You Don’t have to be Rich to own Overseas Property

Its no surprise that many buyers are looking at spending less on their overseas property. The average spend in 2007 was £100,000 approx. However, that is still far too much for many people as I can assure you that you can spend a lot less and get an all year round climate thrown in - read on.

Property or a car?

A recent enquiry of overseas property was wondering whether they could afford an overseas property. However it quickly became apparent that there was a way. We got chatting about cars and how people are buying smaller ones these days. Their current car a seven year old Toyota, that they were looking to replace, still did the job required of it and it was clear that there was a choice to be made.

As they were thinking of buying a nice new VW Golf costing around £20,000 / €25,000 / €35,000 they realised that by foregoing this luxury a miss for a few years, they could free up spare savings to spend on an overseas property - with no mortgage. They were happy to take a ten year view and in the meantime they reasoned that the property will give them far more enjoyment than a new car.

There are still quite a few countries you can buy new property for £20,000. You, like many, probably don’t know where to start and are uncertain of the risks involved.

Which country?

I market several developments in Hurghada area in Egypt. An area that really surprises my clients when they visit. The challenge is on to find anywhere else at these prices with this level of infrastructure and tourism within 4.5 hours flight of anywhere in Europe. Hot year round sunshine must be guaranteed and it must have existing tourist and business infrastructure.  Parts of Morocco may be in contention - but infrastructure on the coast is in its infancy and accessibility is patchy.

25% Shared Freehold Ownership - £12,500

An alternative to buying an outright property is to buy in a new scheme, which has won international property award called Meltimi Residences.

There are a limited number of off plan apartments available on Meltimi Residences, this award winning development in Gulluk, on the Bodrum Peninsula, Turkey with 25% shared freehold ownership and 5 year TAX FREE exit strategy. Just 15 minutes from Bodrum airport.

Here is the scheme - suitable for people looking for both an investment and a place in the sun at a fraction of the cost:

All apartments have sea views and construction well under way, with the project fully financed for completion.

Ownership: There are 4 shares per property and each has a 25% share of the freehold with the shareholders name on the Tapu (property deed). Owners can of course purchase more than one share and benefit from a higher potential return and personal use.

Personal Use: Each owner has a minimum of 12 weeks personal use per annum on a rotating calendar. The calendar ensures that each owner has a minimum of 2 weeks occupancy between July and August with the rest of their weeks spread throughout the year in 2 and 3 week blocks. Owners can of course rent out their properties direct or through the rental pool.

Exit Strategy: Unique to our offer is a 5 year exit strategy which provides owners with the benefit of an excellent ‘lifestyle’ or rental opportunity, 5 years capital appreciation and 0% capital gains tax under the current Turkish tax system. In the event that all shareholders are in agreement then this term can be extended or individual shares can be sold.

Prices: Prices start from £12,500 for a share in a 1 bedroom apartment and go up to £19,500 for a 3 bed apartment. Payments are made in stages through a secure escrow payments system ensuring security and peace of mind.

Most property in Turkey is bought for cash, and therefore the consequences of over exuberant lending and credit crunch fall out, apply to Turkey probably less than most countries.

So, be it Egypt or Turkey, being rich to buy overseas property is not a requirement.  The current climate may prove in hindsight the perfect time for those wanting to get in at low prices. Please register for more details and more articles like these and, wherever you are thinking to buy property, be sure to register for my free download “What Everybody Ought to Know About Property Due Diligence”