Planning your Finances before you move
What financial considerations must you take into account when looking to buy property in Turkey?
Before you can really get the ball rolling on your Turkish property purchase, you need to sit down and consider the numerous financial elements of the move. To help ensure you cover all the bases, here are the key financial points you need to consider from the word ‘go’.
Financing your property
First things first – you need to sit down and work out your budget. How much do you have to spend on the property, and how much of a deposit do you have saved? If you plan on relying on a mortgage, you should secure it before you commence your search, otherwise you just risk being disappointed. There are mortgage options in Turkey, although fewer than in western European countries like Spain. They will have varying conditions so it important to find a mortgage that suits your specific needs.
How to avoid hidden costs
If you have bought property before you will know that the final price you pay is likely to be well above the advertised price tag of the property. There are a number of hidden costs and fees associated with purchasing, and it’s important that you make yourself aware of these at the start of your journey so you can avoid nasty surprises. So-called ‘hidden costs’ to be mindful of include buying costs, legal fees, ongoing maintenance costs, and the amount you wish to set aside for furnishing, redecorating or renovating your property. You’ll also need to factor in the cost of transferring your funds to Turkey.
Download your free copy of the Turkey Buying Guide for a full list of all the hidden costs associated with buying in Turkey.
Few of us enjoy tax matters, but when you’re hoping to buy such a huge asset in another country, and potentially to relocate, you need to ensure your tax affairs are in order. Your tax liabilities will vary according to your circumstances. For example, will you still be earning a UK wage? Have you kept a UK property? If so, are you planning on renting it out? As liabilities differ wildly depending on the circumstances of the individual, we always recommend speaking to a tax expert to ensure complete peace of mind. It’s also important to consider how inheritance laws will affect you once you’ve made the purchase.
We often come across people who have no idea how important a sensible currency strategy is to the success of a large overseas purchase. When buying in Turkey, you’ll repeatedly need to transfer money across to fund the purchase, whether it’s to pay the deposit, to cover certain buying costs, or to fund your time over there. If not well managed, you can lose considerable amounts of your hard-earned savings each and every time you make a transfer. Many buyers wrongly assume their usual High Street bank is their best port of call for currency transfers, when in fact, you’re likely to encounter longer transfer times, larger fees and less competitive exchange rates than you can secure with a currency expert like Smart Currency Exchange. They can lock in exchange rates at better rates than those offered by the bank. On any property purchase this could save you thousands of pounds – which we’re sure you’d rather be spending on enjoying your new life in Turkey! Smart Currency Exchange also doesn’t charge fees on transfers of more than £3,000.
With over a decade of experience helping people to buy property overseas, Smart Currency Exchange is an expert in the intricacies of the buying process, and understands the obstacles you can expect to encounter. This knowledge allows Smart to implement a strategy for your international currency transfers that saves you money and time. Additionally, it is able to lock in an exchange rate that you’re happy to trade at for up to a year, which means you can effectively set the price of your property in stone. To discover how much you could save on your Turkish property purchase, get a free quote from Smart Currency Exchange today.
The Turkey Buying Guide takes you through each stage of the property buying process, with practical recommendations from our experts who have been through the process themselves. The guide will help you to: