THE LETTINGS MARKET

Thanks to the low property prices and rapidly expanding tourist industry, buyers can expect to generate rental yields of around 7% per annum. The market is still in its infancy, but it’s a good one for jet-to-let investors. The concept of buying to let in Turkey is still a relatively new concept, but there are some fabulous entry points for the canny investor. The best opportunities are in southern Turkey, although things are picking up in Istanbul too. A three-bedroomed detached villa on the Bodrum Peninsula with sea views can generate around £650 a week in peak season. If the property has its own pool then you would expect to receive an extra £100 to £150 a week.

You will be liable to pay tax in Turkey on any rental income generated in the country. There is a double taxation treaty in place between Turkey and the UK so you won’t be paying tax twice. Rental income is taxed as income tax, but Turkish income tax law exempts a certain amount of rental income from residential buildings per annum. For 2007, residential rental income up to YTL2,300 (approximately £800) is exempt from income tax.

RENOVATING A PROPERTY

While inland there is no shortage of renovation properties, on the coast, older homes are scarce and titles can be difficult to check. You will also find that while there are plenty of construction companies and building work is cheap, with workers paid a mere £10 a day, it can be difficult to find a builder who will modernise a property to Western standards. Recommendations are the best way to find reliable workers and architects, but even then, building permission can be hard to secure, with a huge amount of red tape surrounding permits.