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High Yields Show This Istanbul Deal is no Turkey!

EXCLUSIVE NEW DEAL!

We have been studying a few Overseas markets over the last year – but have not seen much that has appealed until now!
 
There are a great many factors pointing towards Turkey (and Istanbul in particular) as a great place to invest – and now we have struck up some strong agreements with lenders there, we can tick all the boxes:

• Finance available for foreign investors
• Strong rental market, ensuring cash-flow is good
• Strong local demand for rental and re-sales

Our checklist has ruled out a great many countries (and cities) right now – but Turkey is performing strongly and we are delighted to be finalising this great deal there.

The investment

We are just finalising our deal in Istanbul, with a full-time team (all English) on the ground already. Prices are still incredibly low for a capital city, and we are targeting studio flats and one-bedroom apartments to fit in with the most affordable end of the market and highest yields.

Price increases in these properties in the last two years range from 15–25%, with anticipated growth at 15% pa for the next five years, bumped up by shortage of supply and massive demand – plus good borrowing.

To give a couple of examples:

Istanbul – Yesil

• Phase 1 launch date 18 months ago
• Studio price 18 months ago: £25,000
• 1-bed apartment price 18 months ago: £33,000

Current prices (phase 3 launch):
• Studio: £37,000
• 1-bed apartment: £48,000
• A growth of 45%.

Istanbul – Oney

• Phase 1 launch date 12 months ago
• Studio price 18 months ago: £32,000
• One-bed apartment price 18 months ago: £40,000

Current prices (phase 2 launch)
• Studio: £36,000
• One-bed apartment: £46,000
• 10-15% growth in 12 months

Capital costs covered

The yields have to be the biggest attraction in Istanbul.

Current rental income figures are:

• For a studio:£315 yield – return on current prices 9.5%
• One-bed apartment in area: average of £420 yield – return on current prices 10%

If we assume a mortgage of 70% on property including a furniture pack then the repayments would be:
• Studio: £270 per month
• One-bed apartment: £337 per month based on 15-year full repayment @6.15% sterling mortgage

So this covers costs and pays off the capital, while at the same time growing in value!

We are so confident on the rental market in the capital that we shall give a two year rental guarantee as well on our developments!

Turkey’s growth indicators

Here are some of the reasons we were attracted to Turkey…

1. Retail growth. Europe's largest mall opened in Istanbul in November 2009, near the centre of Istanbul’s European side. Occupying 495,000m2 with 175,000m2 of leased retail area, it is expected to attract 25m visitors a year and in the first six weeks, had more than five million visitors.

2. Economic Growth. According to a European Union economic report, Turkey will become the fastest-growing country in Europe in 2010, with a 2.8% growth rate.

3. Tourism Growth. Tourism grew 1.47% in Turkey while at the same time was shrinking 7% in the world in the January-July period of 2009, according to the World Tourism Organization (WTO).

4. The tour operator’s choice. Turkey, Egypt and Mexico top the list of the top ten hottest holiday destinations in 2010 predicted by Thomson and First Choice.  Thomson and First Choice say they have ‘significantly’ increased capacity to Turkey as the country offers good value for money. 

5. Banks boom in Turkey without government aid. In Turkey, bank profits have risen more than 40% in the last year. At first glance that might not seem exceptional – after all, profits have surged at US banks too, spurring a stock market rally that has wiped clean most of the losses from last year's economic meltdown. But there's a difference: Turkey's banks posted those profit gains without any government assistance. Profits for the entire Turkish banking industry totalled $10.5 bn for the first nine months of last year, according to government data. At a time when the recession has hammered many European banks, Turkey's financial institutions have weathered the crisis remarkably well. The Turkish government restructured the financial system, boosting the banks' capital requirements and raising the mandated ratio of capital to risky assets to 12% from 8%. Another difference: Turkish banks had almost no exposure to subprime loans or derivatives. The result is that Turkish banks now have some of the world's strongest capital structures. Those capital reserves, and the absence of risky lending practices, helped shield them when the recession hit. For example, Garanti Bankasi, one of the country's largest lenders partially owned by General Electric, maintains a capital ratio of almost 18%, according to the bank's financial filings – far higher than most US banks. 
 
6. Moody’s Investors Service has just upgraded Turkey’s government bond rating to Ba2 from Ba3 last month, reflecting the rating agency’s growing confidence in the government’s financial shock-absorption capacity. Fitch moved late last year to put Turkey on BB+.  Although analysts think this should be increased further. read on… Timothy Ash, an analyst at Royal Bank of Scotland, said: “It’s a bit disappointing that Moody’s only moved one notch, as this still leaves Moody’s rating of Turkey one notch behind Egypt, which I have long failed to understand… answers on a postcard as to why Turkey should be rated behind Egypt. Obviously Moody’s was ‘inspired’ by the hugely successful eurobond issue earlier this week ($2bn placed, and $7bn in orders). Clearly, investors are voting with their feet, irrespective of the views of the ratings agencies.”

7. Rents are increasing. The world’s most expensive office markets got a little cheaper last year, but Istanbul, Turkey’s most populous city, was among the few cities in which office rent expenses surged. More than 130 cities worldwide experienced declines in rent expenses in the year ending 30th September, according to a report by the CB Richard Ellis Group. Istanbul ranked among the top five cities in which rents increased most, with 9%. Office rents in Aberdeen, Scotland rose 12.3%, while rents in Rio de Janeiro increased 12.1%.

8. Turkey Stock Market going well and on for record. Turkey’s stock index, lifted by a Fitch Ratings sovereign-debt upgrade, may test its record after support at 45,000 provided a ‘powerful springboard’ for a gain of as much as 27% by the end of 2010, according to Auerbach Grayson & Co.

As you can see, this country – and Istanbul particularly, are in a very good place, economically sound and growing, while many others are struggling. We’ve been watching the market for some time and we are delighted to have a new opportunity ready to launch very soon – to register your interest to be sent the investment pack 48 hours before general release – please reply to this email!

We now have less than 20 available apartments and these will be snapped up quickly…!  For a full information pack enter your full details here with the subject header 'Turkey' and we'll send you the full package direct.

Alternatively, check out the offer on our new facebook page or view it for yourself with our Audio and Slide on Youtube or follow it's progress on Twitter.

CLICK HERE & ENTER YOUR DETAILS FOR A FULL INFORMATION PACK