Investing in Turkey
- Thread starter Puppeteer
- Start date
From the Australian point of view, it's no different from anywhere else o/s. You get taxed on profits, and can deduct expenses.
You cannot deduct o/s expenses from Australian income. You cannot even deduct o/s passive expenses from o/s active income. (eg- if you had a job in England and an IP in NZ, you could not negative gear your NZ expenses against UK income). But you can carry losses forward for a period of time (seven years I think)
You cannot deduct o/s expenses from Australian income. You cannot even deduct o/s passive expenses from o/s active income. (eg- if you had a job in England and an IP in NZ, you could not negative gear your NZ expenses against UK income). But you can carry losses forward for a period of time (seven years I think)
Thanks Geoff,
I didn't even think about offsetting losses in this case. The properties that I've seen over here are seriously cashflow positive. $130K-$200K purchase price with weekly rents up around the $250 mark, and I haven't started looking in earnest yet.
I'm more concerned with sovereign risk and local legislation. I know that there are issues with Earthquakes here, and properties can be condemned if the local earthquake inspector says it's not up to scratch. Apparently there are deductions available for depreciation etc, and the income tax rates aren't so bad (though payment of tax in Turkey seems optional, with 60% of people not paying any tax at all).
With the Greek Olympics coming up, and Turkey's drive for inclusion in the EU, I can see this place becoming more and more popular, and the stricter fiscal policies imposed by the EU will help the government with reeling in the tax cheats and having more cash to improve infrastructure.
I was just wondering if anyone had experience with property here in Turkey. It's a nice place and deals seem good, but I'm not sure what pitful's await the unwary investor.
I didn't even think about offsetting losses in this case. The properties that I've seen over here are seriously cashflow positive. $130K-$200K purchase price with weekly rents up around the $250 mark, and I haven't started looking in earnest yet.
I'm more concerned with sovereign risk and local legislation. I know that there are issues with Earthquakes here, and properties can be condemned if the local earthquake inspector says it's not up to scratch. Apparently there are deductions available for depreciation etc, and the income tax rates aren't so bad (though payment of tax in Turkey seems optional, with 60% of people not paying any tax at all).
With the Greek Olympics coming up, and Turkey's drive for inclusion in the EU, I can see this place becoming more and more popular, and the stricter fiscal policies imposed by the EU will help the government with reeling in the tax cheats and having more cash to improve infrastructure.
I was just wondering if anyone had experience with property here in Turkey. It's a nice place and deals seem good, but I'm not sure what pitful's await the unwary investor.
One more thing that I forgot to add, was that inflation is still relatively high over here, so borrowing would need to be in local currency, especially with rental income being in Turkish Lira.
There's a currency risk, for sure, but if I treat it as a seperate entity with finance and income in the local currency, then that should minimize the risks there? Any comments?
There's a currency risk, for sure, but if I treat it as a seperate entity with finance and income in the local currency, then that should minimize the risks there? Any comments?
I'm sure there are good and bad parts of Turkey. Like most countries you'll get a better return in the regional areas, especially in the north and south east near the Iraqi and Syrian borders.
Yes inflation is high (~26%) but it has come down a bit from 60%+ several years ago. The locals deal with this by selling and renting property in US$, especially in the cities.
A lot of Brits are buying there, especially along the south west coast from Antalya to Bodrum where they like to go holiday. There is some speculating going on because if Turkey joins the EU it will have a very strong currency, but i'm not sure that will happen until they sort out their Kurdish problem.
Yes inflation is high (~26%) but it has come down a bit from 60%+ several years ago. The locals deal with this by selling and renting property in US$, especially in the cities.
A lot of Brits are buying there, especially along the south west coast from Antalya to Bodrum where they like to go holiday. There is some speculating going on because if Turkey joins the EU it will have a very strong currency, but i'm not sure that will happen until they sort out their Kurdish problem.
Turkey
You may find this of interest...
http://www.fool.co.uk/search/query....go=1&selectpage=full&go=1&qt=turkey&button=Go
Regards
Richard
You may find this of interest...
http://www.fool.co.uk/search/query....go=1&selectpage=full&go=1&qt=turkey&button=Go
Regards
Richard
Here are some search results. Haven't read any myself.
http://search.escapeartist.com/search.cfm?q=turkey&t=all
http://search.escapeartist.com/search.cfm?q=turkey&t=all
personally i would stay away from turkey.
i am turkish and in turkey a brand new car is bought, for example $20,000 can be sold for $22,000 1 yr later !
property on the other hand seems to only ever go down and tenants are one BIG problem. The problem, is they dont pay the rent if they dont want to !!
i am turkish and in turkey a brand new car is bought, for example $20,000 can be sold for $22,000 1 yr later !
property on the other hand seems to only ever go down and tenants are one BIG problem. The problem, is they dont pay the rent if they dont want to !!
I have no idea if this is the case in Turkey or not, but in some middle eastern countries, westeners are basically second class citizens, and have few rights in the eyes of the law. Add to this various cultural attitudes which might be very different to our own and I would suggest that unless you really know what you're doing, investing in some parts of the world could be and extreamly high risk proposition.
Personally, I'd feel more comfortable investing in countries which are culturally and leagally closer to my own environment. This may or may not be the case in Turkey.
Personally, I'd feel more comfortable investing in countries which are culturally and leagally closer to my own environment. This may or may not be the case in Turkey.
Heaven forbid!PT_Bear said:
What have we ever done to them to make them treat westerners this way?
We've spent years civilising the middle-east - taking their land, supporting unpopular governments, buying their natural resources at dirt cheap prices, using their people as pawns in European and Global wars - they should be thanking us!
And we certainly treat them like royalty in our own countries and with the same rights.
Why, here in Australia we allow the people fleeing those unpopular governments that thw western nations helped put into power the right to be detained indefinitely in inhumane conditions - and we don't limit this right to adults - we even extend it to the kids as well!
hmmmmmmmmmmmmmm
Cheers,
Aceyducey
PS: PT_Bear, I'm not commenting on your personal views or outlooks, just on the treatment and views prevalent in our free western democracy.
geoffw said:
Geoff you're a classic
I'd hate you to think that you're little one liners go unnoticed
Julie M
It's interesting to be a European in Asia.PT_Bear said:
Most of the time you are treated very well.
Many times you are treated as a money source.
On a very few occasions, you are treated as a second class citizen- and probably quite fairly.
My wife is not of Australian origin. She has been treated often as a second class citizen- more frequently than when we lived in England. That surprised and disappointed me.
Aceyducey said:
Gee Acey go blow some balloons up.........
I dont know anyone that has invested in Turkey but it will probably have the same hurdles and red tape as what i witnessed in Greece (Rhodes) . Cant be any worse then most Aussie goverment dept/ councils etc ;-) Just the language is different.
Puppeteer said:
At the time of writing this thread is a bit old but if anyone is interested in investing in Turkey in 2006, I can point them at my blog (notwithstanding advice on this site and forum). It's currently non-commercial (yes, really!) and expanding weekly. I'd appreciate any Australian input, especially regarding the tax position on overseas property investments.
Thanks
