TweetGiven we live in straitened times, we all seek to get more for our money. This is no different in property buying. So, for those in a position to be able to consider an overseas property investment, it might be as well to also consider how currency fluctuations affect the purchasing decision.
Whilst Sterling does not seem to have appreciated against the Euro as much as one might expect, there are still great buys in, and close to, Europe.
Turkey, the “IF” of more affordable property (Istanbul to Fethiye)
For value-for-money outside (partially) of the Eurozone, Turkey has got to top the agenda. At around 2.85 Turkish Lira to the pound, the buying power of the British property buyer has strengthened by around 20% since last year Summer. This makes buying in Turkey even cheaper, which already represents great value-for-money. It is possible to buy a lovely 3 bed villa by the sea for not much more than £100,000, or a 2 bed apartment by the sea for just over £50,000.
Since June 2003, when Turkey liberalized its property market for foreign buyers, over 5000 foreigners have purchased property in Turkey. The property prices in Turkey are still significantly lower than other European destinations. But as Turkey is becoming an increasingly popular place to visit, or buy a holiday home, upward pressure on prices are starting to take hold.
What’s more, a proposed relaxation of rules around non-Turkish nationals buying property, is likely to create a $10 billion property market, spurred by sales to Arabs. Already sales to foreigners reached $2.5bn in 2010, up 40% on 2009.
This means an influx of Arab buyers, from countries such as Saudi Arabia, Syria, Dubai and Qatar, once the legislation is passed, earmarked for 2012. There is already a lot of increased activity among Arab buyers, particularly in Istanbul.
The proposed change in Turkish law would drop reciprocity conditions, whereby only foreign nationals are able to buy property in Turkey, whose host country allows Turkish people to buy in their country.
Poland, Krakow to Warsaw become cheaper
And it is true to say not all countries in Europe are suffering in quite the same way. Polish cities are a great place to look for investment property. Whilst it is in the EU, Poland has not yet adopted the Euro and Sterling has strengthened against its local currency, the Polish Zloty.
It has recovered a lot of ground and is back to over 5 Polish Zloty to the pound, up by more than 25% on say 12-18 months ago. This means property can be 25% or more, cheaper. There is also a strong local market in major cities like Krakow, so there is a more assured exit plan should you need to sell, as the locals are increasingly buying their own apartments and homes.
Property Venture®, is an independent, Turkey & Poland property expert, who helps people buy holiday homes and investment property in Europe and the Mediterranean, more easily and safely than they can on their own, because they offer grounded common-sense advice.
Their focus is mainly in Europe: Holiday Homes in Spain, Properties in Turkey , Poland Property, Morocco Property, Property in Cyprus, Bulgaria property and Montenegro property. As overseas members of the professional body: National Association of Estate Agents, the NAEA, this means they have been subjected to the membership criteria and have signed up to the professional code of conduct, established to help potential buyers or investors, buy overseas property with confidence.
Featured or Mentioned in: Sunday Times, Times Online, Daily Mail, Mail on Sunday, Independent on Sunday, Homes Magazine, HSBC Liquid Magazine, Easyjet Magazine, London Homes & Property, A Place in the Sun, The Telegraph
Tags: City Investment Apartment, Euro, European property, Fethiye, investment property, Istanbul, Kraków
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