Turkey - Overseas Retirement Letter

Transcription

Volume 2, Issue 4
February 2010
In This Issue
Diamond in the rough...
page 2
Photo by Eoin Bassett
Taking a chance, Kathleen
Peddicord looked beyond
the slums and found a
lucrative gem in Panama’s
Casco Viejo.
L
World markets in 2010 ...
page 4
From oil prices to housing to
health care, Paul Terhorst
discusses how the retiree
and overseas investor can
survive this new year.
Turkey –
Warm seas and white sand
in the land of legends
By Eoin Bassett
ost in the largest covered bazaar in
the world, I’m surprisingly relaxed.
Though it’s only to be expected after
a vigorous massage in the steam of a local
hamam—the bathhouse is a Turkish
speciality. Strolling among stacks of inlaid
woodwork and delicately painted
ceramics, this is a spectacle to relish.
In the market’s tiny workshops, craftsmen
are bent over precious metals, fashioning
jewelry just as their grandfathers once did.
Carpet sellers sip tea from flower-lipped
glasses. Down the hill, in the city’s biggest
spice market, the air is heavy with the
pungent aromas of heaped spices—the
flavors of two continents.
The briny smell of the sea pervades the
air—Istanbul is a maritime city—and, as
the Muslim call to prayer carries out
overhead on a cool sea breeze, a thrill runs
up my spine… In front of me is the fabled
Golden Horn—deepwater inlet of legend—
and, spanning it, Galata Bridge, its
parapet bristling with the fishing rods of
locals out to hook a light lunch.
At one of the restaurants tucked into the
base of the bridge, I stop to order a cold
beer and watch as dozens of commuter
ferries—many of them converted steam
ships from a bygone age—bounce back
and forth over the narrow stretch of water
dividing the modern neighborhoods of
Copyright © 2010 Live and Invest Overseas w www.overseasretirementletter.com
Top retirement havens ...
page 24
Great lifestyle properties—at
an affordable price—in five
of the world’s top retirement
havens in 2010.
Global News... Page 25
Caribbean flights from $79...
problems for expat property
owners in Spain...proposed
changes to Kuwait property
ownership laws...take your
medical records overseas
the easy way...how expats
are coping with recession
overseas
continued on page 6
1
The Overseas Retirement Letter w February 2010
Anatomy Of A Missed Opportunity
Dear Subscriber,
About 10 years ago, on a visit to
Panama, a friend extended an
irresistible invitation. “Let me show
you the best of Panama City,” he
teased.
My friend picked me up from my hotel
and drove us 10 minutes down avenida
Balboa, leaving the high-rises behind.
Bearing left, we passed a crumbling
arch and then came face-to-face with
what could only be described as
squalor. The barefoot and unwashed
local population meandered back and
forth across the road oblivious to
traffic. We progressed slowly,
carefully, and I couldn’t help but wonder
where in the world we were headed.
On and on, we rolled past block after
block of derelict buildings. Decrepit
but not abandoned. Au contraire.
These structures were over-occupied,
some by dozens of people, leaning in
doorways, hanging out windows,
resting on balcony railings, all with
seemingly nothing else to do.
Some places, the streets were inches
deep with litter. Windows were
broken, wood was rotting, concrete
collapsing.
I couldn’t wait to get out of the car
and have a closer look. We parked and
set out on foot, up one brick-paved
lane and down another. As we
wandered, we saw not rot nor ruin. We
were oblivious to the stray dogs and
the ripening garbage.
What held our attention was what lay
beyond and behind all this. Every turn
brought more and better architectural
delights. Here on this forgotten
peninsula, just outside downtown
Panama City, was one of the most
impressive collections of 18th- and
19th-century colonial structures I’d
ever seen. Three- and four-story
buildings with balconies at every
level, shuttered windows, hand-turned
columns,
archways,
interior
courtyards... Classic structures, the
caliber of which exists in only a
handful of places around the world, in
abundance. And every few blocks a
square, with a church, trees for shade,
sometimes a gazebo.
At that time, I learned, you could have
bought one of those classic French- or
Spanish-colonial buildings for as little
as US$50 a square meter—maybe
US$10,000 or US$20,000. Of course,
you then had all those tenants to
contend with, most paying no rent and
having nowhere else to go.
For me and Casco Viejo, it was love at
first sight. I wanted to buy on the spot.
But the complications surrounding the
purchase got the better of me, and I
moved on to other opportunities.
Four years later, when I was preparing
to open my first office in Panama, I
took another look at Panama City’s
old quarter. As charming and historic
as ever, but now, I was delighted to
find, many fewer squatters, much less
garbage, and, here and there, a fully
renovated structure. Prices? Those had
increased three- or four-fold and stood
From The Desk of Kathleen Peddicord
Copyright & Contacts
The Overseas Retirement Letter
January 2010
Volume 2, Issue 4
Publisher: Kathleen Peddicord
Managing Editor: Lynn Mulvihill
Graphic Designer: Irina Star
If you have queries relating to your
subscription, get in touch at:
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reach us at:
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© Copyright 2010 by Live and Invest
Overseas. All Rights Reserved. Protected
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international treaties. This newsletter may
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agreement and any reproduction, copying,
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including on the World Wide Web), in whole
or in part, is strictly prohibited without the
express written permission of the publisher,
Live and Invest Overseas, Ocean Business
Plaza, Suite 906, Marbella, Panama,
Republic of Panama.
Any investments recommended in this letter
should be made only after consulting with
your investment advisor and only after
reviewing the prospectus or financial
statements of the company.
at US$300 to US$400 per square
meter. We jumped…but on someone
else’s account.
That purchase progressed exactly
according to plan. We invested in a 300year-old French colonial gem, on the
corner of the region’s main square,
renovated the entire building, then sold,
less than three years later, for twice what
had been invested in the place.
Trouble was, we didn’t want to sell.
The more time we’d spent in Casco
2
Viejo, the more we’d grown to
appreciate her appeals. But, as I
explained, we’d bought for someone
else and had no choice but to execute
the planned exit strategy. Great
investment…home-run return…but,
alas, we were left without an address
in Casco Viejo.
Meantime, more unofficial residents
had been relocated, more trashcollection crews had been assigned,
and more of the old structures that for
so long had so captured my
imagination had been carefully and
lovingly rehabbed. And, yes, prices
had appreciated further. By this time,
about three years ago, when I got
serious about shopping for a place of
my own, prices in Casco Viejo had
risen another 200% to 300%. A
building that I could have snatched up
seven years earlier for US$20,000
now listed for US$300,000, even
US$400,000.
This for a ruin…a shell…in some
cases little more than a pile of stone
and brick with beams here and there to
remind you that, at one time, the place
boasted floors and interior walls. On
top of the, say, US$300,000 purchase
price, you could count on another, say,
US$900 per square meter in
renovation expense, meaning that, to
make one of these 400-square-meter
buildings right, you were talking
about a total cost of US$600,000 or
US$700,000, easy.
I’m as big a romantic as you’re ever
likely to meet. But even I, considering
particular properties for sale, had to
take a step back and remind myself
where I was. This was a barrio. Sure,
most of the squatters had been moved
out, and most of the garbage was now
being collected most days. Here and
there, some of the old structures
sported freshly painted facades,
freshly polished balcony railings, and
freshly planted pots of bougainvillea.
But, come on. Bottom line, this place
was just this side of a ghetto.
US$700,000 to own a home here?
Crazy, right?
Yes…only not as crazy as the prices
being asked today, another three years
on. Today, apartments in buildings
several streets back from the main
square are selling for US$3,000 a
square meter renovated…meaning that
a 150-square-meter unit can go for as
much as US$450,000. A 400-squaremeter building? If you can find one
for sale, you’re looking at a million
bucks already restored or US$500,000
to US$600,000 for a do-it-yourself
buy.
I’ve expanded my search well beyond
the current zone, explained to agents
and friends that I’m willing to be a
pioneer and to buy on the edge.
Still, the prices are shocking.
If only I’d bought 10 years ago…
If only I’d bought seven years ago (for
myself)…
If only I’d bought three years ago…
My search continues.
Kathleen Peddicord
Publisher
P.S. I share this tale of missed
opportunity with you this first issue of
the New Year as a reminder, both for
you and for me: Making the leap can
be scary, sure, and taking a risk is,
well, risky. But not making the leap
can come with a far greater downside.
Doing nothing now leaves you exactly
where you are today later.
From The Desk of Kathleen Peddicord
UMM/DMM Update
By Paul Terhorst
Last year (September 2009
issue), I told you about two new
real estate funds, UMM and DMM.
These matched funds attempt to
turn residential real estate into a
commodity. UMM bets that real
estate will go up, DMM that real
estate will go down. U for up, D for
down. I explained more about the
two funds, how they might be
used, and concluded as follows:
“I think it's premature to get into
UMM and DMM at this time.
Before investing, you’d want to
see how these funds trade, how
much they vary from underlying
asset values, and how prices
move in periods between release
of the index numbers. At least one
investor, David Van Knapp,
believes these funds are a joke.
He argues that UMM and DMM
amount to gambling and that fees
will erode much of the gains. Still,
I wanted you to know about this
new product... Some day UMM or
DMM might have a place in your
portfolio and mine.”
2010 Update: UMM and DMM
died late last year. Investors
shunned the funds, perhaps
because fees were too high, and
they fell below a $50 million
trigger. These funds never did
much, never traded much, and
now they're gone. I'll keep my
eyes open for other new ways to
invest in residential real estate.
But, for now, if you want to own
residential real estate, you'll just
have to buy a house.
3
Retirement Planning by Paul Terhost
What 2010 holds for the investor and retiree
The year 2009 finished on an upbeat. Will
2010 be able to sustain this trend?
Here, following, are my eight market
predictions for 2010—and how they
might impact you as an overseas
investor and retiree.
1
Markets up
2
Dollar up
I offer them with the usual caveats. As they
say, I may be wrong, but never in doubt.
I believe world stock markets will perform
reasonably well in 2010, a continuation of
current trends. I doubt we'll get back to the
2007 highs, or see the robust gains we had
in the second half of 2009. But I look
forward to an up year, with slow, gradual
improvement in equities and the economy.
Here I believe we'll see a change in
current trends. Since the market lows of
March 2009, the dollar and equities
have moved in opposite directions. That
is, on days when the market was up, the
dollar fell. When the market was down,
the dollar rose. Traders refer to “risk
appetite,” meaning that, on good days,
investors desire more risk. Money
flows both into equities and
riskier foreign currencies. On
bad days, investors seek
safe havens.
attractive to investors. Traders will see the
trend and pile on, riding the dollar up.
I remain concerned about the long-term
dollar outlook (see sidebar). But I think the
near-term trend will be up.
3
Oil prices flat, airfares flat
I believe the current prices of oil and-partly as a result--airfares will remain
largely unchanged in 2010. I'm concerned
about the long-term price of oil (see
sidebar). But, for now, I see oil production
and demand, and airfare supply and
demand, in equilibrium. As always we'll
see a summer travel spike, with higher
gasoline and airfares. But overall it should
be a tranquil year.
I'm less confident in my oil/ airfare
prediction than in many others. Oil prices
I think this inverse
correlation between the
dollar and equities will end
in 2010. At some point, the
dollar and equities will rise
and fall together. Reason:
the U.S. will come out of
this recession before Japan
and Europe and will raise
interest rates first. Higher
rates make the dollar more
bounce around. Airfares could shoot up if
masses of people start flying again,
regardless of the oil price.
4
India down, China up
For the past decade or so, India and China
have
enjoyed
rocketing
growth.
Economists tend to lump the two countries
together, as if they'll move ahead in
lockstep. I disagree. I think India's growth
is temporary, Chinese growth more
permanent.
I visited both India and China in 2009 and
will return to both in 2010. I saw both
urban and rural areas, touristy and less so.
In my view, the dictators in Beijing may
err, but they're moving to improve roads,
bridges, farms, mines, tourism, and so on.
If they had a chance to vote, which they
don't, the Chinese people would vote for
markets, growth, and prosperity. In other
words they'd vote for more of the same.
Indians, on the other hand--the world’s
largest
democracy--vote
communist. Or, what amounts to
the same thing: they vote the
Congress party. Instead of
supporting growth and
prosperity, Indians vote to
drain
the
very
few
productive sectors. The
way the Indians look at it,
the productive sectors
should pay for keeping
up the huge state sector.
The staggering weight of
the Indian bureaucracy
will eventually impede
India's growth. In my
view, "eventually" in
India's case will be 2010.
India has many more
problems than just a
4
deadweight, communist nightmare. For
example, growth has been limited to high
tech, mainly due to outsourcing from the
U.S. and other countries. So those who
speak English, have gone to college, and
work with computers do well, while the
masses of Indians sink in their poverty.
5
U.S. unemployment high
I'm frankly puzzled by the seeming panic
in the financial press about 10%
unemployment in the U.S. Unemployment
is a lag indicator, typically reaching a peak
six to nine months after the end of a
recession. The current recession ended
sometime in late 2009, so we can expect
unemployment to fall in the second half of
2010, in line with normal trends. Instead of
new government programs all we need is a
little patience.
6
Natural resources strong
I've said that oil prices will remain pretty
much where they are right now. But, with a
stronger dollar, that means oil and other
natural resources will increase in real
value. Here I think we're looking at both
near and long-term trends. Third-World
economies have entered a period of strong
growth, from Asia to Latin America. With
growth comes increased demand for more
stuff, more cars, refrigerators, tractors,
bricks, cement, furniture, motors, and
machinery. All that stuff requires more
steel, energy, copper, and other metals. As
a result, the natural resources used to make
stuff should enjoy strong prices for some
time to come.
7
Health care done
I think Congress will pass a health-care bill
in 2010, no matter how flawed. Most
provisions of the drafts I've read take effect
in three or more years, giving all of us a
chance to look over what's happened. I'll
be optimistic on this one and say that, as
soon as a bill gets passed, Congress will set
out to try to fix the mistakes.
Short-term gain?
8
Retirement Planning by Paul Terhost
Housing flat
I think U.S. house prices have farther to
fall as they regress to the mean. But rather
than falling even more in absolute terms,
housing prices will fall in relative terms.
To put it another way, I expect housing
prices to rise by less than inflation in the
years to come. We should see the
housing price weakness when the
current tax incentives expire.
How does all this relate to you, the
overseas retiree, over the coming year?
If you're into equities, stay there. If you're
not in, consider investing in growth stocks.
Consider moving to Europe, or at least
taking a vacation there, as France and Italy,
Spain and Germany should finally become
a bit cheaper in 2010. Consider buying
natural resource stocks, oil, copper, silver,
construction material, whatever. If you're
trying to sell a house in the U.S., try harder
in 2010. Eventually you'll get your price.
Above all, enjoy this new year of opportunity.
I may be wrong in my predictions for 2010, but at least I can make them. Going out longer term, though,
I run into problems. Long-term I'm deeply concerned about a weak dollar, sluggish growth, budget
deficits, trade deficits, and more. I see severe energy shortages, as world economies expand and demand
more oil.
I've reached only one conclusion for the long term. I believe most Americans have tired of capitalism,
self-reliance, and economic freedom. The French figured it out decades ago: the future belongs to
government. In my case, I can look at my own family. My siblings and I, all five of us, worked in the
private sector. Our children--that is, my nephews and nieces--work in government or quasi-government.
Politicians appear ahead of the curve on this one. President George W. Bush and a Republican Congress
directed massive, record-breaking increases in government spending. Now President Obama and a
Democratic Congress may out-do even the Bush years.
Government only pushes wealth around, never produces it. As government grows, Americans will see a
declining standard of living. Looking at the French experience, I predict the decline will occur very
gradually. Creep. And I believe most Americans will accept the slow decline as long as they feel safe in
their own, government world.
5
Turkey–Warm seas and white sand in the land of legends
continued from page 1
Beyoglu and Galata from the historic
center.
Turkish delights
Istanbul is a microcosm of modern
Turkey—and Turkey has it all. A vast
country, it stretches from the turquoise and
azure waters of the Aegean and
Mediterranean seas—where you’ll find
most expats—across towering pinecovered mountains onto the rolling plains
that mark the beginning of the great
Eurasian Steppe, and on over lush green
mountains to the Black Sea coast,
legendary home of the Amazons.
Often overlooked in favor of more
established Mediterranean destinations,
Turkey has a vast array of choice and
bundles of potential for anybody willing to
do some homework. Thankfully—given
the sheer size of the country—you can
narrow your search down to four unique
regions: the Aegean coast, Mediterranean
coast, Istanbul, and Cappadocia.
Many of the villages and port-towns of the
Aegean and Mediterranean coasts have
already become home to expats. Why?
Warm seas, sunshine, and an affordable
lifestyle aside, entire classical cities wait to
be discovered among magnificent pine
forests and olive groves—if you fancy a
break from the beach, that is.
Along thousands of miles of coastline, you
can find sleek resorts and modern medical
facilities, just yards from the monumental
remains of ancient Greece and Rome. It’s a
country where the modern and the
traditional are juxtaposed; at once
familiar and excitingly different—and
very affordable.
Though not the capital, Istanbul is the
country’s beating heart. Here the palace
of the Ottoman sultans rises above its
pleasure gardens; beneath it, the Aya
Sofia, grand statement of Byzantine
architecture, attracts tourists from all
over the world. For a thousand years the
largest enclosed space in the world, it is
choc-a-block with mottled marble
and marvellous mosaics.
Istanbul offers the best of any
European city—from lattes to the
latest Hollywood releases (in
English)—but with a superior
nightlife. You really can watch the
world go by beneath a skyline of
minarets and modern office blocks
as ships from all over the globe
trundle up and down the
Bosphorus—the narrow straits that
divide Europe from Asia.
Yummy baklava!
For something completely different, an
increasing number of expats are opting for
a new life in the lunar landscape of
Cappadocia, where the earliest Christians
once took shelter in mysterious
underground cities, and renovated cave
houses complete a fairytale landscape that
must be seen to be believed.
on offer even more tantalizing. With the
Turkish market expected to pick up in the
second half of 2010, now might be the time
to buy. Recent changes to Turkish property
law have made it easier than ever before
for foreigners to buy, and the country’s
official candidacy for EU membership has
made it an even more attractive prospect.
Property in Turkey—even in the most
desirable Mediterranean resorts—remains
affordable. It’s well below the price of
established retirement destinations. Sun,
sea, and sand in Spain? No problem if you
have US$225,000 for a two-bedroom
apartment in Malaga. Yet even in Turkey’s
most popular spots, property can be less
than half the price. Take a two-bed
apartment in Fethiye, center of the Turkish
Riviera. A short walk from one of the
country’s top beaches it’s going for
US$100,000. That’s the norm.
Turkish people have an old style of charm
and hospitality that’s hard to find in the
West. Older people are treated with great
respect and retirees often talk about how
welcomed they felt when they first arrived,
by neighbors who simply adopted them
into the community.
So let’s talk Turkey
How about something a little bigger? A
three-bed villa not far from the beach on
Italy’s Almalfi Coast, in southern Spain or
the French Riviera costs a whole lot more
than US$150,000. But that’s all you’ll pay
in the idyllic port of Ayvalik on Turkey’s
North Aegean Coast. If you get tired of
the beaches and life among the olive
groves, just hop on one of the daily
ferries to the Greek island of Lesbos and
climb Mount Olympus.
Despite a slowdown, Turkey hasn’t been
too badly affected by the economic gloom,
and falling house prices have made what’s
Food and energy prices have increased in
recent years but Turkey is still a very
affordable destination. You can eat out in a
sit-down restaurant for as little as US$3,
and a weekly grocery run for two people
can cost less than US$50 a week if you
make use of the excellent outdoor markets.
Before going any further, I must highlight
one important issue with Turkey. Like
many European countries, it’s best suited
as a part-year living option. For one, it’s a
drawn-out process toward residency. More
than that, though, you don’t want to live
here for more than six months of the year.
Do that and you’ll wind up paying tax to
the Turkish authorities on your worldwide
income. More about residency and tax
issues later. For now, I just wanted to be
upfront about the fact that, if Turkey
appeals, you’ll probably want to make
alternative living plans for the rest of the
year.
6
The tourist trap
Turkey was attracting tourists when the
Roman empire was still a twinkle in the
eyes of the gods. Two of the Seven
Wonders of the Ancient World lie on the
Turkish coast, and sites like Troy were
popular with visitors since Alexander the
Great paid his respects at the site on his
way to conquer Asia.
Add to that the sunny climate and friendly
people and it’s no surprise that Turkey
consistently features in the top 10
destinations in the world for tourists.
Despite the global downturn, the
country’s tourism sector is actually on the
increase. In 2002, there were 12.8 million
visitors to the country; by 2008 the figure
was 30 million.
This year-on-year increase has slowed
down a little, but organizations like the
World Travel and Tourism Council are
predicting a healthy future for Turkish
tourism and the government has
committed itself to putting the country in
the world’s top five tourist destinations by
doubling the number of tourists to 63
million a year by 2023.
Big infrastructural investments show they
have put their money where their mouth is,
too. Already, new marinas dot the coast,
world-class golf courses are beginning to
appear, and new airport terminals have
opened up parts of the country that once
took days to reach.
The dominance of package tours is on the
wane and there’s been a big increase in the
number of budget airlines flying two or
three hours to Turkey from western
Europe. Three major airports act as
gateways to the coastal regions, while, in
Oludeniz lagoon, near Fethiye
on Turkey’s Turquoise Coast.
Cappadocia, the two
airports at Nevsehir and
Kayseri have daily
connecting flights with
Ankara, Istanbul, and
the coastal city of Izmir.
Turkey is popular with
buy-to-let investors, and
competition—especially
in big resorts—can be
fierce. For this reason,
it’s important to be
The Aya Sofia and the Blue Mosque at night, Istanbul.
careful when choosing a
property to ensure you
get the most rentable one
rivals of the Egyptian pharaohs, they left
around. It might cost a little more, but in behind impressive sculptures, art, and
the long run, it’s more likely to pay. Be ancient citadels; they even get a mention
careful of rental guarantees, too. in the bible.
Unscrupulous agents or developers
sometimes try to add them on to the sale They were followed by a succession of
price. You don’t want to end up paying rent peoples who all left their mark. Probably
to yourself for your property.
the most famous of the Phrygians was
King Midas, whose touch turned
Land of civilizations
everything to gold. The mysterious
Urartians were famous for their metal
Life on the Eurasian landbridge has always work. The Lycian, Lydian, and Carian
been interesting. Any trip to Turkey takes civilizations blossomed on the coast, each
you in the footsteps of classical-age with a different architectural style still
philosophers, Christian saints, Sufi holy obvious among the ruins today.
men, Roman emperors, Ottoman sultans,
and the gods and goddesses of Greek Achaeans, Lelegians, Ionians, Aeolians,
legend.
Dorians, Minoans of Crete, and
The Greeks called the region “Asia Minor” Mycenaeans…all had walk on parts, but the
or “Anatolia.” For millenia, huge armies next starring role was for the Persians, who
and mass migrations of peoples have criss- incorporated the region into their empire
crossed the countryside, leaving behind around 547 B.C. A few hundred years later
them a truly awesome historical legacy.
and a certain Alexander of Macedonia took
it into his head to conquer Asia, which he
The site of one of the oldest cities on duly did, crossing into Turkey at the head of
earth—Çatalhöyük, dated to 7,500BC— his small, disciplined army at the historic
lies in central Turkey, but the first major Hellespont, near modern-day Çannakale.
civilization didn’t appear until about He fought his way down the coast, across
2000 B.C., when the militarily-minded the country, out of modern-day Turkey and
Hittites appeared on the scene. Great into the history books.
Beach near Cesme.
Spice market, also known as the
Egyptian Bazaar, Istanbul.
Grand Bazaar.
7
After his death, his new empire collapsed
and much of modern-day Turkey was
divided between two of his generals,
Lysimachus and Seleucus. During this
time the city of Pergamon rose to fame in
the Greek World, and its magnificent
mountain peak remains are a highpoint of
a visit to the Aegean coast.
Everything
comes to an
end though,
and on a
Monday in
1453, the
cannons of
Dolmas, a type of meze
(starter) made with young vine the Ottoman
T u r k s
leaves stuffed with rice and
other goodies.
sounded the
e m p i r e ’s
death knell. That’s why, to this day, in
Greek tradition, Mondays are unlucky.
The Ottoman Empire
The Celsius Library at Ephesus, near
Kusadasi.
A Roman province
It wasn’t long before the newly-emerging
Roman power took an interest and, despite
stiff resistance and several long-drawn out
wars, the new province of Anatolia
became an integral part of the empire.
Many of the antiquities and ruins that dot
the coasts are from this period, the
provincial capital of Ephesus being the
most remarkable—and the most visited
site in Turkey.
In 330 B.C. the Roman emperor
Constantine rebuilt an old Greek port on
the Bosphorus as a new capital, naming
the city after himself, Constantinople. The
capital of the eastern Roman Empire held
fast while the western part of the empire
collapsed into what became known as the
Dark Ages.
Successor to Rome, the Byzantine
Empire—centered
on
Anatolia—
flourished and tales of its fantastic wealth
circulated the known world. Flying into
Istanbul today, you can still see the great
walls that protected the art houses,
libraries, and treasures of Byzantium from
Arabs, Pechenegs, Russians, and other
invaders.
Under the Ottomans, originally nomadic
people from the eastern plains, the city—
now renamed Istanbul—was to become
the capital of a second vast empire lasting
600 years, which at its apogee spanned
three continents and, under its most
famous ruler, Suleiman the Magnificent,
reached the gates of Vienna in 1529.
A great Mediterranean power for
centuries, the appearance in the 18th
century of lavish sultans, too involved in
the intrigues of the harem to be effective,
marked the beginning of the empire’s slow
decline.
The First World War saw the final
crumbling of Ottoman power. You can still
see the trenches on the Gallipoli peninsula,
where thousands of allied soldiers piled
ashore at a defining moment in Turkish
history. The Turks repelled the invaders
under a commander called Mustapha
Kemal, later to become known simply as
Atatürk—“father of the Turks.”
Despite repelling the Allies, the defeat of
Germany meant the Ottoman Empire
collapsed to be followed by a vicious war
of independence in which Atatürk and
other Turkish nationalists defeated Greeks,
Armenians, and Russians to establish the
modern Turkish republic.
Modern-day Turkey
You won’t go far in Turkey without seeing
a picture of Atatürk, whose far-reaching
reforms transformed Turkey into a secular
state. Turks are fiercely proud of this
secular tradition and it’s an offence to
insult the father of the nation, so best not
to joke about it. The constitution protects
freedom of religion, but religious groups
can’t form political parties, or open faithbased schools. Headscarves are banned in
government buildings, schools, and
Ferry crossing the Golden Horn and
Galata bridge, Istanbul.
universities, something that has caused
controversy in Turkey, as well as France
and other European countries.
The country is an important U.S. ally in
the region, a major contributor to N.A.T.O.
and, despite being in a sometimes-volatile
region, remarkably politically stable.
The Turkish military is an important
institution in the country and sees itself as
the guardian of the constitution and
Turkey’s secular traditions. It has
intervened in politics in the past. However,
the only evidence of the military you are
likely to see are fenced-off zones on the
Aegean coast, a legacy from the conflict
with Greece.
Between 1915 and 1923, more than a
million and a half Armenians died in a
series of mass deportations and massacres
organized by the then ruling party of the
Ottoman Empire. To this day, the Turkish
authorities deny the events and it has
become the subject of diplomatic and legal
controversies. In Turkey, there have been
high-profile cases of academics and
writers, who admit the events occurred,
being
charged
with
“insulting
Turkishness” under the infamous Article
301.
8
Uchisar village and castle,
Cappadocia.
EU membership
The Armenian genocide is one aspect of
Turkish EU membership talks. Turkey first
applied for membership of the EU in 1987,
but negotiations didn’t start seriously until
2005. Although these accession talks have
slowed down, the reforms required for
Turkish membership have begun, and this
has made the country more attractive for
foreigners seeking property there.
Yachts in the Aegean.
Those in favor of Turkish membership
point to its position as a regional power
with a large economy and a significant role
in NATO. But while some planned reforms
have gone ahead, the European
Commission has declared them years late
and says they fall short of expectations.
For accession to go ahead as planned,
Turkish officials will have to work hard at
revitalizing the country’s stalling reforms
and meet their commitments over Cyprus.
With this in mind, full EU membership
may still be a decade away.
An overview of the market
Abandoned cave house, Cappadocia.
Despite progress, a number of outstanding
issues still lie unresolved on the road to
full membership of the Union, not least of
which is the thorny issue of Cyprus. Since
1974, the island has been divided between
the Turkish north and the Republic of
Cyprus—a fully signed-up EU member.
Turkey has reneged on pledges to open its
ports to Cypriot vessels and planes, saying
it will do so only after the EU starts
doing trade with the Turkish Cypriots.
For their part, the Greek Cypriots have
threatened to throw a spanner in the
works of the accession talks.
Not long ago there was no property market
in Turkey for foreign buyers. All that
changed as part of Turkish reforms
designed to ease entry into the European
Union. Property prices began rising
rapidly, particularly in around the
Turquoise Coast, where sleepy fishing
villages were transformed into sleek
resorts and prices doubled in the space of a
few years.
A temporary slowdown in 2005, while
legislation was amended, didn’t slow
things down and prices continued to rise.
Then came the crisis and there’s no
denying the Turkish property market was
shaken. But the country hasn’t been too
badly affected by the fallout and its
banking system has proved resistant to the
problems facing those in other countries.
This is good news for anyone thinking of
buying and it’s not too late to get in on the
act. House prices have been falling since
2008 and signs are they’re close to
bottoming out. Depending on the location,
it’s possible to find prices down 10% to
Foreigners buy property in Turkey under
the law of reciprocity. This simply means
that you can buy a property there if a
Turkish person can buy a property in your
home country. There are more than 80
countries covered on the list, including the
U.S., Canada, Ireland, England, most
European countries, Australia, and New
Zealand. This Turkish property law site
has a full list and plenty of other
useful information.
This law is currently being reviewed to
allow the market to expand even further
and include non-nationals from countries
that don’t follow the principle of
reciprocity. It’s not clear what effect this
will have on the market, but it’s fairly
likely it will increase demand with more
buyers on the market.
There are restrictions on foreigners buying
property in certain areas, like those deemed
Yacht exploring the
Turquoise Coast in
southwest Turkey.
20% compared to where they were two
years ago. Add to this positive reports of
economic recovery and predictions of a
real recovery in the real estate market and
it looks like now might be a good time to
look for that Turkish dream home.
Blue Mosque, Istanbul,
Istanbul ferries.
9
particularly around the North Aegean and
in the Taurus Mountains off the
Mediterranean Coast. Among the caves
and warren-like world of Cappadocia, the
rule is you own what’s underneath the land
you buy.
Yalis (Ottoman wooden houses) on the
waterfront, Bosphorus.
Bosphorus Waterfront.
strategic by the Turkish military, or
archeological sites. And, a foreign national
can’t own more than 30,000 square yards
of land without the approval of the
Turkish Council of Ministers. But,
unless you are planning to build
apartments or villas for rental or sale,
these rules shouldn’t bother you.
Plots of land for building can be
fantastically overpriced, but there are parts
of the coast worth investigation,
Weather and climate
A needle in a haystack
Before explaining more about what’s
on offer, the best places to target—and
also how to go about buying here—
some background…
Turkey has some of the most unspoiled
stretches of coastline in the entire
Mediterranean, and there are still sleepy
villages with a traditional way of life,
particularly in the North Aegean region,
which has seen the least development in
recent years. There is also scope on the
Mediterranean and Turquoise coasts for
those seeking an idyllic retreat, but rapid
development has seen small fishing
ports like Bodrum and Alanya
transformed into international resorts
with brand new marinas, millionaires’
yachts, and trendy bars.
The choice is vast, and the attractions
various; for example, in the Antalya
region, you can ski in the mountains in
spring, then drive the 30 miles to the
coast and jump into the warm waters of
the Mediterranean. On the Aegean
coast, hundreds of ferry routes turn the
The climate varies enormously depending on what part of the
country you’re in. The central plateau might be covered in
snow while heavy rain falls on the lush cloud forest of the
Black Sea coast. That kind of weather makes for an
interesting visit, but most expats prefer life on the sun-kissed
shores of the Mediterranean and Aegean coasts.
With more than 300 days of sunshine a year, the
Mediterranean coast is the warmest part of the country while
the Aegean coast has a similar climate, though slightly lower
temperatures. Where the two seas meet in southwest Turkey
is known as the Turkish Riviera, but most people call it the
“Turquoise Coast” for the colour of the sea there.
Uchisar Castle, Cappadocia.
Greek islands into your adventure
playground, and there are several routes
to southern Italy.
There’s also a big choice of properties.
Some great bargains exist among older
properties, and they are often cheaper than
new ones. It’s important to be careful when
looking at any property over 10 years old
though, as building regulations were not
always as tight as they are these days.
Apartments are very popular with foreign
investors and those looking to settle down.
They are cheaper than villas, and most
have good communal facilities. Villas
come in all shapes and sizes, from marbled
mansions worth every cent, to shabby
concrete boxes.
It all adds up to thousands of miles of coastline with mild,
rainy winters and hot, dry summers. Average summer
temperatures for Antalya, hub city of the Mediterranean coast
are above 84° F, dropping to 52° F in the winter. The Aegean
hovers around 80° F in the summer, and gets down to the high
40’s F in winter.
In Istanbul, summer temperatures average around 70° to
75°F; winters are usually between 5° F and 10° F with rain,
while Cappadocia has a steppe climate, meaning there can be
a big difference between day and night temperatures. The
average summer temperature is 73° F, while winter sees a
drop to an average of 28° F.
10
the nearby Alcati beach is famous as a
center for wind surfing. Ferries to the
Greek island of Chios and to the south of
Italy leave from here. Prices can be high
compared to other parts of the coast, but
you can still find good value. A twobedroom apartment in Alcati costs TL
172,810 (US$115,000). A four-bedroom
sea-view villa, with a swimming pool near
Ilica
beach
costs
TL
474,853
(US$316,000). It’s worth noting that there
is good potential for buy-to-let properties
around Çesme.
Since the 2006 changes to property law,
foreigners can’t buy more than 30,000
square yards of land. If you apply for and
receive planning permission, your architect
can draw up a schedule of works for the
builders, included all materials, and this is
part of your contract.
Note: In some resort areas, a ban on
building during the summer months means
things can take longer then you thought.
The Aegean coast
This is Turkey’s classical coast and it’s not
uncommon to stumble upon a Roman
theater, or a temple to Apollo while
walking in its pine forests. Hills swathed in
olive groves and fig trees rise up from the
coastal plain, and out of the stunning blue
Land of well-bred horses
Fairytale world of Cappadocia
Aegean waters loom mystical Greek
islands, scene of Homer’s epics.
In the northern part of this region,
Ayvalik is an attractive port town
surrounded by pine forests and beside
some of the country’s longest beaches.
It’s famous for its olives, grown in the
surrounding countryside. Daily ferries to
the Greek island of Lesbos leave from
here. A former market town of cobbled
streets and stone houses, it’s popular with
Turks, though there is a small and
growing community of expats.
Just built, a 1,141-square-foot, threebedroom villa, 300 yards from the beach
and with access to a communal pool, will
set you back TL 225,230 (US$150,000). If
you prefer something smaller and in town,
a one-bedroom duplex villa with sea views
is TL 178,683 (US$119,000). This is a
resale property with a beautiful garden and
tiled interior. Some of the old stone town
houses have been renovated, and there are
some good opportunities for renovation
projects. You can get your hands on a
house for around TL 60,000 (US$40,000).
Down the coast, Izmir is the third-largest
city in Turkey with 2.6 million people. An
hour away from Izmir International
Airport, the small resort of Çesme has long
been popular with Turks, but has only
recently come to the attention of foreign
buyers. The most attractive beach in the
area, Ilica, is three miles out of town and
A well-established and popular destination
for English vacationers, Kusadasi is a
large resort-town 45 minutes from Izmir
and not far the old capital of Roman Asia at
Ephesus, the most visited archeological
site in Turkey and home to one of the
wonders of the ancient world, the Temple
of Artemis. A large marina development
and a couple of new golf courses have just
been completed. Prices start from TL
82,640 (US$55,000) for a basic off-plan,
1,112-square-foot, two-bedroom apartment
in the center of town and go up to TL
195,422 (US$130,000) for a threebedroom villa.
Renovation projects in Turkey come in all
shapes and sizes, from the old wooden
yalis along the waterfront in Istanbul to
stone-built Greek houses in quiet market
towns like Ayvalik, or cave-houses in
Cappadocia. Buying old houses can be
difficult if they have multi-owners (see
“How to Buy Turkish Property”), and
you should check to make sure work on
the house is not subject to any
conservation restrictions.
Buying off-plan is popular and,
sometimes, the best way to secure a
bargain. But only go with a developer
with a proven track record; and even then,
make sure the contract has been checked
by a good solicitor.
Central Turkey by train.
Three miles out of town, in a complex with
a communal pool, a 1,184-square-foot,
two-bedroom apartment, 300 yards from
Ladies Beach costs TL 90,283
(US$60,000).
Huge
amounts
of
contstruction in recent years has led to
some ugly developments in parts. And,
though there is a large community of
11
With plenty of restaurants, water sports,
and a new marina, Altinkum—which
means “golden sand”--is home to a
thriving expat community with room for
more. The main attractions are the beaches
and the big international airport at
Bodrum is a 90-minute drive. There is a
lot of property on offer ranging from a
well-located two-bed apartment costing
around TL 105,303 (US$70,000) to a
four-bedroom villa in a well-serviced
beachfront complex for TL 406,118
(US$270,000). You’ll find cheaper
properties inland, but as an investment or
a home, they don’t make much sense
when you see what else is on offer. Ferry
routes to and from the Greek islands of
Kos are set to start with the opening of a
new marina.
In nearby Didim, the temple of Apollo
rivalled the oracle at Delphi in the Greek
world. It’s monumental architecture,
massive columns, and gorgon head
scultpures tower above the visitor. You can
find a fully-furnished apartment in the
town for sale at TL 99,286 (US$66,000).
Turquoise Coast
A thousand miles long, the Turquoise
Coast, also known as the Turkish Riviera,
is a mixture of white-sand beaches, islands,
and classical ruins, where the Taurus
mountains plunge down to the sea, on the
coast of southwest Turkey. It combines part
of the Aegean and the Mediterean seas, and
for many is the best of both. The region
was home to the Lycians, a proudly
independent people whose imposing cities
and famous rock tombs are dotted all
around. This is a yachter’s dream coast of
secluded coves, secret islands, and
underwater temples. Legend has it that
Mark Anthony gave this coast to Cleopatra
as a wedding gift… and when you see it,
you know he must have had it bad for Cleo
to give it away.
expats here and plenty of services, for
many, its charm has become too diluted.
But south of the town or further inland
there are some quieter spots that retain
some of the natural beauty of the area such
as Davatar, Long Beach, and in the village
of Sogucak.
Rugged Cappadocia
Bodrum peninsula is more interesting than
the town. Dominated by a massive castle, a
reminder of its time as a crusader base,
Bodrum town—the ancient Halicarnassus—
is now a large resort with a big airport and
good local services and modern health-care
facilities. Off-plan properties in the center
of town can be found for as little as TL
105,489 (US$70,000).
Small towns dot the peninsula. Formerly
the Bodrum area’s main fishing port,
Yalikavak is considered the best village
around. It has a bustling center, particularly
on market day, sandy beaches, good
restaurants and a few nice bars. A new twobedroom apartment with views of the port
and communal beachfront at Yalikavak can
be found for TL 233,000 (US$155,000).
Out in Tuzla near the airport you can find
apartments for TL 111,218 (US$74,000).
But apart from the golf course, facilities
are scarce. The fishing village of
Gumusluk has retained its original
character well and has a long beach. It is a
40-minute drive from Bodrum and a twobed apartment here costs around TL
150,432 (US$100,000).
Another of the larger resorts on the coast,
Marmaris is home to the largest marina in
Turkey and the ferry to the island of
Rhodes. It’s also become something of a
sprawl, with development stretching for
miles along the coast. The market is
dominated by resale apartments going for
anywhere
between
TL171,540
(US$114,000) for a two-bed to TL 405,000
(US$269,000) for a 2,400-square-foot,
three-bedroom villa. Legend has it the
nearby island of Sedir Adasi is made up of
sand brought from Egypt by Mark
Anthony, and scientific analysis of the
grains has proved it’s not from around
these parts.
A much more pleasant prospect, 46 miles
from Marmaris down the Datca peninsula,
is the small town of the same name where
prices are much lower, and the pace of life
slower. A semi-detached three-bedroom
villa costs TL 241,000 (US$160,000),
almost the same as a small apartment in
one of the bigger towns, and a 967-squarefoot, two-bedroom apartment with a sea
view costs just under TL 150, 561
(US$100,000). The quiet stretch of coast
features orchards, almond and fig trees.
Many of the small villages on the
peninsula are about a mile or so inland, a
planning development that goes back to the
days when pirates roamed the coast.
The airport at Dalaman acts as a gateway
to this part of the Turquoise Coast, and the
town, as well as the nearby villages of
Daylan and Sarigerme is home to a
burgeoning community of expats. Off-plan
apartments in Dalaman cost about TL
75,268 (US$50,000), and you can pick up
a 1,356-square-foot, three-bedroom villa
for TL 210,746 (US$140,000).
Planning restrictions at Daylan, 30 minutes
from Dalaman, mean that developments
are smaller. The seven-mile stretch of
sandy beach at Iztuzu is a famous breeding
ground for turtles and much of the area is a
wildlife sanctuary. Sarigerme is another
beachside town even closer to Dalaman. A
small two-bedroom apartment near the
beach costs as much as the three-bedroom
villa in Dalaman.
12
Built on the remains of ancient Telmessos,
which are all around the place, Fethiye is a
thriving market town of 60,000, spread
along the coast beneath pine-forested
mountains. The nearby beaches of Calis,
Kidrak and the lagoon beach of Oludeniz
are beautiful enough to have made it on to
Turkish travel brochures, and 12 small
islands speckle the turquoise bay. It’s close
to the Xanthos Valley, heartland of ancient
Lycia were there are dozens of ancient
cities to explore. In the town, a 1,292square-foot, three-bedroom detached villa
with a plot of 3,767 square feet costs TL
186,580 (US$124,000), while north of
Fethiye in Calis, with access to the beach,
you can pick up a three-bedroom villa for
the same price. The nearby villages of
Ovacik and Hisaronu have plenty to offer
in the region of TL 150,422 (US$100,000).
An equivalent, fully furnished threebedroom villa near postcard-perfect
Oludeniz beach will set you back a hefty
TL 495,000 (US$329,000). Buy in town
and take the 20-minute bus ride (see
“Getting Around”). In the abandoned
Greek village of KayaKoy (see
“Population exchange”), there are some
limited opportunities for renovation
projects. If you are interested in this, it’s
wise to thoroughly look into the title deeds.
Population exchange
In the hills near Fethiye on the
Turquoise Coast, the deserted village
of Kayakoy serves as a melancholy
reminder of the millions of lives
interrupted by war at the turn of the
20th century. In 1923, in the aftermath
of the Turkish War of Independence,
the Turkish and Greek governments
agreed to a formal population exchange
based on religion. Over a million
Greeks were forced to leave Turkey
and hundreds of thousands of Turks
and Greek Muslims were forced to
abandon their homes in Greece. Many
of those expelled from both countries
had never seen their new homeland and
virtually none would ever see their
homes again. Turkey’s Greek heritage
can be found throughout the country in
the distinctive architecture of market
towns, fishing villages, and in
crumbling Byzantine churches. Nestled
among pine-clad hills, Kayakoy is now
an outdoor museum, testament to how
much relations between Greece and
Turkey have improved in recent years.
Just over 50 miles down the coast from
Fethiye, the dramatically situated cliffside village of Kalkan is home to about
4,000 people, more than a quarter of
whom are expats. There is a good
selection of cafés and restaurants, and
properties are still affordable. For TL
Surrounded by mountains, the village of
Gocek, a half an hour from Dalaman has
become second home to the Turkish elite,
celebrities, and politicans. And property
prices have risen accordingly. That’s
alright though, unless you’re passionate
about yachting--for which the place is an
important center. Otherwise, there’s not
much to it, not even a beach.
Fethiye Bay—a beautiful stretch of turquoise waters and sandy beaches, beneath pine-forested hills
210,650 (US$140,000), you can find a
fully-furnished, two-bedroom apartment
with great views of the sea and mountains.
Yet another town to spring out of the ruins
of one of the regions classical age cities,
the small picturesque port of Kas is
sprinkled with tombs and other
archeological remains. It’s a laid-back
place, popular for scuba diving and water
sports. Prices here are in line with Kalkan.
Aya Sofia, for a thousand years the largest
enclosed space in the world, the masterpiece of
Byzantine architecture and Istanbul’s most
famous landmark along with the Blue Mosque.
The Mediterranean Coast
The construction boom has transformed this
once sleepy stretch of coastline. The sun lasts
longer here than on the Aegean Coast, and the
area is beginning to emerge as a golfing
destination with world class courses—
something Turkey has been traditionally
lacking in.
Between Kas and Antalya lies Kemer, which
until the 1960s, could only be reached by
boat. The area’s natural beauty has attracted
many foreign buyers since then and, as a
consequence, prices are not as low as other
parts of the coast. In Western Kemer, you can
find two-bedroom apartments for around TL
165,734 (US$110,000). A one-bedroom
seafront apartment in the heart of Kemer town
costs TL 105,467 (US$70,000); while in
Camyuva, three miles south of the center,
famous for its orange groves, a 1,292-squarefoot, two-bedroom apartment, 15 minutes’
walk from the beach costs TL 137,000
(US$91,000).
13
Abour an hour’s drive from Kemer,
Antalya is the region’s hub city, home to
700,000 people. Its international airport,
good medical facilities, and attractive old
town make it a popular spot with
vacationers and expats alike, A relative
baby in comparison to other cities in
Turkey, it’s only 2,000 years old. Inside its
Roman walls is a beautifully-restored
Ottoman townscape, with timber-framed
houses and winding cobbled-streets. The
days of bargain renovation jobs in the old
town are gone, but you can find plenty of
apartments for under TL 105,467
(US$70,000) throughout the city.
About 20 miles east of Antalya, Belek is
synonymous with golf in Turkey, home to
eight world-class courses. Prices are still
increasing here. There is a lot on offer, and
the ball starts rolling with off-plan two-bed
apartments close to the town center going
for TL 143,111 (US$95,000).
With amazing beaches, impressive ruins,
and a lively restaurant and bar scene, Side
is the city where Mark Anthony and
Cleopatra’s romance blossomed. Planning
restrictions on apartment height mean it’s
kept its character. Depending on location
and the communal facilities, a twobedroom apartment in the town can cost
anything from TL 143,111 (US$60,000) to
TL 181,000 (US$120,000). If you need
something bigger, a three-bedroom
bungalow will set you back around TL
301,582 (US$200,000).
The main attraction of Alanya is its
wonderful beaches and lively nightlife. It
has around 10,000 permanent foreign
residents and a big supply of properties for
sale. The typical offerings are apartments,
and there are not many houses or villas on
the market (those that are for sale, are too
expensive). A new sea-view apartment
with two bedrooms just outside the city
center costs TL 181,000 (US$120,000). In
Cikcili in the hills east of the town, a
1,378-square-foot, two-bedroom apartment
sells for TL 211,274 (US$140,000).
Digging a hole?
If Turkey is still an emerging property
market, then Cappadocia is barely on the
map. You couldn’t get more different from
the coast, or more unique anywhere in the
world. People have been living in this part
of central Turkey for over 10,000 years,
but most of the evidence is underground
where whole cities have been discovered
10 levels down into the earth.
The soft stone the region is comprised of
was formed millions of years ago by the
hardening of volcanic ash. The result is a
landscape of mushroom and fairy cone
formations, many of which have cave
houses carved into them. Horses are still
used through the province and it is from
them that Cappadocia—“land of well-bred
horses” in Hittite—gets its name.
Cappadocia is a different prospect from the
coast. For one thing, it’s about four hours
drive to Antalya. There are airports in the
region, at Nevsehir and Kayseri, but they
have few international flights, serving
mainly as hubs connecting to the coastal
cities, Ankara and Istanbul.
Many of Cappadocia’s cave houses are
now uninhabited, or serve as hostels and
hotels. Horse riding, hiking, and hot-air
ballooning are all popular activities in the
region. After the landscape itself, the real
draw is the thousands of cave churches and
ecclesiastical complexes, many elaborately
painted with Byzantine frescos.
Most expats are centered on a 40-squaremile area around the neighboring villages
of Goreme and Uchisar, where many have
opened businesses to cater for the steady
influx of gawping tourists. There are also
small but well-established communities in
the villages of Ortahisar, Cavusin, and
Ibrahimpasa, where there is a laid-back,
Bohemian atmosphere.
The astounding village of Uchisar is based
around a spectacular rock-cut castle,
sprouting from the ground like a termite
mound. The village is slightly quieter and
more up-market than Goreme, the area’s
real tourist center. A restored cave home in
the astounding village of Uchisar, with one
bedroom and several other rooms is TL
241,388 (US$160,000). Prices are lower in
the surrounding villages of Ortahisar,
Cavusin and Ibrahimpasa, and it’s possible
to find something similar for TL
181,000 (US$120,000).
There are properties for sale in the larger
towns of Urgup and Avanos not far from
the villages. Urgup has good facilities and
restaurants, and a pleasant rustic charm,
and Avanos is home to thermal springs that
are well worth a visit.
While the coast is home to many Britons
and North Europeans, Cappadocia is more
popular with Americans, Australians,
French, and Italians. Kayseri, with a
population of nearly one million, 90
minutes away by car, is the nearest big city
with a good range of facilities, but you can
find a medical clinic in Nevsehir, only 14
miles away from the villages.
Due to the area’s heritage, planning laws
are tight and there are plenty of
bureaucratic loops to jump through before
a renovation project can start. Many of the
The undergr ound cities of Cappadocia
The volcanic eruption that covered Cappadocia 30 million years ago left layer upon
layer of ash, forming a soft stone called tuft. Since the time of the Hittites—about
2000 B.C.—people have been carving settlements below ground in this soft stone.
These cities were greatly enlarged by the earliest Christians fleeing the persecution
of Rome. It’s believed the largest city—Derinkuyu—could accommodate 30,000
people. Forty of these cities have been uncovered to date, but only six are open to the
public. They contained churches, kitchens, and schools, living areas for families,
even stables for livestock.
14
regions cave houses have been unoccupied
for some time and require a lot of work.
Prices can vary greatly depending on
whom you’re talking to, as many of them
belong to locals.
If you’re interested in a property here, you
have to be prepared to explore the area, as
many deals are done through word of
mouth and a good agent is essential. We
recommend www.buycappadocia.com for
more details.
Istanbul – Manhattan of the East
This year’s European Capital of Culture,
Istanbul is the city where two continents
come to the traveler. The Bosphorus—the
narrow straits linking the Black Sea to the
Sea of Marmara, are less than a mile wide
at points and the city straddles the shores of
both Europe and Asia. It is the only city to
have been a capital to both Christian and
Muslim empires—and it shows. Inside the
great Roman walls that protected the city
for so long is a heady mix of architectural
styles, from the Byzantine to the Baroque.
Old wooden houses characteristic of the
Ottoman era stand in the shadow of the
Hagia Sofia, for a thousand years the
largest cathedral in the world.
Property prices have slowed down in
Istanbul and, right now, a 969-square-foot
two-bedroom apartment in the Cihangir
area of the city is TL 218,614
Curr ency
The Turkish Lira (TL) is subdivided into 100 kurus. From 2005
until the end of 2008, Turkey's
currency was called the New
Turkish Lira (Yeni Türk Lirasi, YTL
or TRY). As of January 1, 2009, the
“new” (yeni) has been dropped and
the currency is the Turkish Lira.
Old, pre-2005 Turkish Lira notes
and coins have been withdrawn
from circulation. TL1 new is equal
to an old, pre-2005 TL1,000,000.
Don’t accept old, pre-2005 liras.
(US$145,000). This area is located
between Taksim and Beyoglu, in the
absolute center of modern Istanbul, yet
only a short walk away from the old city. In
Fatih, an old neighborhood at the end of
the Golden Horn, a beautifully-restored
1,507-square-foot, two-story house costs
TL 180,000 (US$120,000). Out of the city,
but close to the Bosphorus, you can buy a
2,045-square-foot, three-bedroom villa
with a private swimming pool on 4,000
square feet of land for TL 271,203
(US180,000). A renovation project in the
touristy heart of Sultanahmet, where most
of the old city’s attractions are
concentrated, varies depending on the
amount of work involved. An old wooden
Ottoman house with three floors in need to
a moderate amount of work will cost you
around TL 301,000 (US$200,000). For
more
information
check
www.turkishpropertypeople.co.uk.
How to buy real estate in Turkey
Buying property in Turkey is pretty
straightforward but there can be delays due
to the need for a military clearance. At the
moment, foreigners buying property in
Turkey must undergo a background check
by the military authorities. A new law is set
to remove this requirement soon, but
in the meantime, it’s a bureacratic
hassle that must be gone through.
Unless you have been mixed up in
serious trouble you shouldn’t have any
problem (a few skeletons in your
closet won’t do any harm).
It’s forbidden for foreigners to buy
property in a designated military or
strategic zone, of which there are a few
along the coast. This is a hangover from
the conflict with Greece, only 10 miles
away in places.
A 10% or 15% deposit is usually put down
to secure the property during the time it
takes to get clearance. After clearance from
the military, you need to go to the land
registry office (tapu dairesi) with the
current title deed holder or their legal
representative. A new title deed is issued in
your name, with the consent of the current
Lost cities of the Lycians
title deed holder. You should make sure an
interpreter is present, so that you know
what’s happening. You will be given a
copy of the deed then, but the money may
have already changed hands.
The buying process can also be completed
at a notary public. In which case, the deeds
will be changed in the land registry office
at a later date. A notary is a neutral public
official who oversees the signing of the
final deed, transferring the property into
your name.
Whichever way you complete the deal,
there is a registration fee ranging from
TL 200 (US$130) to TL 300 (US$200).
The notary will never see the preliminary
contract: they only participate at the
closing of the sale but will usually check
that the land is owned by the seller or that
the planning permission is in place.
You should carry out a due diligence to
ensure that the seller owns the property
and that there are no outstanding
mortgages or taxes. A good solicitor can
do all search and checks for you. You can
double-check whether the solicitor you
are using is an authorized solicitor with
the Union of Turkish Bar Associations.
Try before you buy
Many expats opt for long-term rentals
before committing to a property. It’s a
straightforward process and there are lots
of options. Leases are for either six or 12
15
months with a two- or three-month
advance payable up front.
Rents can be as low as TL 300 (US$200),
or as high as TL 3,014 ($US2,000) per
month depending on the property. A 1,076square-foot, two-bedroom apartment in
Seyrantepe, Istanbul, 10 minutes from the
city on the metro, costs TL 800 (US$531)
per month. A fully-furnished, one-bedroom
flat in the heart of Beyoglu costs TL 1,300
(US$863) per month. In Fethiye, heart of
the Turquoise Coast, depending on its
location, a two-bedroom apartment costs
between TL 350 (US$232) and TL 670
(US$445).
Many of the best deals for rental properties
can be found on expat online forums like
www.turkishliving.com or www.turkeycentral.com.
Another
place
to
look
is
www.ownerdirect.com. A very popular
Turkish website for real estate listings,
both for rent and for sale, is
hurriyetemlak.com. Another website
widely
used
by
Turks
is
www.sahibinden.com where you can view
millions of classifieds from all over the
country. Unlike hurriyetemlak (with an
English option), it is only in Turkish.
There are thousands of estate agents who
specialize in holiday rentals, and asking
prices are often over the odds. Some agents
take a commission of a month’s rent for
having “found” the apartment for you. But
if you take your time and focus on the areas
you are interested in you should find
something you like for the price you want
to pay.
Inheritance law
If you’re planning on buying property in
Turkey, you need to be aware of Turkish
inheritance law. Should you shuffle off this
mortal coil without having made a will,
your spouse only gets 50% of the house,
and then, only if they are jointly named.
The first statutory heirs are any children of
the deceased, who receive the other half of
the property. If there are no children, then
the parents of the deceased and the siblings
of the deceased would receive the estate. If
the parents are dead, then the grandparents
and their offspring are the statutory heirs.
To avoid things going against your wishes,
draw up a will and be sure it is recognized
under the Turkish Civil Code.
Ear thquakes
Sitting astride two continents has its
downside and Turkey has been hit by
several severe earthquakes in the last
50 years. The last one struck the
eastern region of Bingöl in 2003, and
the 1999 Izmit earthquake killed
thousands of people hitting 7.6
magnitude. The country is on a
tectonic fault line called the North
Anatolian Fault (NAF), running as
close as 15 miles from Istanbul.
Improvements
in
building
regulations and enforcement mean
the country is better prepared, but it’s
worth being wary of older properties.
Check them out structurally to ensure
they are up to standard. There is a
compulsory annual earthquake
insurance of around US$50.
Your tax burden
When buying a property in Turkey, you’ll
pay a transfer tax of around 3% the
declared value of the property at the time
of the purchase. The cost of this tax is often
shared between you and the seller, but you
can arrange this anyway you like—just
make sure it’s explicitly stated in the
contract. Property tax (emlak vergisi) is
paid annually in two installments, in May
and November. It is calculated based on the
declared value of a home, usually between
0.1 and 0.3% that value.
At the time of purchasing your property,
make sure that the value registered is equal
to the price you paid. Avoiding taxes by
under-declaring is common in Turkey, but
it could end up costing you more than your
initial saving, as the government has begun
cracking down on this practice.
There is also an annual environmental tax
of about TL 211 (US$140).
As regards income tax, the more you earn,
the higher your applicable tax rate.
Individual tax rates in 2009 varied from
15% to 35%. If you are resident in Turkey
for over six months of a calendar year, then
you answer to the name of a “permanent
resident” for tax purposes, and the tax will
be calculated on your income earned in
Turkey and overseas. For this reason, we
recommend Turkey for part-year living, i.e.
spend less than six months a year in the
country and you won’t pay tax to the local
revenue authority.
Turkish law exempts the following forms
of income from tax:
w
w
Profits from private pension funds, up
to a limit.
For individuals, income from the sale
of shares.
w
w
For individuals, dividend income up to
TL 20,000 for the year 2009.
For individuals, income from the sale
of immovable property held for five
years or more.
Visas and red tape
Anyone wishing to stay in Turkey for
longer than three months has to apply for
residency. If you just want to visit and get
a feel for the country, you can get a threemonth tourist visa, which, for citizens from
some countries, including the U.S.,
Canada, and Britain, can be obtained easily
at point of entry for TL 30 (US$20).
Apart from the bureaucratic hoops to be
jumped through, getting a long-term
residence permit isn’t too difficult. These
permits are obtained after you have arrived
in Turkey. Just to complicate matters, visas
for work, study, and research are only
available through Turkish embassies and
consulates outside of Turkey and must be
obtained before you arrive. So, if you
intend to work, you have to apply for a
work visa before going to Turkey, and if
you want to stay, apply for a residence
permit when you get there.
16
Most expats move to Turkey on a threemonth tourism visa and immediately apply
for the residence permit. Applications for
residence should be made to the
Alien’s Branch of local police
departments (called the Emniyet
Mudurlugu Yabancilar Subesi).
Pergamon, ancient city of the Lydians,
and their legendary King Croesus.
.
The application process takes anything
from three to eight weeks, depending on
the region. If you don’t own a property or
work in Turkey already you can get a
tourist-residence permit, a kind of
combination, which is valid for six to 12
months. It costs about US$230 for six
months. You just have to prove you have
savings of at least US$1,800.
If you own a property in Turkey or work
there, or have been living in the country for
more than five years, you can apply for a
full residence permit, valid for up to five
years. This costs about US$320 for one
year or US$1,100 for five years and it can
be renewed. Remember, though, as a fulltime resident, you will be liable for tax on
your worldwide income. So this won’t
apply to most retirees.
Fishing boats on the Bosphorus.
A lot of expats living along the coast and in
Istanbul simply leave the country for a day
or two by traveling to the Greek Islands or
flying back to Europe for the weekend.
They then arrive back in Turkey and get
another three-month tourist visa. However,
it’s best to consider this a loop-hole rather
than a solution, as the rules about
foreigners living and working in Turkey
change frequently due to the EU candidacy
process.
Your residency visa is only valid until the
date your passport expires, so make sure
you have enough time left on your passport
to make the application worthwhile. Also,
if you want to import furniture for your
new Turkish home you need a residency
visa to avoid paying import duty.
This won’t apply to most retirees but, for
the record, foreigners who want to work in
Turkey have to get permission from the
Ministry of Labour and Social Security.
Before applying, you need to have a
residency visa, so if you arrive in the
country on a tourist visa, you won’t be able
to look for work until you have got a
residency visa of at least six months. Your
prospective employer in Turkey has to
apply within three days of your
application, so make sure to synchronize.
If you’ve lived in Turkey for eight years
and worked there for six, you are entitled to work
there for as long as you want. There’s quite a
bit of paper work involved in the
aplication, see www.mymerhaba.com
for more.
There is a big demand for Englishlanguage teachers in Turkey, and it’s worth
looking into if you are interested in
working there. Two good sites to start you
off
are
www.tessall.com
and
www.eslcafe.com.
For more information on visas, see the U.S.
embassy in Turkey’s website. Another
useful website is that of the Turkish
embassy in the U.S.
Ruins in the woods.
The cost of living
Turkey is not as cheap or affordable as it
once was, but it’s still cheaper than other
Mediterranean destinations and offers
good value for money. The cost of living
varies enormously depending on where
you are and the lifestyle you choose. The
big cities and resorts have much higher
prices than smaller towns and more remote
parts of the country.
There are plenty of modern supermarkets
and convenience stores, but by avoiding
them and making time to shop around the
local markets you can make big savings,
and you can drastically curtail your
costs by avoiding expensive imported
goods, too.
Turkey produces massive amounts of fruit
and vegetables and prices are low, while
the quality is exceptional. Turkey is also a
big producer of household goods and
electrical appliances, so these can be
cheap. Along the west coast, there are
many outlet stores for various international
clothing brands with factories in Turkey.
A typical weekly shopping bill for two
people in Istanbul is between TL 120
(US$80) and TL150 (US$100), and in
Cappadocia, around TL 75 (US$50) and
TL90 (US$60). And, remember, shopping
in the local markets and steering clear of
expensive imported items can significantly
reduce your bill. For your reference, I’ve
compiled a comprehensive shopping list
here.
17
Ephesus, Turkey’s most visited site
Turkey has some of the highest gasoline
prices in the world and a gallon costs
around TL 15 (US$10).
A haircut for men in a traditional Turkish
barber would set you back around TL 4.50
(US$3), and a ladies salon would charge
around TL25 (US$17). Gym membership
costs anywhere between TL 30 (US$20)
and TL 90 (US$60) per month depending
on the quality of the facilities, but there are
well-maintained public sports grounds
with exercise equipment in many of the
bigger towns and cities and they are free.
The price of a movie ticket varies between
TL 6 (US$4) and TL 20 (US$13)
depending on the cinema. As with
everything, the more expensive ones are in
Istanbul.
Homeowners insurance starts at TL 135
(US$90) per year and there is also a
compulsory earthquake insurance of
around TL 75 (US$50) per year (see
“Earthquakes”). Some home insurance
policies will include this.
A full-time maid coming five times a week,
eight hours per day, costs around TL 376
(US$250) per month. A part-time maid,
one to two times per week, costs TL 120
(US$80) per month. For more budget
guidelines, see the sample monthly budget
for Turkey here.
Utilities and communications
Electricity is supplied by the state run Turk
Elektrik Koruma and the average bill
varies depending on air-conditioner use
and the size of the property. For two
people, the average monthly cost is
approximately TL 38 (US$25). In bigger
cities and towns, gas is available from the
mains, while elsewhere people use
canisters, which are delivered free of
charge. The average monthly cost is TL 53
(US$35). Water charges add up to about
TL 15 (US$10) a month per person.
Apartment blocks generally have
communal heating systems, with each
property contributing towards the fuel
costs, as well as the upkeep of the building
and gardens. These charges are agreed
annually and are normally paid on a
monthly basis. The average is around TL
45 ($30) a month, but in some complexes
these HOA or maintenance fees can be
much higher.
Cable television is readily available and
costs as little as TL 9 (US$6) a month, but
telephones are relatively expensive.
Body Language
Turks have a different body language to Westerners and it can take a little
getting used to. It’s common for men to greet each other with two kisses
on the cheek and you will often see two men walking arm in arm. This just
means they are good friends.
Shaking your head from side to side is how we in the West say “no.” In
Turkey, it means, “I don’t understand.” A slight nod of the chin upward
while raising your eyebrows and clicking your tongue is how to say “no.”
If a Turk waves one of their hands up and down at you, palm towards the
ground, they are signaling for you to come over to them. It is considered
rude to point your finger or the sole of your shoe toward someone.
The gesture created when touching the forefinger to the thumb to form a
circle does not mean “ok.” In Turkey, this symbol means…well, it means
something else! So best not to do it.
How Bazaar!
Bargaining or pazarlik in Turkish, is a time-honored tradition. Not
everyone feels comfortable haggling their heads off, but it’s just the way
things are done. And, whether you’re shopping for bananas or leather
bags, bargaining is an essential element of a day at the market, and it can
be great fun! Shopping is very social in Turkey and you may be offered
tea or snacks. You should ask around for prices, to get an idea of the going
rates and don't feel obliged to buy something or be afraid of walking
away: you can always come back. If you agree to a price, though, you
have made a verbal contract and you’ll be expected to pay up, usually in
cash as there is a bank charge of 2% to 6% for transactions involving
credit cards. There’s no formula for bargaining, and practice makes
perfect. If you buy a few items, get a discount.
18
Turkish Shopping Cart
Sample Shopping List
Compiled from non-promotional prices at Carrefour and Migros supermarkets in Istanbul and
the west coast. All prices as of 30 August, 2009: 1 TRY = 0.667065 USD / 1 USD = 1.49910 TRY.
Note: Prices in Cappadocia, and in the eastern part of the country, and at the local markets all
over the country can be significantly less that those quoted below.
FRUIT
Oranges, per kilo: TL1.10 / US$0.73
Hazelnuts, 250 grams: TL10.38TL / US$6.92
Bananas, per kilo: TL3.00 / US$2.00
Cauliflower, per kilo: TL1.69/US$1.13
Apples, per kilo: TL2.95/US$1.98
STAPLES AND SUNDRIES
Loaf of bread: TL0.30 / US$0.20
Cheerios, 250-gram box: TL4.40 / US$2.95
Pasta, 500 grams: TL1 / US$0.67
Cooking oil, two liters: TL4 / US$2.68
Organic honey, 250 grams: TL2.63 / US$1.76
Cadbury’s selection box, chocolates: TL17.75 / US$11.91
Chocolate sweets, per kilo: TL6.50 / US$4.36
Frozen pizza, 250 grams: TL3.32 / US$2.22
Rice, 2.5 kilos: TL8 / US$5.37
Flour, per kilo: TL1.40 / US$0.94
Ketchup, 800-gram bottle: TL2.25 / US$1.51
Mayonnaise, 400-gram bottle: TL2.65 / US$1.78
VEGETABLES
Head of lettuce: TL1.49 / US$0.99
Carrots, per kilo: TL1 / US$0.67
Tomatoes, per kilo: TL1.39 / US$0.93
Mushrooms, per kilo: TL1.50 / US$1
Frozen corn, 450 grams: TL2.19 / US$1.47
Frozen green beans, 450 grams: TL1.89 / US$1.27
Sun cream, 300 milliliter bottle: TL21.25 / US$14.26
Frozen peas, 450 grams: TL1.80 / US$1.20
Shower gel, 350 milliliter bottle: TL3.95 / US$2.65
Potatoes, per kilo: TL1 / US$0.67
Shampoo, 400 milliliter bottle: TL6.75 / US$4.53
Dried chickpeas, per kilo: TL3.49 / US$2.34
Gillette Mach3 Turbo Razors, pack of four: TL17.90 /
US$12.01
DAIRY
Toothpaste, Colgate: TL7.90 / US$5.30
UHT milk, a liter: TL1.29 / US$87
Yogurt, per kilo: TL2.30 / US$1.54
BEVERAGES
Local cheese, per kilo: TL3.50 / US$2.35
Nescafe Gold, 200 grams: TL12.45 / US$8.35
Dozen eggs: TL3 / US$2
TL9.15 / US$6.14
Store-brand strawberry ice cream, per liter: TL2.80 /Nescafe Classic, 200 grams:
Tea, per kilo: TL10.60 / US$7.11
US$1.88
Coca cola, 2.5-liter bottle: TL2.39 / US$1.60
Margarine, 500 grams: TL3.25 / US$2.18
Bottled water, per liter: TL0.69 / US$0.46
Butter, 500 grams: TL1.60 / US$1.07
Fruit juice, per liter: TL1.25/ US$0.84
Fanta, 1.5 liter-bottle:
TL1.45 / US$0.97
MEAT AND FISH
Own brand vodka, 70 centiliters: TL19.90 / US$13.35
Beef, steak, per kilo: TL18.00 / US$12.07
Beer, 4 x 500 milliliters: TL7.35/ US$4.93
Lamb mince, per kilo: TL14.90 / US$9.98
Bottle of local wine, 75 centiliters: TL7 / US$4.70
Lamb chops, per kilo: TL20 / US$13.42
Bottle of raki, 70 centiliters: TL28 / US$18.79
Chicken legs, per kilo: TL4.99 / US$3.35
Chicken breasts, per kilo: TL6.25 / US$4.19
HOUSEHOLD
Whole chicken = TL4.30 / US$2.88
Branded fabric softener, four liters: TL6.90 / US$4.63
Local fish, seasonal, per kilo: TL10 / US$6.71
Branded Washing-up Liquid, 1.5 liters: TL4.25 / US$2.85
Salmon fillets, per kilo: TL13.90 / US$9.33
Dishwasher Tablets, 60 pack: TL18 / US$12.07
Persil Washing Powder, six kilos: TL19.90 / US$13.35
Toilet roll, 16 pack: TL7.13 / US$4.78
8 pack kitchen towel rolls: TL4.37 / US$2.90
19
see people polishing off a table-full of
these small dishes instead of eating a main
course; often with a bottle of raki—the
national drink—to wash them down.
Purees, salads, vinaigrettes, rolled cheese
pastries called sigara boregi, humus,
yoghurt dishes, and for the adventurous,
lamb’s brain to name but a few.
An Ottoman waterfront palace.
Requests for new lines are normally
processed in about three days and the
country also has a good mobile telephone
network with several rival operators. There
is a connection fee of TL 121 (US$80) for
new lines, and a basic line rental of TL
(US$10) per month. That doesn’t include
the costs of calls, which are expensive in
Turkey, but if you use international calling
cards from your landline, you’ll keep costs
down. There are also special numbers such
as 1045 that you can dial before calling
abroad, which can save you a lot of money.
Internet is readily available in most areas
and costs between TL 15 (US$10) and TL
31 (US$20) per month, depending on
where you are. Internet cafés are usually
around TL 2 (US$1.33).
A taste of Turkey
Turkish cuisine is famous for its starters—
called mezes—and it’s not uncommon to
Turkish food is a mixture of Central Asian,
Middle Eastern, and Balkan-style cooking.
There is a lot of regional variation;
vegetable dishes, olive oil, herbs, and fish
top menus on the Aegean and
Mediteranean coasts, on the Black Sea
coast anchovies and hazelnuts are
specialities, while the farther south you go,
the hotter it gets with spicy adana kebabs
and lahmacun pizzas.
You won’t find pork on the menu, as
Turkey is a predominantly Muslim
country, but veal and lamb are popular,
with beef readily available also. As a major
producer of fruit and vegetables, Turkish
markets and menus usually feature a wide
choice of healthy and very tasty options.
Everywhere you go you will see piles of
Karpuz, or watermelon, while on the coast
you can buy bags of melt-in-your-mouth
figs from the side of the road.
The Turkish word for Breakfast is
Kavhalti, which literally means “before
coffee.” Different soups—corba—are
popular for breakfast, but a really
traditional Turkish breakfast consists of
olives, slices of cucumber, butter, a boiled
egg, jam, honey, and sucuk, a spicy
Turkish sausage.
Tea and Cof fee
The Turks drink a lot of tea and coffee. They grow tea, too, and Turkish tea
usually comes from the Black Sea coast where conditions are ideal and
plantations can be seen stretching up the lush green foothills of the Pontus
mountain range. On any visit to the country, you are certain to be offered
one of the delicate little glasses of golden-brown liquid, often flavored with
mint or rose petals, and you might offend someone by refusing. Turkish
coffee is much stronger stuff and does not always suit Western tastes. It
describes the process of preparation, not the actual beans. The coffee is
made by boiling powdered roast coffee beans in a pot called a cezve. If you
take sugar, it is added during preparation, so you should ask for it when you
order.
Yoghurt is an important part of a Turkish
meal, and the Turks love it so much they
gave the word “yoghurt” to the English
language. You will find it in lots of forms
served with most main meals, starters,
and even as a drink, called ayran, which
is a mix of water, salt and yoghurt. It is as
popular as the major soft drinks in Turkey
and is particularly refreshing with a spicy
meal on a hot day.
Shish kebabs.
You won’t make it through a day in
Turkey’s cities or towns without coming
across simit, a circular, sesame-seedcoated bread. It’s sold on the street by
men wheeling carts, varies in its
freshness, and is usually at its best in the
morning.
Gözleme is a savory meal typical in rural
areas, made of flat, lavash bread folded
around a variety of fillings such as
spinach, cheese, and parsley, minced
meat or potatoes and cooked on a large
griddle.
The Turks do have a sweet tooth, and lay
claim to baklava, made of layers of
phyllo dough filled with chopped nuts
doused in honey. Other nations claim it,
but what’s sure is its central place on the
Turkish table as a delicious snack or
dessert. Baked in large trays, it’s then cut
into small squares. And, of course, then
there are the ubiquitous, mouthwatering
piles of Turkish delight in every market
in the country. The Turks know it as
Lokum and you won’t get it fresher than
here.
20
Eating out
Most people think kebab when they think
of Turkish food, and there are lots of
regional variations, some of which have
become popular across the country. It’s
the staple street food, as well as a feature
of upper-end menus. You can pick up a
filling kebab sandwich for less than TL2
(US$1.30) or pay around TL10 (US6.60)
for a sit down meal at an izgara—grilled
meat restaurant—with a side of grilled
green chilis. At an Ocakbasi, you sit
around a central grill and watch as your
meal is prepared.
There are several types of eateries all
serving different types of dishes. Even
the smallest town has a pide restaurant
where you can try a delicious local-style
pizza large enough to satisfy a big
appetite, starting at 4TYL/US$2.65.
In a lokantasi—which means restaurants
for shopkeepers and tradesmen—precooked dishes are kept warm on
steaming trays. It can be the nicest thing
you’ll ever eat, or the worst idea you’ve
ever had. It’s a good sign if the locals are
eating there. You can pick up a broth-like
corba (soup) for TL 2 (US$1.30) or
something more substantial for as little
as TL 5 (US$3).
To eat cheaply and well, go to restaurants
frequented by local people or to those
serving local food. In the main resorts,
it’s possible to eat out for about TL 35
(US$23) a head, but a little more off the
beaten track, or in a local restaurant, that
amount will buy two people a salad, a
main course, two beers, and some ice
cream for dessert.
Evening meals can start from approx TL
15 (US$10) for three courses and cost
anything up to TL 70 (US$46) for the
same in a fancier place.
The local beers, Tuborg and Efes average cost in
a bar or restaurant is TL 2 (US$1.30) or TL 3
(US$2). The cheaper the restaurant, the less
likely it is that they serve alcohol. Traditional
Turkish bars are called Meyhanes, but be aware
that Turkish women do not go into them, and nor
should Western women—the locals’eyes would
pop out!
Hamams
It’s easy to imagine you’re a Roman senator or an Ottoman princess
when lying in state in the marble chambers of a Turkish bath house, or
hamam. This Turkish institution is a fusion of Roman bath practices
and the bath houses of the Arabian Peninsula. There is one in nearly
every town, and the usual price is around TL 8 (US$5.30). However, in
the more opulent establishments in Istanbul, you can pay up to TL 30
(US$20) for a full service—though it can be worth it for the
architecture and history alone.
After changing and putting your valuables in a small safe or locked
drawer, you totter out on your takunya—awkward wooden clogs. Men
are given a towel called a pestemal to wear, while women wear
swimsuits or a pair of knickers. The baths are always segregated, either
permanently or through the allotment of different times. Look out for
Erkekler, meaning “men” and kadinlar for “women.”
In the main chamber (hararet) is a raised platform called the gobek tasi,
which means “navel stone.” Lie down here and sweat away a hard day
at the bazaar while waiting for the masseur to get to work.
Each person has an assigned set of taps, basin, and a scoop or bowl
with which to wash. It’s cheaper to bring your own soap; otherwise,
you will have to buy some at the baths. The massage can be a bit
vigorous for some people’s tastes, but it’s an exquisite way to relax.
Language
Turkish people will be genuinely delighted if you have a go at speaking
their language, and any effort to speak to them in Turkish is welcomed
with encouraging smiles and nods of appreciation.
Turkish has a phonetic alphabet with 29 letters. It’s the same as the latin
one but without “q,” “w,” and “x,” and with some additional letters taken
from German or invented. Pronuncation is not hard for English-speakers,
but sentence structure can seem the wrong way around as the verb goes at
the end and the subject is at the beginning.
Another difference is the use of suffixes. Turkish is an aggluntinative
language, which just means that words are made by adding suffixes. For
example, the word for milk is Süt. If you want to say “without milk” you
add “süz,” so you get sütsüz. Süz means without. You can build enormous
words in Turkish using these suffixes and the suffix you use depends on
the vowel sounds in the word.
Honestly, it’s easier than it sounds!
21
Monthly Budget for Turkey
APARTMENT OR HOUSE RENTAL
Rent
$350
Property Taxes
$0
HOA Fees
Transportation
Gas
Electricity
Telephone
Internet
Cable TV
Household Help
Food
Entertainment
$0
$20
Occasional bus and taxi fares
$25
Average value, assuming seasonal variations
$35
$20
$20
$6
Used for cooking, per month.
$10 basic monthly fee doubled to allow for calls.
$80
A maid coming twice a week for an eight-hour day
$40
Eating out, movies, bars, etc.
$200
Homeowner's Insurance $0
T OTAL
OTAL
Average. Cappadocia ($250) and Istanbul ($500) represent both ends of the
scale
Groceries
$796
APARTMENT OR HOUSE OWNERSHIP
Rent
HOA Fees
Property Taxes
Transportation
Gas
Electricity
Telephone
Internet
Cable TV
Household Help
Food
Entertainment
$0
$30
Per month
$20
Occasional bus and taxi fares
$44
$35
$25
$20
$20
$6
Used for cooking, per month.
Average value, assuming seasonal variations
$10 basic monthly fee doubled to allow for calls.
$240
A maid coming twice a week for an eight-hour day
$40
Eating out, movies, bars, etc.
$200
Homeowner's Insurance $90
T OTAL
OTAL
From 0.1 to 0.3% on declared value of the property annually. Paid in two
installments. For this monthly calculation, we’re assuming a property
valued at $200,000, applying the 0.1% rate (roughly $33). Also included
here is environmental tax (divided monthly comes to around $11) – it’s
around US$140 annually.
$770
Groceries per month
Per annum. Recommended. $50 compulsory earthquake insurance included
in many policies.
For more information on Turkish food and
eating habits, see “A taste of Turkey.”
Health care
Turkey's health care system is complex
and currently undergoing reforms aimed
at streamlining services. Public hospitals
are usually not of the same standard as
they would be in other industrialized
countries, but some of the best hospitals
in Turkey are public. The university
hospitals will often have the best
surgeons on staff, and some of them
worth keeping in mind are the
Cerrahpasa Medical Faculty Hospital in
Istanbul, Ege University Hospital in
Izmir, and the Hacettepe University
Hospital in Ankara.
There is an increasing number of private
clinics and hospitals, mainly in the west of
the country and the big cities—many of
them English speaking. Care standards in
these private facilities are usually up to
international standards and most of them
have direct contracts with insurance
companies like BUPA and American
Express. Even emergency care at a state-run
hospital will have to be paid for by foreign
citizens, so health insurance is essential. For
someone in their 60s, it costs in the region of
US$1,000.
Better standards of care and low costs
have meant an increasing number of
Americans and Europeans are traveling
to Turkey for general medical
procedures such as laser eye surgery,
dental treatment, and plastic surgery.
Normal pharmacy opening times are from
9 a.m to 7 p.m. from Monday to Saturday
and there is usually an emergency
pharmacy in each area. It’s often easier to
get prescription medication over the
counter in Turkey than it would be back
home, but always have a backup if you
suffer from a chronic ailment.
In rural areas of the east, the health
service can be almost non-existent. No
matter where you are, you could be
waiting a long time for an ambulance as
they are in short supply. If you can’t find
someone with a car or a taxi, then the
number for emergencies is 112.
22
For an excellent list of hospitals, physicians,
and dentists in Turkey see the U.S. embassy
in Ankara’s website.
Getting around
Efficient and comfortable, long distance
buses link the country, with hundreds of
companies providing cheap transport on
thousands of routes, often around the
clock. This is how most Turks travel and
by far the best way to travel long distance
without your own car. Prices can range
from TL 25 (US17) to TL 80 (US$53) per
one-way ticket on the same route,
depending on the level of comfort you’re
looking for. There is no overall bus
timetable for the country, and reservations
are not normally required.
In towns and cities, the dolmuses are small
vans or buses that run a set route stopping
wherever someone wants to get off or get
picked up. It is a very cheap way of getting
around, but just remember, the word
“Dolmus” means “stuffed,” and they can
get packed. The average price is TL 2
(US$1.30). In cities and big towns there
are also regular buses running, while, in
Istanbul, a ride on the metro or tram costs
TL 1.75 (US$1.16).
Taxi rates depend on the town, as the rate
is set by the municipal auithorities. They
are low by Mediterranean standards. They
are most expensive in Istanbul where you
will pay around TL 30 (US$20) for a 30- or
40-minute ride. It is not customary to tip
taxi drivers, but they will often round the
fare off to the nearest Turkish lira—either
up or down.
Ferry services connect Istanbul with towns
around the Sea of Marmara and on the North
Aegean coast (see www.ido.com.tr for more).
There are also ferry services from Aegean ports
to the Greek islands of Rhodes, Lesbos, Samos,
and Kos, while there is a private company
operating a service to Northern Cyprus from
Antalya.
Most domestic flights go through Istanbul or
Ankara, and are a convenient and inexpensive
way to travel long distances with fares ranging
from around TL 60 (US$40) to around TL 250
(US$165). Turkish Airlines is the national airline
and there are other operators in what is a growing
market.
A Turkish train ride can be a wonderful way
to see the country, but Turkish railways
cover only a fraction of the country that
buses do, and are generally slower and more
unreliable. If you have the time, and want to
travel in a little more comfort, then you can
get a sleeper ticket for less than TL 60
(US$40) on the Ankara to Istanbul line.
The Turkish Railways website is difficult
to navigate but contains some information
in English.
For more hints and tips on traveling in
Turkey, and getting the best of your time
there, www.turkeytravelplanner.com is an
excellent website from American expat and
all-round Turkey expert Tom Brosnahan.
Driving in Turkey
Turks have one of the higest road accident
rates in the world and it’s no surprise given
the way many of them drive. But if you take
that into account and drive defensively, you
shouldn’t have any problems.
Driving is on the right-hand side, and all
foreigners may drive with an international
driving license. You should have a copy of
your license, together with your passport
and insurance documents, with you in the
car at all times.
Road markings don’t have the same place
in Turkish driving culture as they do in the
West, and drivers tend to wander from one
lane to another. They also like to honk their
horns: don’t let it get to you, it’s not seen as
a big deal here, and after a while it
becomes just another background noise.
On long drives, make sure you have
enough gasoline, as fuel stations are not as
plentiful as they are in other parts of
the world. The U.S. State Department
has a comprehensive driver safety
briefing on its website.
Doing business
For thousands of years, Turkey has
straddled some of the world’s major trade
routes, and it’s still an important player in
international trade. Its strategic location
means it’s a good hub for manufacturers
anxious to access markets in Russia, the
Caucasus, the Middle East and Europe. It’s
in the top 20 economies in the world, a big
producer of steel and cars, and is a major
U.S. trading partner.
Turkish people do shake hands when
meeting, but it’s not customary when you
are about to leave. When addressing a man
the most common method is to call a man
by his first name followed by “bey”
(pronounced bay). A woman's first name
would be followed by “hanim”
(pronounced ha-num). Many businesses
are family run enterprises and it’s
important to develop a good personal
relationship,
Regular business hours are 9 a. m. to 5 p.
m., Monday to Friday. Banks open from
8.30 a.m. until 5.30 p.m.
For a measure of business regulations and
their enforcement in Turkey compared
with other countries see the World Bank’s
“doing business” website. For a website
devoted to doing business in Turkey see:
www.businessinturkey.com.
About The Author
Eoin Bassett is an Irish journalist and
editor. He’s traveled throughout
Mexico, hung around Havana, eaten
his way across France and Spain, and
lived in the mountains of Switzerland.
When he’s not traveling, he’s writing
and editing articles in his native
Dublin. He plays the saxophone
badly, likes to fly fish, and has a
passion for archaeology. He’s
currently writing a book about Irish
mercenaries
in
19th-century
Venezuela.
23
World’s Top
Retirement Havens
for 2010—Part I
I
Porec, Croatia
Properties
Kuala Lumpur, Malaysia
n our November 2009 issue, we
unveiled the top 10 havens for 2010—
the countries we believe hold out the
greatest potential for an enhanced living
experience overseas.
Remember, as we remind you often, you
aren’t going to retire to a country. You’ll
retire to a little fishing vlllage or a
mountain paradise...maybe the historic
center of a Colonial city or a Caribbean
island. These then are the kinds of thinsliced retirement havens we introduce you
to every month in these virtual pages.
In that spirit, our property sampler this
month features thin-sliced real estate
offerings from five of our 2010 top havens.
More to follow next issue…
Unitedville, Belize
In the village of Unitedville, in Belize’s
Cayo district, this concrete and wood home
sits on 2.6 acres of manicured land with
many fruit trees (including lemon, lime,
orange, grapefruit, and papaya) and
tropical plants and flowers. With views of
the Belize River Valley and surrounding
countryside from the hardwood deck, it has
two bedrooms, two bathrooms, kitchen,
utility room, workshop, and carport. A gas
station and shops are in easy walking
distance. Price: US$149,000 (recently
reduced).
Four miles from the Istrian town of Porec
and its beaches, these stone cottages are
located in a small village. Completely
renovated and fully habitable, each has one
bedroom, one bathroom, kitchen, and
living room with a fireplace. Special
features include a safe and underfloor
heating. On the western bank of the Istrian
peninsula, Porec has developed from a
small fishing village into a major tourist
hub and has many bars, restaurants, and
historic sites to explore. Price: from
US$146,569.
Six miles outside the city center, this
modern, 10th-floor apartment has fantastic
views. Within easy walking distance to
shops and amenities, it’s also convenient to
the highway for access to the airport.
Offered fully furnished (with solid teak
furniture), it has 1,300 square feet of living
space with three bedrooms, two
bathrooms, open kitchen and living area,
and balcony. Price: US$82,000.
In France’s Languedoc-Roussillon region,
this stone village house is in a hamlet, four
miles from a village with all amenities.
Covering 635 square feet, it has two
bedrooms, sitting room/kitchen/living
room, terrace, cellar, and garage. Offered
partly furnished (including dining table
and chairs, sofa-bed, two double beds,
fridge-freezer, washing machine, and
more), the property is in move-in
condition. Price: US$111,037.
Built in 2006, “Villa Coconuts” is part of
the Casa Linda development, located one
and a half miles from the town of Sosua on
the DR’s north coast—and close to the
renowned beach of Cabarete. Currently
renting for US$700 a week, the villa has
two air-conditioned bedrooms, two
bathrooms, swimming pool, and tropical
garden. The development has 24-hour
security and maid service is available.
Price: US$180,000.
Castanet le Haut, France
Sosua, Dominican Republic
24
Better than Dubai?
Expatriate Healthcare reports that expats
leaving Dubai in the United Arab Emirates
in search of an equally high standard of
living, though at a lesser cost, are starting
to
consider
neighboring
Qatar—
particularly its capital Doha. Qatar
currently boasts one of the fastest-growing
economies in the world. And, unlike
Dubai, experts say Doha is developing at a
steady rate that shouldn’t be unsustainable
in the future.
It also has lots of
opportunities for those wishing to work
overseas.
Brits face bulldozers
in Spain
Twelve British property owners in
southeast Spain have been issued with
demolition notices. The Telegraph reports
that the construction of the homes in the
town of Almox, Almeria, was approved by
the local town hall but later nullified by the
regional authority. The owners plan a
protest later this month on the streets of
Almeria. Another British couple had their
home bulldozed in the same area two years
ago.
Meanwhile, it’s good news for the former
Indian home of writer George Orwell,
which is to be saved from demolition. Born
in India, Orwell also spent time in Paris,
Barcelona, as well as in his native England.
His birthplace in Motihari is to be
converted into an attraction for visitors,
following pressure from campaigners to
save it.
Five top fares to the Caribbean
w
w
w
w
w
Global News
Global News
What the numbers say...
The global crisis is forcing 70% of British expats—living across Europe, the U.S.,
Canada, Australia, and New Zealand—to consider moving home. (Source:
International Advisor)
23% of U.S.-based expats are also considering a return to their native homes
(compared with the global average of 15%). (Source: HSBC Expat Explorer Survey)
Dutch expats (that is, folks from the Netherlands who live in a foreign country) die an
average of 20 years earlier than those who stay home. (Source: Radio Netherlands
Worldwide)
Changes to
pr oper ty law
Kuwait
Maybe not the most popular retirement
haven, but Kuwait is proposing legal
changes that may allow expats in the
country to own property. Currently only
Arabs who hold special permits can own
here. The new changes would allow expats
from other countries ownership of one
apartment in the country. Kuwait imposes
strict policies on expats. Foreign workers
who lose their jobs in Kuwait, for example,
are expected to leave the country within
one month. Regarding the proposed
changes to property ownership, the
authorities are certain to point out that this
is not linked to residency privileges.
Instant access to health
r ecords overseas
In a move to outshine its competitors,
international health insurance company
IntegraGlobal has come up with a unique
benefit for expats. One of the new features
of its international health insurance plan is
a portable medical record. It means all your
medical history can be stored in one place
Atlanta, GA to Nassau, Bahamas from US$149 one-way on Delta
Miami, FL to Trinidad from US$79 one-way on Caribbean Airlines
Dallas, TX to Cancun, Mexico from US$162 one-way on American
Austin, TX to Cozumel, Mexico from US$148 one-way on American
Atlanta, GA to Santo Domingo, Dominican Republic from US$209
one-way on Delta
and easily made accessible to health care
professionals overseas. For more
information on the electronic health record
account and general information on the
health policies on offer, check out the
IntegraGlobal website.
Extended permits in
China
New regulations in Shanghai mean that
certain expats, who were previously
granted a one-year visa, can now stay in
the country for three to five years. The
change applies to expats of a “high calibre”
who invest a high amount in China. The
Global Times reports that such privileged
expats include “those employed as highlevel managers or high-tech workers in
State-owned
enterprises,
statutory
representatives of foreign enterprises in
China, and those who have been named
‘Honorary Citizens.’” Shanghai is
currently home to 150,000 expats. At
present, it’s unknown how many will
actually qualify for these longer-term
visas.
Cultural capitals for
2010
The three cities named European Capitals
of Culture for 2010 are Essen, Germany;
Pecs, Hungary; and Istanbul, Turkey. Essen
hopes to draw visitors to the 120 theaters,
100 concert halls, and 200 museums in its
greater area; Pecs has a new cultural
quarter with cafés, parks, art studios, and
historic buildings; while Istanbul plans
festivals of music and dance.
25

Turkey - Overseas Retirement Letter

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