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.
Overseas money transfers
Overseas property buyers are often unaware just how important devising a currency strategy is to the success of their purchase. When buying overseas you will need to transfer money to your chosen destination to fund the purchase, exposing your budget to exchange rate fluctuations. If this process is not managed effectively even a small shift in the rate of exchange could cause the price of your dream home to disappear out of reach.
Smart Currency Exchange are experts at helping their clients manage the risk associated with transferring money to another country.
With over a decades experience helping people to buy property overseas, Smart Currency Exchange are experts at helping their clients manage the risk associated with transferring money to another country. They will work with you to understand your requirements and implement a currency strategy that works for you. One solution might be to lock in an exchange rate that you’re happy to trade at for up to a year using a Forward Contract, effectively setting the price of your property in stone. Contact Smart Currency Exchange today to discover how they can help you make your dream of buying in Turkey a reality.
Save money when buying overseas
Whether you are buying a property abroad, making regular payments, sending money overseas or back in to the UK, you want the most cost-effective, safe and easy way to transfer your money.
That's where Smart Currency Exchange can help. As one of the UK's fastest-growing currency exchange specialists, we save our clients thousands of pounds every day by minimising the risk associated with transferring money overseas.