Britons opt for Turkey’s investment potential

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by Gill Montia

As the UK property market looks set for a period of stagnation, the number of Britons lseeking to invest in bricks and mortar overseas is rising.

Turkey appears to be topping the list of popular destinations, with overseas mortgage broker Conti Financial Services reporting a 147% year-on-year rise in enquiries in 2007. By contrast, enquiries for Spain fell by over 28% last year.

Turkey has recently reformed its mortgage laws, making finance available to overseas buyers and figures from estate agent Knight Frank, show prices in the country rising between 15% and 20%, in 2007.

However, a one-bedroom flat can still be purchased for around £25,000; two-beds for £50,000 and villas for £90,000.

Finance for Turkish homes can be secured with a lender in the country, through specialist brokers such as Conti.

Buyers will need a 25% deposit, and sterling mortgages are only available over 15 years.

If the loan is in euros, British investors living in the UK at the time of applying for finance may be able to borrow up to 100%, but only for property in certain parts of the country such as the capital Istanbul, or Alanya on the Turkish Riviera.

Simon Conn, Conti’s sales and marketing director, comments: “While Turkey is being hailed as the ‘new Spain’, it is also undergoing some of the same problems, such as corruption and bad planning – although it is learning a lot quicker.”