Olympus Lake, Finike, Turkey

Olympus Lake, Finike, Turkey 19% under market value From only €850 per m2 7th Sept 2007 + 44 (0) 1273 627 900 www.ready2invest.co.uk Executive Summary At the Olympus Lake development in Finike on Turkey’s south coast we have negotiated a deal that is verifiably under market value – by 19%. You could own one of these gorgeous apartments for just €68,340 (~£48,886). Here are some other highlights of the development: • 1½ hours from Antalya and 2½ hours from Dalaman international airports; regular direct flights from the UK • Finike has a development master plan that features 5-star hotels, beach clubs, bars, restaurants and park land – it’s a town with ambition • Turquoise Coast is famed for its sailing, gorgeous scenery, year round sunshine and extended rental season • Plenty of activities available nearby – from beach and water sports, to skiing in the nearby mountains, canyoning, white-water rafting and golf • Changing mortgage legislation will enable the Turkish population to buy more easily, creating a keen and active onward market Olympus Lake apartments are situated in Finike on Turkey’s Turquoise Coast, an area which is in the early stages of the development cycle. All indicators point to it becoming the next hotspot: • Property prices peaking in nearby resorts of Kemer, Kas and Kalkan • Improved road networks – upgraded coastal road cutting journey times • Developable land scarce owing to geography - mountains rise behind Finike and flat seafront land is at a premium. Since our project was announced, land prices have already risen. This development is something special. The first of its kind in the area, it is built around a huge, 5,000m² swimming lake, designed to give the development a feeling of space and coolness, with refreshing water not far from any apartment. With the sea a mere 180m away, it also boasts a private beach area as well as high-end amenities including restaurant, bar, spa, Turkish baths, gym, children’s play area, landscaped gardens and parking. Prices start from just €68,340 - that’s 19% under the independent valuation price. This deal really does provide great value for money in an emerging hotspot. With new transport infrastructure in place and mortgages becoming available next year, high capital growth can be expected. Due to the combined effect of the discount to market value and capital appreciation, you could see excellent returns on this development by completion of phase 1 in December 2009. Read on to find out more about the Olympus Lake Resort and, as ever, feel free to give us a call on 01273 627 900 to talk to one of our property consultants. Call! To talk to one of our property consultants, call us on +44 (0) 1273 627 900 website You can find all our deals, shows we are attending, educational material and more at www.ready2invest.co.uk email olympuslake@ready2invest.co.uk subsCribe Be sent deals as they happen, get free tickets to seminars and more by subscribing at www.ready2invest.co.uk New address Olivier House 18 Marine Parade Brighton BN2 1TL Warm regards Alise and Jonty Crossick 2 OLYMPUS LAKE < TURKEY Location of the Olympus Lake site – 5 minutes walk from the beach! OLYMPUS LAKE < TURKEY 3 + 44 (0) 1273 627 900 SWEDEN www.ready2invest.co.uk L AT V I A LITHUANIA NMARK Contents An emerging hotspot and with mortgages arriving soon. RUSSIA BELARUS KeY POiNts 5 . DEAL HIGHLIGHTS AND THE HOTSPOT OvERFLOW EFFECT WHY FINIKE Reasons to invest in Finike. • 19% verified discount to market value • From only €850 per m2 • Local mortgages available in 2008! • Spectacular 5,000m2 pool as a centerpiece • New road improving access and increasing interest L AT V I A LITHUANIA 6 MANY YACHTING POLAND 7 8 The Turquoise coast is a popular sailing area ABOUT THE DEvELOPER The Kent Group are an experienced and well-known developer specialising in luxury CZECH housing projects in Turkey. REPUBLIC ABOUT THE DEvELOPMENT FLOOR PLANS 1- and 2-bed apartments available. 10 12 IRELAND DENMARK WALES ENGLAND SWEDEN A unique beach holiday complex with a fantastic pool. Prices from €50,323. SLOVAK REPUBLIC TEIN ABOUT THE DEvELOPER AUSTRIA PRICE LIST RENTAL MARKET INvESTMENT SCENARIOS 16 NETHERLANDS 17 BELGIUM LUXEMBOURG 18 GERMANY POLAND • Entry deposit at 30% €20,502 (~£14,644) RUSSIA BELARUS RUSSIA SLOVENIA TURKEY’S ECONOMY POWERS ON CROATIA PRICE COMPARABLES HOW CAN I BE SURE OF THE PRICE I’M PAYING? verifying the discount 20 FRANCE LIECHTENSTEIN SWITZERLAND CZECH REPUBLIC 23 24 25 SLOVAK REPUBLIC AUSTRIA SLOVENIA • Completion December 09 ROMANIA GEORGIA CROATIA ANDORRA MONACO ITALY Y BULGARIA SPAIN PROFIT FORECAST Approximately 6% yield expected. 26 GREECE IzMIR ISTANBUL ANKARA TURKEY KONYA WHO WILL BUY MY APARTMENT? Investment scenarios 27 M O R O C C O TUNISIA SYRIA WHAT DO I NEED TO PAY? WHAT ELSE DO I NEED TO PAY? Additional costs 28 29 CRETE CYPRUS ISRAEL LEBANON A L G E R I A JORDAN WHAT ARE THE RISKS? CURRENCY TAx MORTGAGES LAWYERS THE READY2INvEST FEE The Ready2invest fee is £2,500. 30 31 32 34 35 36 37 38 39 40 BODRUM EGYPT SAUDI ARABIA ABOUT READY2INvEST THE NExT STEP RESERvATION FORM LEGAL DISCLAIMER ANTALYA FINIKE 4 OLYMPUS LAKE < TURKEY Deal highlights Flanked by Bodrum and Antalya where property prices have reached €1,200–€1,500 per m2, Olympus Lake at €850 per m2 enjoys the enviable position in an undiscovered and undeveloped location in an already established and proven area, Finike. As the southern Turkish coast continues to expand, opportunities like Finike will become harder to find. Further, our prices are directly 19% under the prices of an independent valuation conducted at Olympus Lake in February. This valuation verifies that our price at €850 per m2 is of excellent value. And as you only have to pay a 30% entry deposit, you could secure an apartment for just €20,502! The hotspot overflow effect When prices reach a certain level in a property hotspot, buyers feel they cannot afford to purchase there any more. They start looking for similar areas which are as yet undiscovered in order to obtain better deals. This “hotspot overflow” can be a continuous cycle and is a common occurrence in popular areas around the world. The trend is currently visible in southern Turkey, as developments begin to expand along the coast. The property markets in Bodrum and Antalya, both established tourist hotspots, reached plateaus a while ago. High average prices of €1,500 and €1,200 per m2 respectively have caused people to look elsewhere for cheaper options. For example the towns of Fethiye, Kas and Kemer have experienced rapid growth in property prices over the last few years. Sparked by the new and improved road access this …”hotspot overflow” effect is now reaching Finike, where we have secured prices from only €850 per m2 – that’s 31% under the independent valuation price and 19% below comparable properties in the area. Please see the separate valuation report and page 24 of the document for the comparables. Furthermore, mortgages will be available in Turkey in 2008. New legislation has been processed by the government and the law allows for long-term credits with 20, 30 and 40 year maturities to the local population. Finike already has a great reputation amongst the Turks as a holiday town. The availability of mortgages will contribute to the local market becoming more active, when the emerging Turkish middle class begin to seek and be able to afford second homes too. Finike area has many wealthy locals who will be interested in a development of the quality of Olympus Lake This will help drive demand and push prices up. OLYMPUS LAKE < TURKEY  + 44 (0) 1273 627 900 www.ready2invest.co.uk Why Finike? CHANGING MORTGAGE LEGISLATION The new mortgage legislation was approved by the Turkish parliament 15/02/07. This law will make mortgages available to the local population for the first time ever, and it is set to boost the local purchasing power. Both fixed and variable rate mortgages will thus become available to the local population in the beginning of 2008. on the list. The neighbouring town of Kemer was in a similar situation two years ago but it has experienced increasing demand for property and 25% capital growth over the last two years. the southern countries4 and other ports of the south coast, and has a capacity for 350 yachts5. Planning permission has been granted for a few 5-star hotels along the frontline to further the appeal of the town, but to retain the authenticity of the area, tight planning restrictions are in place. For example, new developments are limited to just 3 storeys to keep the density low. STEADY CAPITAL GROWTH Due to the relaxation of foreign property ownership laws earlier this year in Turkey, the country as a whole is predicted to become one of Europe’s strongest property markets in 2007. According to GROWING LOCAL MARKET Although Finike does not yet register on the international tourism radar, many wealthy Turks already own holiday and retirement homes there. Furthermore, when mortgages become more freely available to individual homebuyers in Turkey, the middle classes will also be able to afford second homes. As a growing local market ultimately assists in the onward sale of property, this is great news for property investors. The local market includes many wealthy fruit farmers who do not presently have high quality housing alternatives in the area. TURKEY’S UNDISCOvERED HOTSPOT Located between the international resort of Antalya to the east and the established tourist hotspot of Bodrum and Fethiye to the west, Finike has is still relatively underdeveloped. A new coastal highway that has recently been improved links Finike to Antalya and cuts the journey time to Finike down from 2.5 hours to just 1.5 hour. The area is attracting growing interest from property developers and investors alike, and Finike is next the London Stock Exchange, next year will provide some 12% capital appreciation3 across the country as a whole. In an emerging hotspot such as Finike this figure is likely to be considerably higher, 20% p.a. is feasible. IMPROvING INFRASTRUCTURE Finike is now very accessible via road, air and sea. There are frequent and cheap flights from London airports to Antalya and Dalaman. The marina in Finike is the main point of entry for sailors from 6 OLYMPUS LAKE < TURKEY o YACHTING coastline is well worth exploring, heading westward to Fethiye and eastward for Antalya and beyond. A day’s charter yacht cruise costs approximately €35 per person, but it’s always possible to negotiate on prices10. It is an excellent way to spend a day, on the turquoise sea investigating nearby beaches and coves, with some cruises offering picnics, fishing, diving and scuba diving excursions too. The town of Finike boasts a busy marina that is the next main port west of Antalya. Sailors from all over the Mediterranean can stop in and refuel, take a rest and make use of the facilities in the town8. The marina can accommodate 350 vessels9 and has excellent services for sailors and visitors. It is possible to take many various trips and the stunning LOCATION, LOCATION, LOCATION Near Mount Olympos of Antalya, surrounded by lush, green fruit orchards and fronted by the glistening Mediterranean Sea, is Finike – a small fishing town with much to recommend it. The sandy beaches stretch 22km along the coast to the east of Finike, towards Antalya, and to the west rugged cliffs and authentic nature dominate the landscape. Around the town there are also various cultural and historically valuable destinations like the sunken city of Kekova and the Lycian town of Limyra and Demre. Some of these residents have already indicated interest in this project. PLENTY TO DO Finike area is great for activities. The town is fronted by the glistening Mediterranean Sea and inland mountains rise impressively, including the legendary Mount Olympos with its eternal flame flickering – well worth a visit. The picturesque local marina provides great facilities for yachting, fishing and all types of water sports. Other sporting attractions include the golf clubs near Antalya6 and the option of skiing in the Saklikent ski resort7, which increases the appeal of the area in the winter. At certain times of the year, it is possible to ski in the morning and swim in the sea in the afternoon. For the more adventurous there is some of the best canyoning in Turkey in the area and it is possible to go white water rafting at Koprulu Canyon. LONG SEASON There are on average over 300 days of sunshine in the Finike region annually and the season is as long as that of Northern Cyprus. Temperatures rise up to the mid-thirties in the heart of the summer, and even in the winter it is very rarely cold. The area has the mildest winter climate, the highest seawater temperature and the longest summer season in all of Turkey, which is one reason that it is becoming a retirement haven. All this ensures a lengthened rental season, helping boost rental yields. 1. http://www.saklikent.com.tr/ 2. http://www.antalyagolfclub.com.tr/ and http://www.gototurkey.co.uk/index.php?su 3. http://www.londonstockexchange.com/en-gb/pricesnews/investnews/article.htm?A 4. http://www.blueflag.org/blueflag/2006/Turkey/Antalya/SeturFinikeMarina . http://www.worldwide-yacht-charter.com/mediterranean/yacht-charter-antalya.ph 6. http://www.gototurkey.co.uk/index.php?submen=13&menu_id=363 7. http://www.saklikent.com.tr/ 8. http://www.blueflag.org/blueflag/2006/Turkey/AntalyaSeturFinikeMarina 9. http://www.worldwide-yacht-charter.com/mediterranean/yacht-charter-antalya.ph 10. http://www.yachtbooker.com/yacht_charter_turkey/yacht_charter_Finike_EN.asp OLYMPUS LAKE < TURKEY 7 + 44 (0) 1273 627 900 www.ready2invest.co.uk About the development OLYMPUS LAKE Olympus Lake development is located just a 10 minute drive from Finike town centre along the seafront, part of a sweep of sandy beach that stretches 22km in either direction of the Finike area. Olympus Lake is a gated, secure complex, surrounded by eucalyptus and orange trees. The beach is exactly 180m away - a 2 minute stroll from the main gate. The development has a modern design and is intended to provide a peaceful holiday haven. Olympus Lake is built around a stunning water feature, a 5,000m2 man-made swimming lake after which the development is named. This beautifully landscaped lido is designed to give a sense of space, and is intended to provide residents with a cooling pool within a few steps of each apartment, refreshing in the hot summer months. The design is unusual – there is no similar development within the area and it will be a unique selling point and attraction to holiday makers and potential renters. The lake will have bridges spanning it and an islet in the centre which will have a restaurant on it, an excellent place to relax and enjoy views of the water. Indeed, 95% of the apartments have a view of water, either of the central lake or of the sea. In addition to the main pool, Olympus Lake Resort will also benefit from a children’s pool, fitness centre, Turkish bath, pub, café, sauna, children’s playground, landscaped gardens, tennis and basketball courts and car parking. There will be 255 units in total of varying sizes. We are offering thirty 1- and 2-bedroom units A good indication of how the apartments will look. at €850 per m2 in various sizes in the phase 1 of the development, completing in 2009. Please see page 17 for more details. 8 OLYMPUS LAKE < TURKEY Artist’s impression on the centre of the development. sea Phase 1 Phase 2 Location of the development in relation to the sea Olympus Lake development is only 180m from the sea. The developers are building a pedestrian subway under the coast road to an area of private beach, reserved for resident’s use. There will also be a café bar in this beach area. Our units in the first phase will complete in December 2009. OLYMPUS LAKE < TURKEY 9 + 44 (0) 1273 627 900 www.ready2invest.co.uk What about the interiors? OLYMPUS LAKE APARTMENT SPECIFICATIONS INTERIORS The developer is committed to fitting this project in a manner befitting a unique modern resort. Because this development is still pre-offplan at this stage, exact details are not available. These will be available within a few months. The kitchen and bathroom interiors have been chosen however and are shown in the pictures below. Colours may differ, but these give an excellent indication of the quality chosen by the developer. Artist’s impression of the interior Actual bathroom designs intended for Olympus Lake resort – colours may differ. What’s included? These apartments include the following as standard: 4 Stunning feature - 5,000 m swimming lake 4 Fully fitted kitchen 4 Gated community 4 Tv and internet connection 4 Marble and ceramic tiled floors 4 Water-saving irrigation system in gardens 2 4 Turkish bath 4 On-site sauna, spa, gym 4 Restaurant and bar on-site 4 Secure car-parking area 4 Tennis and basketball courts 4 Security entrance door 10 OLYMPUS LAKE < TURKEY FINIKE AvERAGE TEMPERATURE RANGE Jan ºC 6-15 Feb 7-15 Mar 8-18 Apr May 11-21 Jun Jul Aug Sep Oct Nov Dec 11-21 8-17 15-25 20-33 25-36 23-36 18-33 15-27 OLYMPUS LAKE < TURKEY 11 + 44 (0) 1273 627 900 www.ready2invest.co.uk Block A apartments Apartment type: A2 Apartment type: A1/A5 Apartment type: A3 12 OLYMPUS LAKE < TURKEY ‘A’ Block ground floor plans ‘A’ Block first floor plans Olympus Lake consists of 12 blocks providing 255 units in total. Ready2invest have secured 1- and 2-bedroom apartments at the price of just €850 per m2. Apartment type: A4 OLYMPUS LAKE < TURKEY 13 + 44 (0) 1273 627 900 www.ready2invest.co.uk Block B apartments Apartment type: B Apartment type:B Apartment type: B 14 OLYMPUS LAKE < TURKEY Ground floor type B apartments Phase 1 Phase 2 Siteplan OLYMPUS LAKE < TURKEY 1 + 44 (0) 1273 627 900 www.ready2invest.co.uk About the developer The developer at Olympus Lake is the Kent Group, an experienced and well-known developer usually focussing on luxury housing projects in Turkey. The company was founded by two civil engineers, Kursat Hacievliyagil (Master of Construction Engineering, University of Colorado, USA), and Ahmet Bedri Guler (Graduate of Civil Engineering, Istanbul Technical University, Turkey) in 1989. Prior to formation of the Kent Group, both partners have successfully completed sub-contracting for development of three 5-star hotels in Istanbul and two 5-star hotels in Bodrum. The current focus of Kent Group is several luxury housing and commercial projects in Istanbul and along the Turkish Mediterranean coast. In addition to the Olympus Lake Resort development in Finike, the company has developments in Fethiye/Gocek and zekeriyakouy. You can view some of the developers’ completed development work at www.yesilvadievleri.com and inspect their ongoing developments at www.bayviewhomesgocek.com and also at www.kentgroupjv.com/tr. 4 WHY SUCH A GREAT PRICE? One of the reasons we can bring you such great discounts in Turkey is that some developers prefer to work on a debt-free financial model. Midsize developers in Turkey are riskaverse and to avoid being prone to interest rate fluctuations, they tend not to borrow development finance from banks, preferring to make lower profits. In order, therefore, to maximise their building and land-buying activities in a booming market, they often choose to sell the initial 20–50% of the development at a large discount to investors. 16 OLYMPUS LAKE < TURKEY Availability block a1 a1 a1 a1 a1 a1 a1 a1 a1 a1 a1 a2 a2 a2 a2 a2 a2 a2 a2 a2 a2 a2 a2 a2 a2 a5 a5 a5 a5 a5 a5 a5 a5 a5 a5 a5 a5 a5 a5 a5 a5 b6 b6 b6 b7 b7 Floor G G 1 1 1 1 2 2 2 2 2 G G 1 1 2 2 2 2 2 2 2 2 2 2 G G 1 1 1 1 1 2 2 2 2 2 2 2 2 2 G 1 2 G 2 unit no. 4 10 11 12 13 20 22 23 24 27 29 1 10 11 20 21 22 23 24 25 26 27 28 29 30 1 10 11 14 15 16 20 21 22 23 24 26 27 28 29 30 1 6 11 3 13 bedrooms 2 1 2 1 1 2 2 2 3 3 2 1 1 2 2 2 2 dplx 3 dplx 4 dplx 2 dplx 2 dplx 4 dplx 3 dplx 2 dplx 2 dplx 1 1 2 2 1 1 2 2 dplx 2 dplx 3 dplx 4 dplx 2 dplx 5 dplx 3 dplx 2 dplx 2 dplx 2 2 2 1 3 dplx m2 132.2 95.7 110.5 80.4 86.6 110.5 156.8 146.5 203.3 203.3 156.8 95.73 95.73 110.55 110.55 110.55 156.78 146.52 203.35 139.5 139.5 203.35 146.52 156.78 110.55 95.73 95.73 110.55 132.27 83.25 83.25 110.55 110.55 156.78 146.52 203.35 139.5 203.35 146.52 156.78 110.55 121.02 123.9 123.9 93.4 151.68 Price € 112,370 € 81,345 € 93,925 € 68,340 € 73,610 € 93,925 € 133,280 € 124,525 € 172,805 € 172,805 € 133,280 € 81,371 € 81,371 € 93,968 € 93,968 € 93,968 € 133,263 € 124,542 € 172,848 € 118,575 € 118,575 € 172,848 € 124,542 € 133,263 € 93,968 € 81,371 € 81,371 € 93,968 € 112,430 € 70,763 € 70,763 € 93,968 € 93,968 € 133,263 € 124,542 € 172,848 € 118,575 € 172,848 € 124,542 € 133,263 € 93,968 € 102,867 € 105,315 € 105,315 € 79,390 € 128,928 OLYMPUS LAKE < TURKEY 17 + 44 (0) 1273 627 900 www.ready2invest.co.uk Rental market RENTAL COMPARABLES For a long time, the Turquoise Coast, where Finike is located, has been a popular getaway for the Turkish population, who are always keen to holiday by the Mediterranean Sea. Whilst relatively undiscovered by British tour operators, Finike is by no means untouched by tourism. Dutch budget airline and tour operator Corenden (a Dutch equivalent to Easyjet or Flythomascook) has been offering holiday packages to Finike for a number of years to Hotel Presa di Finica, close to Olympus Lake (see footnotes for examples). When the planned development of the seafront area is completed, we anticipate that demand will start to increase. Finike is also a popular stopping point for boating holidays and charter yacht cruises and those who have discovered it cherish its calm and laidback ambience and unspoilt nature. All of these factors add up to rising awareness of the resort which, taken in combination with the planned improvements and upgrades to the town and the hotspot overflow phenomenon, equate to future demand for accommodation in the area. To give some idea of the rental potential in Finike, we have taken the average rental comparables from neighbouring towns, including Kalkan, Fethiye, Ovacik and Kas. As these resorts are more developed and have higher profiles, to be prudent, we have halved the average rental from these areas to compensate for Finike not, at present, being as well established. We prefer to stay on the conservative side when calculating yield. As Finike becomes increasingly well known, current yields will increase. j FLIGHTS Several airlines fly directly from the UK to Antalya and Dalaman airports, the average flight time from London is around 4 hours. Flythomascook fly to Antalya International 3 times a week during the summer season and once a week during the winter.Their website, www.flythomascook. com offered return flights for May 2007 for £150 at the time of printing. Excel airways fly to Antalya International Airport from Gatwick airport weekly during the summer season (MayOctober). Check www.xl.com for up-to-date prices. Turkish Airlines www.thy.com/en-iNt also quote cheap prices on routes via Istanbul and can offer up to 3 daily flights. Examples of holiday iteneraries: http://www.exploreworldwide.com/worldwide/turkey.jsp http://www.yachtbooker.com/destinations/boating_holidays/boating_holidays_Turkish_Coast_EN.html http://www.exclusivetravelturkey.com/diving-paragliding-turkey.htm 18 OLYMPUS LAKE < TURKEY RENTAL OCCUPANCY With a long, hot summer and over 300 days of sunshine per year, the season on the Turquoise Coast is long. The high season lasts around 16 weeks over the summer where occupancy rates are very high - 80% has been achieved in the past. Furthermore, the weeks immediately before and after the high season will be likely to see an increase in demand as the market matures. Occupancy over the low season will be low until Finike becomes a more established resort. The next table represents the rental yield that could be expected for an apartment of €68,340 at the Olympus Lake Resort. FORECASTED RENTAL INCOME season High Low total weeks 16 36 weekly rate € 217 € 167 Occupancy 80% 10% Total total income € 2,771 € 599 € 3,371 Yield 4.1% 0.9% 4.9% For a 1-bed apartment costing €68,340, an annual rental yield of around 4.9% could be conservatively expected. It is worth noting that the above calculations have been carried out as if the apartments were let today. As the market develops over the next few years and rental demand rises, achievable rates could also increase. Further, these comparables have been calculated for 1-bedroom apartments. More spacious 2- and 3- bedroom apartments could be anticipated to enjoy proportionally higher yields, especially as the market develops. FORECASTED RENTAL INCOME Name Yaslik ev beyhan apartment seven Hills apartment bellamina apartment the Ottoman suite Flower Cottage the stables Ovacik residences ref. 59753 ref. 62097 location Kalkan Kalkan Fethiye Kalkan Kalkan Nr Fethiye Nr Fethiye Ovacik Kalkan Kas No. of beds 1 1 1 1 1 1 1 1 1 1 Average Adjusted average (-50%) High season (June - sept) € 600 € 289 € 400 € 460 € 600 € 533 € 325 € 254 € 508 € 363 € 433 € 217 low season (Oct - may) € 525 € 248 € 210 € 347 € 525 € 435 € 238 € 145 € 290 € 363 € 333 € 167 é CAR HIRE Finike is 138km (86 miles) from Antalya international airport and easily reached on a straightforward drive along a recently upgraded road. Journey time is around 1.5 hours, at a relaxed pace. various car hire companies operate at Antalya airport. Prices start from around €200 (£140) for one week’s hire of a family sized car. v BUSES There are regular buses from Antalya airport into Antalya city centre, and half hourly services from Antalya to Kemer, Finike and further along this stretch of coast. This means it is possible to holiday here without your own transport. 1. http://www.holidaylettings.co.uk/rentals/kalkan/6417 2. http://www.holidaylettings.co.uk/rentals/kalkan/8163 3. http://www.holidaylettings.co.uk/rentals/fethiye/13320 4. http://www.holidaylettings.co.uk/rentals/kalkan/1392 . http://www.holidaylettings.co.uk/rentals/kalkan/17062 6. http://www.holiday-rentals.co.uk/turkey/holiday-cottage-villa-mediterran 7. http://www.holiday-rentals.co.uk/turkey/holiday-cottage-mediterranean8. http://www.holiday-rentals.co.uk/turkey/holiday-apartment-mediterrane 9. http://www.holiday-rentals.co.uk/turkey/holiday-apartment-mediterrane 10. http://www.holiday-rentals.co.uk/turkey/holiday-cottage-mediterranean OLYMPUS LAKE < TURKEY 19 + 44 (0) 1273 627 900 www.ready2invest.co.uk Investment scenarios The next few pages highlight some possible investment strategies that could be adopted for an Olympus Lake investment. Each of the scenarios assumes that the Finike market will grow, at a fairly conservative level. Short of gazing into a crystal ball, there is of course no guarantee of growth, but it is prudent to forecast based on historical data, lack of supply and restricted land available for development. We include different, yet realistic, rates of growth in order to present a full spectrum of possible returns. 1. Buy and hold mid-term INvESTOR DESCRIPTION I’m an investor with a low to medium risk tolerance. I can afford to leave my money in a deal for a number of years. I want my property to increase in value and I also want some decent income. DETAILS Total Purchase Cost Investment Period (Years) Time to Completion (Years) RENTAL (from completion) Expected Annual Income Yield Total Expected Income Over 3 Years INVESTOR OUTLAY R2i Fee Advance 50% Additional Costs 1st Payment (30%- advance) 2nd Payment (30%) 3rd Payment (30%) 4th Payment (10%) 50% Additional Costs Ongoing Maintanance Over 3 Years Total Capital Outlay Over 5 Years PROFIT Purchase value Discount to Market value Estimated Market value € 68,340 19.25% € 84,632 € 3,750 € 1,500 € 1,616 € 19,002 € 20,502 € 20,502 € 6,834 € 1,616 € 2,340 € 77,661 € 3,371 4.9% € 10,113 € 68,340 5 2 CaPital GrOwtH Equity In Property After 5 Years Growth Additional Income (ie rental monies) total Capital back after 5 Years Return on Capital (Profit) Equivalent Annual Rate 20 OLYMPUS LAKE < TURKEY { Alternate profit forecast at different growth rates 10.0% € 136,300 € 10,113 € 146,413 89% 14% 15.0% € 170,224 € 10,113 € 180,337 132% 18% 20.0% € 210,590 € 10,113 € 220,703 184% 23% 2. Short term INvESTOR DESCRIPTION I am trying to grow my capital as opposed to generate an income and I prefer to get in and out of an investment quickly. I would rather maximise my profit over a short period, sell into a hot market and move on to the next deal. I may re-mortgage a UK property to finance this investment. details Total Purchase Cost Number of Units Investment Period (Years) Time to Completion (Years) reNtal (from completion) iNVestOr OutlaY R2i Fee Advance 50% Additional Costs 1st Payment (30%- advance) 2nd Payment (30%) 3rd Payment (30%) 4th Payment (10%) 50% Additional Costs Total Capital Outlay Over 2 Years PrOFit Purchase value Discount to Market value Estimated Market value € 68,340 19.25% € 84,632 € 3,750 € 1,500 € 1,616 € 19,002 € 20,502 € 20,502 € 6,834 € 1,616 € 75,321 € 68,340 1 2 2 N/A CaPital GrOwtH Sales value After 2 Years Growth Additional Income (ie rental monies) total Capital back after 2 Years Return on Capital (Profit) Equivalent Annual Rate { Alternate profit forecast at different growth rates 10.0% € 102,404 €0 € 102,404 36% 17% 15.0% € 111,925 €0 € 111,925 49% 22% 20.0% € 121,869 €0 € 121,869 62% 27% Through the valley with Mount Olympos on the right. OLYMPUS LAKE < TURKEY 21 + 44 (0) 1273 627 900 www.ready2invest.co.uk Looking from the orange groves over the surrounding farm lands. 22 OLYMPUS LAKE < TURKEY Turkey’s economy powers on “PriceWaterhouseCoopers regards Turkey as a faster-growing market than China, India and the rest of the so-called E7 countries.” There has been much press coverage in recent months about Turkey’s slow road to EU accession. Several issues have delayed their progress in negotiations, but the good news is that these hold-ups have not had a negative effect on Turkey’s economy or its housing market. A recent article in the International Herald Tribune economic (06/12/2006) future looks entitled bright”¹, “Turkey’s stated: been dramatic, especially the lowering of inflation, and the country is now more stable economically and politically than ever before. Turkey has been a member of United Nations since 1945 and a member of NATO since 1952. It has also been a secular state since 1923 where religion and the state are separate. Turkey has always had very close ties with the EU. In 1996, a Customs Union came into effect between Turkey and the EU, creating the closest economic and political relationship between the EU and any non-member country. In October 2005, Turkey met all of the Copenhagen Criteria, the political criteria which are the pre-requisites for starting the full EU Turkey is the 16 largest economy in the world th New property legislation was ratified in December 2001 permitting foreigners to own Turkish property. Now, 100% foreign ownership is permitted, as well as 100% repatriation of profits and dividends, creating a favourable climate for investing in Turkish residential property. UK interest in Turkish property has also risen as demonstrated by the number of Britons owning house in the country rose from an estimated 2,420 in 2003 to 9,298 in 2005.² 1. http://www.iht.com/articles/2006/12/06/reports/reu.php 2. Source Daily Telegraph “A Land of New Horizons”, 27/09/2006 “…regardless of the outcome, most analysts believe that theunderlying strength of the Turkish economy will help the country pull through, even though its pride may be battered a bit.” membership negotiations. These negotiations have had a positive effect on foreign investment, even with EU talks not going as quickly as hoped – the efforts made already have been enough to show their determination to improve the country’s economy and become a world player. This has already caused the property prices to increase. with an expected GDP of $382 billion, which put the Turkish economy ahead of Belgium, Switzerland and Sweden in 2006. Bear in mind that 45% of the Turkish economy is unrecorded too, meaning it is actually much larger than publicly stated. Turkey is also among the top 7 emerging markets, with one of the most open, dynamic and internationally integrated economies in the region. Indeed, research for PriceWaterhouseCoopers regards Turkey as a faster-growing market than China, India and the rest of the so-called E7 countries. As economic growth translates into increased spending power, there will be a strong upward pressure on property prices. The economic transformation in Turkey has The table below shows how property values have increased in Turkey compared to other popular investment locations: % PROPERTY PRICE RISE IN 2005 Spain Egypt Croatia Morocco Turkey 4.7% 6.1.% 7% 11% 20.9% Source: Turkish Daily News 26/01/06 OLYMPUS LAKE < TURKEY 23 + 44 (0) 1273 627 900 www.ready2invest.co.uk Price comparables reference REF 187612 n/a A245 A241 A235 REF 178358 location Kalkan Kalkan Kalkan Kalkan Kalkan Kas type Apartment Apartment Apartment Apartment Apartment villa beds 3+2 2+2 2+2 2+1 2+2 3+3 Price € 132,000 € 200,000 € 118,000 € 89,000 € 124,000 397,000 living area m2 125 164 90 75 84 170 Price per m2 € 1,056 € 1,220 € 1,311 € 1,187 € 1,476 € 2,335 average for Kalkan/Kas Mahmutlar Ref 341 D42 REF 1018896 REF 1014495 REF 1018906 Alanya Alanya Alanya Alanya Alanya Apartment Apartment Apartment Apartment Apartment 1 1 2 2 2 € 67,341 € 36,000 € 75,000 € 49,000 € 70,000 100 60 97 72 85 €1,431 € 673 € 600 € 773 € 680 € 823 € 710 € 119,000 € 115,000 € 109,000 € 140,000 € 94,250 70 85 80 92 90 € 1,700 € 1,353 € 1,363 € 1,522 € 1,047 average for alanya Av1834 REF2401 REF2385 Kem66 KE004 Kemer Kemer Kemer Kemer Kemer Apartment Apartment Apartment Apartment Apartment 2 2 2 2 2 average for Kemer Lale Golf Apartments PT977 PT978 Antalya 224 Antalya 224 Antalya Antalya Antalya Antalya Antalya Apartment Apartment Apartment Apartment Apartment 1 2 1 1 2 € 58,000 € 70,000 € 90,000 € 84,100 € 128,000 65 80 70 54 85 €1,397 € 892 € 875 € 1,286 € 1,557 € 1,505 average for antalya Atlas Apartments Green valley apartments Marine Homes Sea Shell apartments Sunset Beach Club Calis/Fethiye Fethiye Fethiye Calis/Fethiye Calis/Fethiye Apartment Apartment Apartment Apartment Apartment 1 2 2 1 1 € 75,980 € 85,550 € 141,810 € 95,064 € 93,670 45 92 82 44 44 €1,223 € 1,688 € 930 € 1,729 € 1,760 € 2,129 average for Fethiye PT2294 OAP 04 Gokay Apartments OAP 09 Pinara Apartments Ovacik Ovacik Ovacik Ovacik Ovacik Apartment Apartment Apartment Apartment Apartment 2 2 1 1 1 € 87,000 € 107,300 € 52,780 € 89,610 € 95,410 80 70 29 57 73 €1,647 € 1,088 € 1,533 € 1,820 € 1,572 € 1,307 average for Ovacik Combined average €1,464 € 1,316 24 OLYMPUS LAKE < TURKEY How can I be sure of the price I’m paying? The best way to confirm the value of an apartment at Finike is to independently valuate the development. The valuations are always carried out from an extremely conservative viewpoint and they provide a trustworthy estimate of the actual market value of your property. In the case of Olympus Lake Resort, an independent valuation was carried out by İsmail KİLİMCİ (valuation Expert Licensed by CMB) Onur KAYMAKBAYRAKTAR (valuation Expert). The valuation report, published 22nd February 2007, found the average price for the apartments at Olympus Lake to be €1,229 per m2. As our exclusive prices are just €850 per m2, they are considerably below the actual value – in fact there is a 19% verifiable discount! Please see the separate valuation report for more information regarding the discount. There is a 19% verifiable discount! To support the findings of the evaluation, we also conducted research into the local market to compare the prices. As previously mentioned, Finike is in the early stages of development, so there are no directly comparable or similar building developments in the immediate surrounding area. While this is a positive for the early investor (getting in at the beginning of the cycle means benefiting from preferential prices and enjoying the benefits of capital growth as the resort improves and grows), it means that finding comparables is made somewhat difficult. Calculating the discount Combined average price per m2 Combined average price per m2 (less 20% adjustment) Olympus Lake price per m2 Discount our prices at Olympus Lake are considerably under market vale. 1. http://emlak.milliyet.com.tr/Ilan.aspx?IlanNo=187612 2. http://www.antalyaestates.com/vk1info.htm 3. http://www.antalyaestates.com/a245.htm 4. http://www.antalyaestates.com/a241.htm 5. http://www.antalyaestates.com/a235.htm 6. http://emlak.milliyet.com.tr/Ilan.aspx?IlanNo=178358 7. http://www.propertiesalanya.com/en/property/341/alanya-mahmutlar--apartments.html 8. http://www.sunshineestates.net/main/property_detail.asp?property_id=19560¤cy_id=1&backlink=%2Fmain%2Fsearch%5Fresults%2Easp%3Fcurrency%5Fid%3D1%26country%5Fid%3D218%26region%5Fid%3D109%26age%5Fcreated%3D150%26Submit%3DSearch 9. http://www.sunshineestates.net/main/property_detail.asp?property_id=18896¤cy_id=1&backlink=%2Fmain%2Fsearch%5Fresults%2Easp%3Fcurrency%5Fid%3D1%26country%5Fid%3D218%26region%5Fid%3D109%26age%5Fcreated%3D150%26Submit%3DSearch 10. http://www.sunshineestates.net/main/property_detail.asp?property_id=14495¤cy_id=1&backlink=%2Fmain%2Fsearch%5Fresults%2Easp%3Fcurrency%5Fid%3D1%26country%5Fid%3D218%26region%5Fid%3D109%26age%5Fcreated%3D150%26Submit%3DSearch 11. http://www.sunshineestates.net/main/property_detail.asp?property_id=18906¤cy_id=1&backlink=%2Fmain%2Fsearch%5Fresults%2Easp%3Fcurrency%5Fid%3D1%26country%5Fid%3D218%26region%5Fid%3D109%26age%5Fcreated%3D150%26Submit%3DSearch 12. http://worldpropertyshop.com/search_property_details.php?p=978 13. http://www.euromedt-turkey.com/?bmFtzT1lbWxhayzmaWxlPWRldGFpbHMmzW1sYWtJRD0yMDU= 14. http://www.euromedt-turkey.com/?bmFtzT1lbWxhayzmaWxlPWRldGFpbHMmzW1sYWtJRD0xODQ= 15. http://www.secondhometurkey.com/index.php?lang=en&menu_id=1030&idx=42&tur_id=5&tip_id=25&bolge_id=24&ref=4 16. http://www.turkish-homes.com/rm/listings/l0854.shtml 17. http://www.alanyarealestates.com/propertyforsale/index.php?option=com_hotproperty&task=viewtype&id=1&sort=name&order=asc&Itemid=26&limit=10&limitstart=30 18. http://www.property-turkey.co.uk/Antalya-Property/Apartment/977.html 19. http://www.property-turkey.co.uk/Antalya-Property/Apartment/978.html 20. http://www.sunshineestates.net/main/property_detail.asp?property_id=18203¤cy_id=1&backlink=%2Fmain%2Fsearch%5Fresults%2Easp%3Fcurrency%5Fid%3D1%26country%5Fid%3D218%26region%5Fid%3D108%26age%5Fcreated%3D150%26Submit%3DSearch 21. http://www.sunshineestates.net/main/property_detail.asp?property_id=18203¤cy_id=1&backlink=%2Fmain%2Fsearch%5Fresults%2Easp%3Fcurrency%5Fid%3D1%26country%5Fid%3D218%26region%5Fid%3D108%26age%5Fcreated%3D150%26Submit%3DSearch 22. http://www.hanelshouses.com/includehh/Calis/Atlas-Apartments.html 23. http://www.homesandproperty.co.uk/agent.aspx?agentid=7623&opt=prop&pid=611642 24. http://www.hanelshouses.com/includehh/Fethiye/Marine-Homes.html 25. http://www.hanelshouses.com/includehh/Calis/Sunset-Beach-Club.html 26. http://www.hanelshouses.com/includehh/Calis/Sunset-Beach-Club.html 27. http://www.property-turkey.co.uk/Ovacik-Property/Apartment/2294.html 28. http://www.efesestate.com/78.htm 29. http://www.hanelshouses.com/includehh/Ovacik/Gokay-Apartments.html 30. http://www.efesestate.com/271.htm 31. http://www.hanelshouses.com/includehh/Ovacik/Pinara-Apartments.html Without direct comparables in the immediate area, we have instead widened the search to include a large section of the Turquoise Coast. We have included 5 towns along this coast, stretching from Alanya in the east, through Antalya, Kemer, the neighbouring town to Finike, Kas and Kalkan, Ovacik and Fethiye, west of Finike. This selection covers a range of different kinds of resort, at varying stages of development. Antalya is a highly developed resort, benefiting from proximity to an international airport and an established reputation, and Fethiye is an old favourite for locals and foreign tourists. Ovacik, next door to Fethiye, is an excellent example of a town that has benefited from the overflow effect from the neighbouring resort. Alanya, is more of a “cheap and cheerful” resort, with many high-rise buildings, popular with the local and international markets and Kemer most closely resembles Finike 4-5 years ago. The other comparables are from more developed resorts. The table below presents how average coastal prices compare against Olympus Lake. € 1,316 € 1,053 € 850 19% There is a 19% discount to the average market value of other coastal properties. This reaffirms that OLYMPUS LAKE < TURKEY 2 + 44 (0) 1273 627 900 www.ready2invest.co.uk Profit forecast Antalya, an hour’s drive from Finike, has long been a favourable, international investment location and the property prices have increased dramatically over the last decade. As property prices in Antalya became too expensive, the next town along the coast, Kemer, began to experience growth - approximately 25% in the past 2 years. Now the interest of the secondhomeowners and investors is gradually shifting to Finike, where prices are still low. With the improved transport infrastructure, this “hotspot overflow” effect is already visible in the planning processes of several 5-star hotels along the Finike beachfront and the development of unique resorts like Olympus Lake. Another major trigger for the growing interest from international investors towards Finike, and Turkey in general, is the new availability of mortgages. It enhances the purchasing power of the people, especially the middle classes, and they can afford the much sought-after second homes. Despite this high demand, restricted supply is needed for future capital growth to remain sustainable. And supply of development land is indeed restricted in Finike. The wealth of the town lies in the fruit orchards and the locals are hesitant to sell them - they have been kept within families for generations, they produce a great yield and income and farming is a way of life. The local municipality, although keen to encourage tourism, is also dedicated to preserving the area against overdevelopment and is sensible with the amount of land that is released for development, again restricting supply. The high demand set to send property prices in Finike skywards over the next few years and the restricted supply and good planning means that this growth rate is sustainable. The table below represents how growth in the market of variable rates combined with the independently verified discount to market value may affect the value of a 1-bed, 80.4m2 property at Olympus Lake over 5 years: Forecasted capital growth Capital growth 10% 20% 30% Purchase price € 68,340 € 68,340 € 68,340 estimated market price € 84,633 € 84,633 € 84,633 Property value increase Year 1 € 93,096 € 101,560 € 110,023 Year 2 € 102,406 € 121,872 € 143,030 Year 3 € 112,647 € 146,246 € 185,939 Year 4 € 123,911 € 175,495 € 241,720 Year  € 136,302 € 210,594 € 314,237 Forecasted growth excluding transaction costs and tax over  years, assuming variable rates of capital growth per annum and assuming a €68,340 purchase. If capital growth reaches a moderate 20% p.a, an Olympus Lake apartment costing €68,340 could be worth around €146,246 in just 3 years – that’s a pre-tax profit of over €84,633! 26 OLYMPUS LAKE < TURKEY Who will buy my apartment? We are often asked by investors about the market for their onward sale when they come to sell their property. In the Finike area we anticipate that there will be strong demand from the local Turkish population. With legislation to make mortgages readily available to the Turkish people, the growing middle classes will have access to funds to buy holiday and second homes. The area is popular among Turkish holiday makers and we have also had interest expressed by local residents, who currently have no alternative high standard of accommodation to buy in the area. We also anticipate that as Finike develops as a holiday destination and it becomes increasingly well-known, demand will increase from overseas buyers. Already, several foreign package holiday firms operate in the area, and it is often the case that a happy holiday can lead to a holiday home purchase. One-bedroom apartments in a high-end developments with excellent amenities will prove to be very popular. What does buying below market value mean? Buying below market value, capital growth, adding value and effective structuring are the four key ways to maximise returns on investment as a property investor. Due to the discount to market value available on the purchase of a 1-bedroom, 80.4m apartment at the Olympus 2 Effective structuring in Finike can be achieved through the combination of these two factors. As you are buying below market value, your profit includes the discount on your purchase and the capital growth on the market value of the property. For example, if you purchase a 1-bedroom, 80.4m 2 Another effective way of making your money work harder is through mortgaging. Mortgages in Turkey will be introduced to the local market for the first time in 2008. As the market matures, it is likely that foreign investors can also get financing. We anticipate that the financing option will be present at the completion stage of the Olympus Lake Resort. Therefore it should be possible for you to refinance your property and release the capital for other uses. The remaining equity will also be worked harder by the capital growth due to the leveraging effect of the mortgage. Lake Resort, you instantly lock in considerable equity – in fact the 19% verified discount to market value translates to €58,185. Capital growth, in turn, will play a key role in the future of Finike. It has been estimated that due to the relaxation of foreign property ownership laws in Turkey, the country will become one of the strongest-performing property markets in Europe in 2007 and therefore the future capital growth is also set to strengthen in Finike. apartment in Olympus Lake for €68,340 and its market value is €84,633, you accrue capital growth on the latter value. If the capital appreciation rate is 10%, which can conservatively be expected for a purchase in Finike and Turkey in general, after one year you could achieve a return on investment of €24,756, if bought with a discount. If purchased without a discount, at market value, your return, after enjoying the 10% capital growth, would only be €8,463. OLYMPUS LAKE < TURKEY 27 + 44 (0) 1273 627 900 www.ready2invest.co.uk Payment timetable timing Immediately Immediately 14 days after reservation 7 days after signing contract 6 months after reservation 12 months after reservation On completion * On completion * what for? Reservation fee Holding deposit 1st payment Additional costs 2nd payment 3rd payment 4th and final payment - handover of keys and title Additional costs amount £2,500 £1,000 30% of purchase price less £1,000 holding fee 50% of total additional costs 30% of purchase price 30% of purchase price 10% of purchase price 50% of total additional costs This payment schedule does not include currency transfer costs. All payments other than your initial reservation fee of £2,00 will need to be made in Euros. * Phase 1 complete in December 2009 28 OLYMPUS LAKE < TURKEY Additional costs As with any property purchase in the UK, there are some additional fees aside from the purchase price which have to be met. The same is true when you buy property in Turkey. The independent English-speaking lawyer we recommend will manage all of these payments as and when they are needed on behalf of investors. To ensure they have the necessary monies in place, you will need to provide 50% of these costs up front. The remaining 50% will be due on completion. The following table gives a few examples of what additional costs can be expected. A view of the land intended for development additional cost examples Property purchase price Stamp tax 1.5% Habitation licence Notary Title application fee Courier/translation 1-bed € 68,340 € 1,025 €683 € 219 € 100 € 90 Utilities: • Electricity • Water • Mandatory insurance total closing cost € 250 € 250 € 100 € 2,464 Legal vAT on legal fees 18% € 650 € 117 total additional costs € 3,231 Monthly maintenance € 65 OLYMPUS LAKE < TURKEY 29 + 44 (0) 1273 627 900 www.ready2invest.co.uk What are the risks? As with any investment there are there are some risks to be considered: WHAT HAPPENS IF I CAN’T RENT MY APARTMENT OUT? As with any rental property, the owner must be prepared for void periods and times when your property is slow to rent out. Each investor needs to weigh up whether they can afford these void periods and for how long, and have contingency plans in place. WHAT IF THERE’S NO CAPITAL GROWTH? Historically it has been shown that this is not likely to happen, but it may be that capital growth slows down and is not as great as anticipated. The discount on purchase will help to cushion the effects of this scenario and investors who hold the property mid-to-long term will still be able to make money when growth resumes. TERRORIST RISK Like many nations, Turkey suffers from militant attacks. In the past, such attacks have had a negative effect on tourist numbers but recent studies suggest that as the world becomes more used to terrorist threat, these attacks have less of a negative impact and the recovery time decreases. In fact a bomb exploded in Antalya only 3 years ago and no detrimental effect was felt in the property or tourist market as a result. ExIT RISK There is a possibility that investors looking to sell their property over time may not find a buyer. This is always a risk in any market, emerging or otherwise, and this can not be understated. Given this is to be one of the first high-end holiday apartment-style development in the town, we consider this risk is mitigated as the growing Turkish middle classes aspire to and are enabled by access to finance to buy holiday homes. 30 OLYMPUS LAKE < TURKEY Currency CURRENCY ExCHANGE Small differences in exchange rates make a big difference to the end amount you pay, and specialist companies compare extremely favourably to the high street banks. Ready2invest currently works with Moneycorp and Currency Solutions, currency conversion companies in London that offer an extremely personal service and excellent rates. Moneycorp offers a very straightforward, efficient and cost-effective service. Exchanging and transferring money is an easy three-step process: 1. Open a trading facility - you can register online by visiting the Moneycorp website at www.moneycorp.com or calling their London office on +44 (0)20 7589 3000 2. Book a transaction - once a trading facility has been set up, a dealer will call you and discuss your individual requirements with you. Rates are booked with your dealer over the telephone 3. Transfer your funds - dependent on the date you require your currency Our contact, Ben Nicholson, is always available to take your calls at their London office and can be reached on +44 (0)20 7823 7500 CURRENCY SOLUTIONS UK’s premier foreign exchange company for clients purchasing property overseas. Their upto-the-second trading facilities allow you to trade or fix the exchange rate on your purchase at the most opportune time, saving you money. • Best exchange rates. Rates are guaranteed to better any bank or financial institution saving you money. • First-class personal service. A dedicated personal dealer makes everything simple and hassle free. • No hidden costs. Every penny will be accounted for. There are no extra charges and the service is free. They say: “Exchange rates change constantly throughout the day, so the sooner you approach us, the more time we have to find and guarantee the best exchange rate available for your purchase timeframe. With a range of options to satisfy the most demanding of customers, rest assured your personal dealer will guide you hand-in-hand through all the trading options to match your requirements.” Nigel Hodges, our dedicated R2i dealer will be happy to answer any questions you have. The London office number is (0)207 740 0000 or check out www.currencysolutions.com. MONEYCORP Moneycorp, the UK’s leading foreign exchange company, can help you achieve the best exchange rates, making your money go further. They have been trading foreign currencies since 1979 and are the only foreign exchange company in the UK to have been certified to ISO 9000 Quality Assurance. In addition, you can take advantage of the following benefits: 4 4 Fast, efficient worldwide transfers. 4 A dedicated dealer to guide you throughout your No commission charges or receiving bank fees. currency transaction(s). 4 Extended office opening hours Monday - Friday 7:30am - 10:30pm and 10:00am - 4:00pm Saturday. OLYMPUS LAKE < TURKEY 31 + 44 (0) 1273 627 900 www.ready2invest.co.uk Tax “The additional costs associated with a property purchase such as legal fees, notary charges and property tax work out to be less than half of the Spanish equivalent at 5% of purchase price versus 10% of purchase price.” 1 Channel 4 As with all tax systems, the rules in Turkey are complex and you are strongly advised to seek professional advice from a tax specialist. However, here is a guide as to what you can expect.2 CAPITAL GAINS TAx Capital gains tax in Turkey, whether for an individual or a company, is treated as part of general income tax. Personal income tax varies from 15-40%. Basic corporate income tax levied on business profits is 20% in Turkey. Currently, if you hold on to a property for 4 or more years after the date of purchase, you are not required to pay income tax on capital gains at all. vALUE ADDED TAx (vAT) vAT (KDv in Turkish) fall within 2 price brackets. 1% is due on property less than 149m2, 18% due on property of 150m2 or over. PROPERTY TAx Property taxes are paid each year on the tax values of land and buildings at rates varying from 0.1% to 0.6%. In the case of the sale of property, a 1.5% levy is paid on the sales value by both the buyer and the seller. The rates are applied twice for property located in the Metropolitan Municipality areas. Buildings and land owned in Turkey are subject to real estate tax at the following rates: • • • Residences: 0.1% Other buildings: 0.2% Land: 0.1% DOUBLE TAxATION TREATIES Turkey has signed bilateral tax agreements with 60 countries, including the UK, which means you will not be required to pay income tax on capital gains twice. STAMP TAx Stamp duty applies to a wide range of documents, including contracts, notes payable, capital contributions and letters of guarantee. Stamp duty is levied as a percentage of the value of the document at rates ranging from 0.15% to 0.75%. Stamp tax is payable by the parties who sign a document. Each and every signed copy of the agreement is separately subject to stamp tax. UK TAx SPECIALIST If you would like to speak with a UK accountant in regards to your tax position, we use Charles Randall at Tayler Bradshaw and find him highly knowledgable. His number is 01799 525407. 1. Sarah vaughan, “Turkey has all the Trimmings”, available at www.channel4.com/4homes/buyingabroad/countryguides/guide_turkey_06.html 2. See All About Turkey at http://www.allaboutturkey.com/tax.htm. Primary source reports from Foreign Economic Relations Board (DEIK) and Price Waterhouse Coopers. 32 OLYMPUS LAKE < TURKEY Finike beach. OLYMPUS LAKE < TURKEY 33 + 44 (0) 1273 627 900 www.ready2invest.co.uk Mortgages Borrowing in Turkey has gone through a vast transformation. The new legislation, which was passed 15/02/07, means that potential homeowners in Turkey will be able to take longterm mortgages with maturities of 20, 30 and 40 years for the first time ever in the beginning of next year. In the past, Turkish people have had to rely on family investment or short-term, fixed-rate bank loans to help cover the costs of property. Only 3% of housing in Turkey is currently financed by credit. In fact, as of the end of last year, the ratio of home loans to national revenue was just 4.5%. Government figures predict that this is likely to reach 12% by 2015 due to the mortgage law . 1 The immaturity of the local mortgage market is visible in the fact that the cheapest loans have interest rates between 1.5 and 1.7% per month2. However, with the new legislation, both fixed and variable rate mortgages will become available, therefore boosting the local purchasing power. Interest rates are undoubtedly high but as the market matures and liquidity increases, they are likely to drop. 1. http://www.turkishdailynews.com.tr/article.php?enewsid=66812 2. http://www.ft.com/cms/s/64e8cf3e-c291-11db-9e1c-000bdf10621.html 34 OLYMPUS LAKE < TURKEY Lawyers Lawyers representing Ready2invest clients in any foreign country must be able to accomplish the following: 4 Act with power-of-attorney for the investor. 4 Guide through the conveyancing process until completion. 4 Provide a good level of service especially around busy times, such as completion, keeping the investor up to date with what stage they are at. 4 Provide an English speaking key contact who can respond to enquiries within 48 hours by email or phone. 4 Provide English translations of contracts and key documents. 4 Provide receipts for all disbursements or out-of-hand expenses. 4 Include within fees the cost of all notarisation, apostils, postage, tax registration and other legal paperwork that will need to be done in Turkey. When speaking to some of their UK client references (available on request), we had some outstanding feedback: “Documentation provided to us was perfect” “Thorough attention to detail” “Took time to explain queries” “Was impressed that she did not just do what We believe this represents tremendous value for money, as the services they offer are wide ranging and actually exceeds our criteria in many ways. If you’d like to contact Nursen Kose, please drop an email to her at nursen.kose@entaturk.com or call her on 00 90 212 292 89 00. 4 Arrange, monitor and liaise with independent project manager to ensure project is progressing satifactorily. ADDITIONAL COSTS In addition to these local Turkish legal costs, there will be a number of other closing costs including Stamp Tax, Habitation Licence, Gas/ Electricity/Water Connection and Insurance, again payable 50% upfront and 50% at completion. A full closing cost breakdown will be sent with your sales contract (see page 29 for a guide). To set up the Power of Attorney arrangement (saving you multiple trips to Turkey), there will be other legal costs to bear here in the UK such as having your power of attorney apostilled. This is estimated to be in the region of £150. With this in mind, we interviewed and spoke with over ten Turkish legal firms and chose local Istanbul firm ENTA A.S., headed by Nursen Kose, as by far the best firm to represent our investors. Nursen is an experienced lawyer who has dealt with many foreign property investors before and who speaks excellent English. we wanted, but rather argued back from a legal prospective and added significant value to the solidity of the deal” “Phenomenal in getting things done, and moving documentation...” “Proactively chased me to make sure all necessary steps were in place” We’ve negotiated an excellent deal for you with ENTA too. Their discounted fees for Ready2invest investors range from €650 - €850 (plus 18% vAT) depending on the size of your apartment purchase. This is payable 50% upfront and 50% at completion. OLYMPUS LAKE < TURKEY 3 + 44 (0) 1273 627 900 www.ready2invest.co.uk The Ready2invest fee The Ready2invest fee for an Olympus Lake property is £2,500 payable for every individual reservation made. This amount is due immediately as a nonrefundable reservation fee, should you choose to purchase a property through Ready2invest. There is also a £1,000 advance on purchase price payable to the developer, hence a total fee payable for one apartment of £3,500. If you are buying multiple apartments please speak to your property consultant for the exact fee payable. 4 WHAT OUR FEE COvERS: FiNdiNG tHe deal serViCe Our Investor Relations staff help you through your entire investing process. Their roles incorporate: 4 WHAT WE dON’t DO: 4 We don’t arrange mortgages 4 We don’t convert currency 4 We don’t manage finished property 4 We don’t advise on tax 4 Finding the deals through our network of international finders. 4 Personally visiting all developments for face-to-face meetings with key personnel and viewing the sites. 4 Answering any questions you may have during your investment process. 4 Negotiating the discount using R2i reputation and buying power. 4 Guiding you through the contract and payment process. 4 Financially structuring the deal for maximum returns. 4 Helping arrange a Power of Attorney. if necessary. 4 Completing extensive research and due diligence on: • title • Planning • legals • Country and town • the development • the developer 4 Help organise and liaise with 4 Arranging site visits (1 week’s notice needed). mortgage companies where necessary. 4 Help source and organise furniture packs where appropriate. 4 Help source local letting agents where appropriate. 4 Securing protection for your investment. 4 Update you on the progress of your investment. 4 Sourcing reputable local English-speaking lawyers in every country wherever possible. 4 Provide a friendly ear for any worries or queries you may have regarding your investment. 4 Negotiating favourable fee structure with lawyers. 36 OLYMPUS LAKE < TURKEY About Ready2invest Views from and of R2i development sites in Montenegro and Croatia When Jonty and Alise Crossick sold their retail business and moved into property in August 2003, they invested just £300,000. Twelve months later they were sitting on a property portfolio worth over £7 million with equity of over £3.5 million. In October 2003, Jonty and Alise set up Ready2invest Limited to share their property strategy with others and deliver a professional investment brokering solution in a fragmented market. The company has become well known for its thorough research and due diligence, and for negotiating and engineering exceptional deals in the marketplace. “We think like investors, we behave like investors and we personally invest in the developments we launch. Ready2invest grew out of a need to group together with other likeminded investors in order to create the buying power to get great deals.” Over the past two years, the Brighton-based company has built up a customer base of over 20,000 investors, and has achieved over €400 million of off-plan sales in many countries across Europe, each with its own administrative and legal procedures. “Our job is to build trust with the developer and trust with you. If you know that the properties we offer are well researched, superbly priced, judiciously selected and located in prime spots, then we believe you will buy through us. If the developer is confident that we can sell a lot of properties quickly and efficiently, thereby taking some of the pain out of his transaction process, we can negotiate unbeatable deals with him. The result? You, the investor, wins. The developer wins. And we win.” “I have been impressed by the high standard of Ready2invest’s customer service, and even higher quality of property development opportunities” John Maitland, Sutton Ready2invest customer OLYMPUS LAKE < TURKEY 37 + 44 (0) 1273 627 900 www.ready2invest.co.uk Next step To reserve an Olympus Lake apartment in Finike without delay, please complete and sign the Reservation Form and return it to us with a non-refundable reservation cheque for £2,500 plus a £1,000 advance on puchase price. Reservation cheques should be made payable to Ready2invest (Olympus Lake). Please send a separate cheque for £3,500 for every apartment you wish to reserve. If you are as excited as we are about investing in Turkey, then call us now on +44 (0)1273 627 900 and speak to one of our property consultants. d ite im t )L es inv Lake y2 s ead mpu ouse rade R ly H a (O ivier ine P l O Mar n 18 ighto L Br 2 1T BN 38 OLYMPUS LAKE < TURKEY R2I RESERvATION FORM vERSION R2I/TUR/OLY/3.1 24/1/08 OLYMPUS LAKE, FINIKE, TURKEY PLEASE COMPLETE IN BLOCK CAPITALS HOUSE NO. APARTMENT TYPE A/B PRICE € (Please see page 17 for the list) ! Please print your details clearly as they appear on your passport. Also, please send a copy of your passport. First iNdiVidual TITLE FIRST NAME SURNAME COMPANY NAME ADDRESS seCONd iNdiVidual TITLE FIRST NAME SURNAME COMPANY NAME ADDRESS POSTCODE EMAIL TEL MOBILE FAX PASSPORT NUMBER DATE OF BIRTH / / POSTCODE EMAIL TEL MOBILE FAX PASSPORT NUMBER DATE OF BIRTH / / COrPOrate PurCHaser COMPANY NAME: COMPANY NUMBER: REgISTRATION OFFICE: AUTHORISINg INDIVIDUAL: EMAIL: TEL: MOBILE: FAX: i/we confirm we have read and understood the risk section on page 30 and reserved this apartment with full understanding of the risks involved in purchasing overseas property. i/we confirm the details specified in this reservation Form and agree to terms and Conditions printed on the reverse. Authorised Individual Signature: Or First Individual Signature: Second Individual Signature: Where did you hear about us? DATE: DATE: DATE: Your completed reservation Form and non-refundable cheque for the reservation Fee and purchase price advance (£3,500 in respect of each apartment) made payable to ready2invest (Olympus lake) limited should be returned to ready2invest at Olivier House, 18 marine Parde, brighton, bN2 1tl. + 44 (0) 1273 627 900 www.ready2invest.co.uk Reservation Terms and Conditions 1. R2i is acting as the agent of the developer identified in the Olympus Lake Brochure. 2. The customer(s) identified in the 8. in producing the Olympus lake brochure r2i has used all reasonable skill and care to ensure that the information contained is accurate. the customer(s) acknowledges howeverthatthe information may be based on an assessment and/or interpretation by r2i or an officer or employee and the customer(s) should therefore make their own enquiries. 9. the customer(s) acknowledges that the value of property can increase of decrease, as can rental yields. No representation or guarantee is given by r2i that statements, views, projections or forecasts contained in the Olympus lake brochure are specific to any particular property. the information 4. The £2,500 of each Reservation contained in the Olympus lake brochure, or otherwise provided to the customer(s), merely represents a general picture of the 5. The customer(s) shall use all reasonable endeavours to complete contractual documentation for the purchase of the apartment(s) as soon as practicably possible following the issue of same by R2i to the customer(s). 6. The customer(s) acknowledge that the Reservation Fee(s) is non-refundable and that if the customer(s) do not proceed (for whatever reason) with the purchase of the apartment(s) specified in the Reservation Form that R2i will have no obligation to refund any part of the Reservation Fee(s). 11. subject always to 10 above: 7. The customer(s) understand that R2i is not a financial or taxation adviser, legal firm or mortgage broker and is not responsible for ascertaining tax or credit status or mortgage eligibility. 11.1 r2i’s total liability in contract, tort (including negligence or breach of statutory duty), misrepresentation or otherwise, arising in connection with the performanceor contemplated 17. Nothing contained in the Reservation Form or these Conditions shall effect the customer(s) statutory rights. performance of this reservation and sale of the applicable apartment(s) shall be limited to the sale price of the applicable apartment(s); and 16. R2i is a trading name of Ready2invest Limited (4923529) of registered office Oliver House, 18 Marine Parade, Brighton, BN2 1TL property market in the territory identified and customer(s) must determine for themselves what reliance they should place on such information. the customer(s) also acknowledges that tax and other legislation may change. 10. Nothing in these Conditions excludes or limits the liability of r2i for death or personal injury caused by r2i’s negligence or for any matter which it would be illegal for r2i to exclude or attempt to exclude its liability or for fraud or fraudulent misrepresentation. 15. This reservation shall be governed by and construed in accordance with English law and each party hereby irrevocably submits to the jurisdiction of the English Courts. 14. If any term of this reservation is found by any court, tribunal or administrative body of competent jurisdiction to be wholly or partly illegal, invalid, void, voidable, unenforceable or unreasonable it shall to the extent of such illegality, invalidity, voidness, voidability, unenforceability or unreasonableness be deemed severable and the remaining terms of this reservation and the remainder of such term shall continue in full force and effect. Fee being paid to R2i is a broking fee. 13. The customer(s) shall not assign, transfer, charge or deal in any other manner with the reservation or its rights under it or part of it. 12. No term of this reservation shall be enforceable under the Contracts (Rights of Third Parties) Act 1999 by a third party. Reservation Form overleaf acknowledge that there is a reservation fee of £2,500 plus a holding deposit of £1,000 for each plot in the Olympus Lake development (the “Reservation Fee”). 3. Subject to timely receipt of the customer(s) correctly completed Reservation Form and the applicable Reservation Fee(s), and subject to availability, R2i shall reserve the apartment(s) identified in the Reservation Form for the customer(s). 11.2 r2i shall not be liable to the customer(s) for any indirect or consequential loss or damage (whether for loss of profit, loss of business, loss or depletion of investment or goodwill or otherwise), costs, expenses or other claims for consequential compensation whatsoever (howsoever caused) which arise out of or in connection with this reservation and sale of the apllicable apartment(s). 40 OLYMPUS LAKE < TURKEY