Royal Tunbridge Wells, Kent -- (SBWIRE) -- 04/13/2010 -- In a market where people a wary of going out on a limb, Istanbul is starting to light up like a beacon. I know Istanbul through my monthly journey from North Cyprus to Bulgaria. I fly to Istanbul Ataturk airport and then spend up to 8 hours waiting for my 10 hour bus journey up into Bulgaria (food for another article).

Istanbul is a city that excites me, you only have to spend a small amount of time there to realise that this is one of the major hubs of the world. This city is located at the crossroads on so many journeys and is so steeped in history that no matter what 21st century development throws up; it’s always there just under the surface.

With an official population of 12 million and an unofficial count of nearer 15 million, this city teems with life. Yet it does not take long to see that this is a city in dire need of renovation and rejuvenation, and this is exactly what is happening. You only have to look at what has happened in London over the past 30 years to realise what is possible. And this is happening.

So would you invest in a property in Istanbul? What makes it a promising location for near to medium term growth? Many would say impending EU membership. I would say that no matter what happens in that sphere, Turkey is on the rise. From political influence, to pipelines, commerce and communication, it’s all happening here. With a population growing at a fast rate to fill the needs of industry, property is in short supply. Where there is a shortage of good rental property you naturally have a good market to purchase.

I went to view a new development called Tulip Turkuaz which is located in Bahcesehir/Ispartakule, 15 minutes from Ataturk Airport, 15 minutes from the ferries and the Bosphorus and 25 minutes from the financial districts of Levent and Maslak... There were several reason why I wanted to view this particular development, the first being its Bio-Climatic credentials. The design of this development is the work of Ken Yeang, well known for previous bio-climatic developments.

The second reason was the fact that there are some very serious partners in this project, not only Tulip Turkuaz who are a property investment company, but also Toki who are the Turkish building company and whose partnership guarantees security. Also involved are EMLAK KONUT who are a partner of Toki. Add to this Akbank who are the second largest bank in Turkey, The VAN HERK GROUP, a Dutch investment company and PANAGRO, the Dutch construction company who are actually building the project and there is no doubt about the developments credentials.

I was met on site by Gül Küsefoglu who is the Sales and Marketing Manager. She talked me through the project and over a model explained how the finished development would look and function.

The site itself will feature an array of water channels, the water supply will come from recycled grey water from the properties and 65% of the plot will be made up of green areas. On the roofs of the buildings there will be gardens, even the underground car parking spaces will have green open spaces to the sky.

The development will make use of solar panels to help reduce resident’s bills. Natural light channels wiill be incorporated throughout the buildings to make the maximum use of the light, and all 11 apartment buildings have been positioned so as to not block each neighbouring blocks natural light.

So how much will it cost:

Buying costs in Turkey are approximately 7% of the purchase price.

Main Property Purchasing Costs

1. Purchase tax: 3% on the ‘declared’ value of the property to be paid to the government. As house prices are set by the City Council for taxing purposes, their valuation is much lower than the actual purchase price This is a one off payment and it is due once the TAPU is received (step 6).

2. The solicitor's fee :( should you require one, but Property Sun Turkey strongly advises) Prices start from about £400.00 pounds and will vary depending on which solicitor you choose to use.

3. Agency commission: All Estate Agents in Turkey charge 3% commission to the buyer based on the Purchase price.

4. Notary charge: Approximately £100-150 notary charge for the power of attorney and the translation of your passport. This needs to be paid at step 4.

5. Map search: 2 maps are needed. The first is a map of where the property is located and is sent to the Izmir Aegean Army. This costs approx. £35. The second is a 1/5000 map used in the title deed process. This costs approx. £400 but price varies for different Municipality areas. (Step 5)

6. Title deed registration: £ 30 registration of title deed in your name. This is paid in step 6 and is paid only once.

The charges for purchasing can differ from region to region.

Additional fees

Utility Registrations Water and Electricity to be transferred into your name – approx. £150

Compulsory Government Building Insurance (DASK): his insurance has been compulsory since 2000 and costs approx. £35 a year depending on property size.

Home and Contents insurance: This is not mandatory and can be done once the property deeds have been registered in your name. Approximately £150 but costs vary depending on cover required and value of property.

Property tax an annual property tax is collected by the municipalities (i.e. local governments) at the rate of 0.3% for land and 0.1% for a house. This can be paid annually or in two payments, one in May and the next in November.

With a starting price for a 1-bed apartment at around £60,000 and the option of a mortgage this is certainly an interesting proposition for investors looking for a vehicle for their money.

So is Istanbul ripe for investment? I would say yes and may even put my money where my mouth is, as for Tulip Turkuaz, from what I can see, this is a development that is blossoming.

For more information about this development, contact info@ipb-magazine.com