and the date by which you agree to pay it.
The contract will also state that the seller agrees to sell you the property at the agreed price. (Please remember that deposits are usually non-refundable in the event of a cancellation of sale by the purchaser) The sales contract will also include any extras that you have negotiated with the seller.
The Title Deed is the legal document of ownership of the property. The Turkish name for this document is "Tapu Senedi", hence the Tapu you may have heard about. Once the property is sold, the title deeds are transferred from the seller to the buyer and that concludes the sale. If there are any restrictions on the property they will be itemised in the title deeds.
Therefore it is very important for the solicitor to check the deeds carefully before recommending that the sale proceed. You can also ask to have restrictions placed on the deeds once transferred to you if you wish.
In order to have the deeds transferred into your name, the details of the sale will be submitted for security clearance and once clearance has been given, the deeds will be transferred.
I’m not Turkish, can I buy a property in my own name? All citizens of the countries listed below can legally own a real estate in Turkey due to reciprocity principle and are liable with the same rights / procedures as all the Turkish citizens. Presently a new law is pending which may allow this list to open up to other countries in the near future. We will update the list if/when this happens.
Argentina, Australia, Austria, Barbados, Belgium, Bosnia-Herzegovina, Brazil, Canada, Central African Republic, Chile, Colombia, Dominican Republic, Egypt, El Salvador, Federal Republic of Yugoslavia (Serbia), Finland, France, Gabon Germany, Greece (providing that some restrictions are reserved), Guatemala, Holland, Ireland, Israel, Italy, Kenya, Luxembourg, Malawi, Malaysia, New Zealand, Norway, Panama, Republic of South Africa, Peru, Somalia, Spain, Sweden, Tanzania, Turkish Republic of Northern Cyprus, Turkmenistan, UK, USA, Venezuela, legal immigrants and World Citizens.
The real property acquisition of nationals of the following countries depends on some provisions and permissions:
What if I want to sell later on? Are there any costs or complications involved?
Freehold resale costs are around 5% (comprising sales tax, local documentation and legal fees). Property may be sold to Turkish, or foreign nationals without restriction. Because of the change in law (Decree 32 August 1989) the lira is now convertible so proceeds of the sale of a property can be converted to whatever currency and subsequently transferred to any country you choose.
Do I have to pay Capital Gains Tax? Capital gains made from the sale of a property will be taxable in Turkey if the owner is a Company.
Individuals do not have to pay capital gains, provided they have owned the property for four years. In the UK capital gains may be taxable depending on the individual’s situation.
Current tax conditions were originally agreed in a double taxation treaty signed in 1986. These were amended in October 1988 and cover the reciprocal agreement relation to income tax and corporation tax in Turkey and income, corporation and capital gains taxes in the UK. This also includes a non discrimination clause "Nationals of a contracting state shall not be subjected in the other contracting state to any taxation or requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other state in the same circumstances are or maybe subjected". (Article24). However, we would always recommend you consult an accountant because each individual’s circumstances are different.
I’m buying off plan. Is the process different? If purchasing off-plan from a builder, there will normally be scheduled payments arranged during the construction of the property. These arrangements will be detailed in your contract, along with any other extras from the builder and any penalty clauses you may want to add. Unlike the UK, it is not necessary to use a solicitor to conduct the conveyance for you. Your licenced agent can do this for you! However, for your own peace of mind, you may wish to use the services of a solicitor and we can also arrange this. It costs approx £ 350. Didim Sun Properties prefer foreign buyers to buy through a solicitor.
What can I buy?
Freehold property or land may be purchased by most foreign nationals, from a Turkish national or another foreigner, provided the property is in the local district "Belediye". Didim Sun Properties hold a full list of those countries who have reciprocal agreements regarding property purchase with Turkey.
If property or land is outside the Belediye long leases can be arranged. Didim Sun Properties use a leasing facility designed by two of Turkey’s largest banks, Koc Bank & Garanti Bank. The property is purchased in the banks name. The bank then leases it to the purchaser. The lease can subsequently be transferred to a third party if he/she wishes without restriction.
How do I pay for it my purchase?
It is advised that funds for the purchase should be transferred into the country through a Turkish bank and specifically identified for that purpose. The foreign currency should be sufficient to cover both the purchase cost plus other costs incidental to the purchase. You should keep all receipts to prove the original purchase to enable easy repatriation.
Didim Sun Properties will help you to open a bank account in Didim. Your account can be in GBP, Euros or Turkish Lira (or all three!). Funds can be transferred by UK banks for a charge to the account holder or through a foreign exchange agent which is usually free and tends to offer a better exchange rate than the UK High Street banks.
A recent decree aimed at aligning Turkey’s currency laws with the EU states that importation of foreign currency is free, it cannot be subject to any legislation and it’s origins cannot be questioned. Decree 32, August 1989 Article 4.0.
Are there additional costs?
Yes, with some purchases from developers all costs (excluding lawyers fees) are included, but with individual properties and some small developers only the purchase price is shown. This is always made clear on promotion material. The extra charges involved for a freehold or leasehold purchase payable by the purchaser amount to approximately 10% of the purchase price paid. These are broken down as follows:
4% purchase tax (stamp duty) on registration of freehold, (new properties can be exempt from purchase tax).
Min £500 or 1% of the sale price which ever greater legal fees variable dependent on the amount of work, i.e. full investigations, proxy, translations, etc.
6% of the sale price property broker commission split 50/50 between buyer and seller.
It must be noted that the sales price for leasehold properties will be subject to a 5.5% lease arrangement fee.
Utilities connection fees
Remember, all of your additional costs should be detailed in your sales contract so you will be aware of what they are before you sign to make any purchase. If your agent doesn’t detail all of the costs for you, ask yourself why?
About ongoing costs?
Property tax, paid annually at a fixed percent of the declared value, (on a new home a 25% reduction is given until the revaluation conducted after the first five years). This is the Turkish equivalent of Council Tax and is a matter of a few pounds per year (free for the first year).
Building insurance is compulsory for leases arranged through Yapi Kredi, the premium is approximately 2 per mil. It is also mandatory to purchase State earthquake insurance.
Gas is normally used for cooking and can also be used for water heating. Cylinder refills cost approximately £10.00 and lasts approximately a month for water heating and two months for cooking (a deposit is taken for each gas cylinder).
Electricity is cheap approximately £0.05p a kilowatt. Bills are payable monthly at a local bank or directly at the Turkish Electricity Board.
Water costs approximately £0.40p per ton (1,000 litres on mains supply) or £3.00 per ton when bought from a bulk tanker.
Site maintenance, groups of houses, particularly developments will form a management service, committee or company, to maintain common facilities, common gardens, repainting, etc. The cost of this will vary from development to development. Their conduct is governed by Turkish law.
About my Tax situation?
Capital gains made from the sale of a property will be taxable in Turkey if the owner is a Company. Individuals do not have to pay capital gains, provided they have owned the property for four years. In the UK capital gains may be taxable depending on the individuals situation. Current tax conditions were originally agreed in a double taxation treaty signed in 1986. These were amended in October 1988 and cover the reciprocal agreement relation to income tax and corporation tax in Turkey and income, corporation and capital gains taxes in the UK. This also includes a non discrimination clause "Nationals of a contracting state shall not be subjected in the other contracting state to any taxation or requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other state in the same circumstances are or maybe subjected". (Article 24). However, we would always recommend you consult an accountant because each individual’s circumstances are different.
Can I rent my property?
Yes, you can. In fact there is a high demand for rental properties in Turkey. You may like to employ the services of a local agent to assist in letting your property and Didim Sun Properties is able to do this, should you wish to use us.
Please be aware that rental income is liable for tax assessment in either the UK or Turkey and will be payable depending on the personal situation. A booklet describing all elements of the tax situation is available in PDF format from the Turkish tax office at www.http://www.gib.gov.tr/fileadmin/beyannamerehberi/rental_income.pdf
The selling costs?
Freehold resale costs are between 5% (comprising sales tax, local documentation and legal fees). Property may be sold to Turkish, or foreign nationals without restriction. Because of the change in law (Decree 32 August 1989) the lira is now convertible so proceeds of the sale of a property can be converted to whatever currency and subsequently transferred to any country you choose. If the property is subject to a Yapi Kredi lease then the transfer costs are just over 1%.
If you have any questions about the general buying process that are not covered in this article, you should ask your agent / developer direct or drop Didim Sun Properties a line and we will be happy to help you. www.didimsun.com
