Colordarcy - Key Ready Or Off-Plan Istanbul Property? Which Is Best?

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It has been suggested by Turkish Newspaper Hurriyet Daily News (16th Feb) that “recent legislation change in taxation for properties might damage the property sector” in Turkey. However Colordarcy are keen to point out that the solution to avoiding the new tax is to invest in key-ready properties.

Key Ready Istanbul Property
One of the dangers of buying off-plan property, particularly in an emerging market such as the one we have in Istanbul, is if there is a change in market conditions or a municipality decides to pull its planning permission...

Loxley McKenzie, Managing Director of Colordarcy commented, “One of the dangers of buying off-plan property, particularly in an emerging market such as the one we have in Istanbul, is if there is a change in market conditions or a municipality decides to pull its planning permission, investors could end up waiting a long time for completion of the property take place.”

According to Colordarcy what was once so exciting about buying off-plan (and still is) is the potential return investors can make as the value of the property rises on completion. In theory, investors can invest in a property and then sell it in the window of opportunity that lies between the start of construction and completion and this is where a large return is made market conditions permitting.

Investors made (and sometimes lost) a lot of money doing this in the boom years and there are still opportunities to do this today, but it is a high stakes game that could just as easily be lost as won according to the firm.

Investors can make it easy for themselves by avoiding anything that looks and feels like a gamble in the current market conditions.

Colordarcy claims that people who are not prepared to take a risk on their property investment in emerging overseas markets like Turkey can invest in key-ready property, which still has the potential to rise in value by 10% a year.

The old argument that buying off-plan is the most profitable route may not stack up when external factors come into play. The most recent of these is the new KDV tax rise which now applies to apartments that are less than 150 square metres in size.

For those who are investing in key ready Istanbul property, KDV tax is unlikely to be an issue as plans would have been submitted in 2012.

Those investors who are buying off-plan now will need to check the small print or hire a Turkish lawyer to check the details very carefully to see if the 18% tax increase has not been added on to the price of property.

With key-ready property on the other hand, investors are unlikely to encounter any sleepless nights as the building work will have been completed.

Another bonus is that investors can start collecting their rental income and profits earlier with a key ready property. So what they sacrifice in a higher price, they gain back through the return they get on the property according to Colordarcy.

Colordarcy analysts say investors should look at property investment as a long term strategy and Istanbul is an emerging location, so rather than take a gamble investors can take the key-ready route instead.

Notes to the editor:

Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.

For more information, supporting pictures or logo artwork, please contact:

Brett Tudor
PR Manager

Tel: +44 (0) 207 100 2393
Email: press(at)colordarcy(dot)com
Web: http://www.colordarcy.com/

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Brett Tudor

Loxley McKenzie
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