Your questions answered

Turkey & Florida

BuyAssociation.co.uk Property Editor Paul Collins tackles your questions on buying overseas in some of the most popular locations, and advises on how to stay safe.

Buying in Turkey

I am looking to purchase a new apartment in Gulluk, Turkey, and have a couple of questions. Is this a good location in which to buy? Is a new marina being built here? Is the rental market oversupplied? The agent is talking about 30% capital growth in year one. Is this feasible? Are UK flights to Bodrum going to increase?

I'll try to deal with your questions in order, and hopefully this should give you a good idea as to your next steps on the path to buying overseas. Firstly, Gulluk is one of the more up-and-coming areas of the Bodrum peninsular, so could offer some good opportunities for both buy-to-let investments and cheaper family holiday homes. The area is well-served by flights from the UK, a situation which is likely to improve even further as some of the low-cost airlines begin to spread a little further afield - easyJet began flights to Egypt this summer, for example.

I don't have any information about a new marina being built, but that doesn't mean that it isn't happening — it may just be that details haven't yet been released in the UK. It is fair to say that the rental market in some parts of Turkey is a little over-supplied, but Gulluk does not yet seem to be afflicted by this. One of the keys to successful renting is to try to buy 'best of breed' properties. These are the best property of each type on a development, as they will always sell and rent faster than other properties. The best one bedroom apartment on a development should rent more effectively than a mediocre two-bedroom, and gain in value more efficiently.

Thirty per cent growth per year sounds more than a little optimistic, so make sure you examine these figures carefully. Ask why the builder is convinced it will go up so quickly, ask for evidence of what he is saying, ask as many questions as you can, and this will give you a good idea as to the quality and professionalism of the developer, as well as the investment potential of the area.

Boat best bet?

After another holiday in Turkey we are thinking of buying a gulet which is berthed in Marmaris. We have done the necessary investigations but are curious of any hidden pitfalls we may have overlooked.

This could be a great way of buying in Turkey, and you will certainly have a unique home which should have an advantage over others should you wish to rent it out. It even gives you the opportunity to move to another area without selling up! I think the biggest consideration you need to make is for the maintenance of the boat as it will need to come out of the water periodically to be checked, resealed and repainted.

Aside from that, it is just the eccentricities of living on a boat that you need to be sure you are happy with — the fact that water and heating systems are completely on-board, that you will be moving very slightly all of the time, and not having any flat surfaces at all!! Otherwise, you have to consider the boring bits like making sure you can fund it independently as you won't be able to get a mortgage on a boat, making sure the legal agreement of sale is watertight (pardon the pun) and that you have the appropriate registrations and permits.

Capital gain

I have paid my first and second installments for my apartments in Turkey. Now the developer wants €40 for military clearance fee. My question is, I want to sell these apartments and was told by the developer to give them four months notice before completion. Will I be liable for capital gains tax?

I'm not sure why the developer wants to have notice of your selling the apartments — you are free to do what you want with your property and assets as far as I can see – unless they are handling some of the registration of the properties and the legal aspects for you.

You will be liable for Capital Gains Tax on the apartments if you do sell them and make a profit as you haven't owned the properties for more than five years, which is the point at which you would qualify for zero tax on the capital gain.

The fees for the military checks are normal for the purchase of any property in Turkey and may take a few weeks to come through, depending on what time of the year you submit them. So long as you have the appropriate paperwork in place, there should be no significant problem with this.

Finding Florida

I’m looking as a family to buy a 3/4 bedroom villa in Florida and really am in need of some advice.

Buying in Florida has always been a popular option for British buyers because of the obvious family attractions and superior climate, but with the troubles in the US housing market and the weakness of the US Dollar, more buyers have been attracted to make the move now rather than later.

The first place to start is by reading our Buying Guide to Florida, which is free to access and has a great deal of the general information you need. The next step might be to attend one of the many property exhibitions that take place around the country to get an idea of what your budget will get you. Then, you should make sure you visit the area in which you decide to buy on a few occasions to ensure that you would be happy to spend your time there regularly. The more research you can do before you even get into conversations about individual properties, the better.

The general rules to buying property overseas work the same in every destination: Get an independent lawyer to check over everything you sign, don’t over-stretch yourself financially, make sure you arrange finance and currency exchange well in advance, and don’t be rushed. Property sales anywhere in the world is a competitive business, so try to keep a level head.

Casting the 'net in Florida

Is there a website in Florida, similar to the property search sites in the UK, where I can search properties on a price/area/features basis, irrespective of who the realtor/estate agent is? If so, please can you advise of such websites?

There are a few international property portals that can help in this way, but none of them are as complete as the ones found in the UK — property information on the internet is one of the areas in which the UK excels. You may like to try zillow.com or properazzi.com for listings.

There is a central database of properties for sale in Florida, but this is available only to professional licensed realtors. The system in the US works in a slightly different way to the UK, where you work with a realtor who has access to all of the properties for sale in the State. The best way to find the property you want is to find a realtor you trust and who has a good reputation, and they should be able to source what you are looking for. As ever, make sure you also have independent legal advice on hand to guide you through the buying process, and never sign anything you are not completely sure about, or don’t understand.

Finding a good agent

How do I find out the credentials of an agent based in England? Before I put down a deposit on a property overseas with them, I would like to know more about this company. Could you please advise me of any website forums I can check out first?

As an impartial website and buying guide, we are unable to recommend or otherwise individual developments, properties, agents or developers to you. However, it is essential to make sure that you have independent legal advice in place to check all contracts, planning permissions and title deeds. If there is something you are not sure about, be sure to ask awkward questions and keep asking if you don't get satisfactory answers. The more you question a developer or agent, the better idea you will have of how much you trust and want to work with them in the future. Ask to see the planning permission to pass on to your lawyer, ask if they are members of any professional bodies and then check with them for details of the company — some of the biggest are the AIPP, FOPDAC or the NAEA. These associations are useful to provide an idea of a company’s credentials, but if the company is not yet a member it does not necessarily mean they are not to be trusted.

You can also ask for testimonials form other clients they have worked with in the past, or ask to see previous projects they have worked on. If at any point you do not feel comfortable or you have any suspicions, walk away. There will always be another opportunity, and another property to buy, so you have the time to make the right decision for you. This is likely to be the second biggest purchase you will ever make, so it is essential to make sure it is the right one.

Money matters

As the Euro is now so high against the Pound, when would be the best time to purchase a property? I do get confused on this one.

This is a question that causes some confusion, and it is best to make sure you take expert advice when planning your currency exchange provision. At present, the Euro is in a strong position against Sterling, so in fact many British buyers are finding that the property they thought they could afford to buy in Europe has become more expensive. On the other hand, the US Dollar is currently weak against Sterling, so buyers over there are finding properties that have suddenly become much more affordable for them.

This is where the specialist currency exchange companies come into their own, as they will allow you to fix an exchange rate for up to two years in the future. For example, if you have decided that you want to buy a property in Florida on a new development, and knew that it would be complete in 18 months' time, you would be able to fix today's exchange rate for the time of your final payment. This has the dual advantage of allowing you to know exactly how much your property will cost you, regardless of changes in the exchange rate, and will protect you from the very real possibility of the US Dollar strengthening its current position in the intervening time. On the other hand, as the current rate for the Euro against Sterling is unfavourable, it could be prudent to wait for a while to see if Sterling recovers somewhat (of which there is no guarantee).

Money markets are fickle things, and even the experienced traders find it hard to predict at times. The best advice is to buy when you are ready, make sure you are not overstretching yourself financially, and make sure you shop around for the best deal on exchanging your currency. Above all, avoid using your High Street bank for this task, as you won’t get as good a deal as with the specialists. Try Moneycorp to see what they can do for you – click here for more details.

All circumstances vary. BuyAssociation provides general advice for guidance purposes only. It is strongly recommended that you seek professional advice before making any purchase.

Related Articles

• Buying a Property in Turkey
• Buying a Property in Florida