Avoid Property Losses – Boost Your Portfolio With Turkey Property

Turkey Property I think it was Warren Buffett who once said, “When the tide goes out you can see who has been swimming without trunks.” In the UK at the moment there are a few investors who are probably feeling a bit over exposed when it comes to UK property. As it will soon be Christmas, it might be time to look at the gifts Turkey has to offer.

Before I start talking Turkey, let’s take a look at what is happening in the UK housing market. By all accounts not much if we look at the recent Rightmove House Price Survey.

My friend Phillip was over the moon this week this week. He told me that he had picked up this latest housing report and was feeling a bit more positive about his portfolio, now that UK property prices had “only fallen 2.6% in November.” Hardly cause to for an early bottle of champagne.

Rightmove analysts said this latest November slump will provide a “solid springboard for 2013.” If it does, then it will be a springboard without the ‘spring’.

Even so, my good friend Philip was excited because he is hoping that the UK is at a turning point. The problem for him and others is that when we look a little deeper, we are seeing a familiar story. The only city that has actually seen any property price growth in the UK is London, with most other UK regions seeing prices fall or rise only slightly above zero.

Contrast this with Turkey where we have seen property prices grow by 14% already this year, and average rental yields of 8% in Istanbul and these are two good reasons why property in Turkey should be on the menu.

It is true that UK landlords have been doing well with rising rental yields in recent years. They have on the whole benefitted from the tightening of the mortgage market and people taking a wait and see approach rather than buy property.

Unfortunately, any investor looking to expand their portfolio in the UK would still need to do so in London and prices are not cheap in one of the world’s most expensive cities.

Ask any investor and they will tell you that outside London, the UK property market just isn’t very exciting at the moment and is unlikely to be until well beyond 2013. It is more like a soggy roast dinner compared to what is on offer elsewhere.

For property investors who need to see some real growth in their portfolio, Turkey has a strong and growing economy to support this growth.

I haven’t started my Christmas shopping yet, but when I do, I will be looking mainly at the gifts that will pay back my investment several times over. The same goes for my property portfolio and, as I said to my friend, “When I look in around Europe at the moment, I really can’t see past Turkey for property that pays for itself.

 

What are your property investment tips for 2013? Please leave your comments below:

 

Kind Regards
Loxley McKenzie

Managing Director

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