Property: Turkey vs Bulgaria

Only inhabitants of Russia annually spend a minimum of 10 billion dollars on real estate abroad. Thus a main objective is "holiday apartment" purchase, that is real estate for rest, though the share of people, whose goals are the investment of capital is exclusive. For those who are ready to purchase, there is often a choice between several countries. As a rule, it is Turkey, Bulgaria, Spain and Montenegro. Montenegro, among these four countries, is perhaps the weakest competitor as its resorts are on the coast of the cold Adriatic Sea. Bulgaria – the traditional destination for those wishing to buy budget real estate for holidays.

The official statistics say that in Bulgaria more than 300,000 Russians own real estate. Amongst all the advantages of purchasing of real estate here, there are some disadvantages:

general economic backwardness (reason why the Bulgarian Turks are trying to be legalised on the historic Homeland in every possible way),
complexity in both hired employment, and the development of own business,
problematic situation of renting the property out, its low liquidity,
complexity in obtaining citizenship,
decreasing transport availability because of the raising prices of air flights.

Fans of the rural areas, seeking to buy a villa in a quiet place outside noisy resorts should reflect, as in Bulgaria the infrastructure outside the cities is very poorly developed. As for natural advantages, you shouldn't forget that the Black Sea is the Black Sea – with its quite short summer season (in comparison with the Mediterranean and Red Sea, for example) though mountains are suitable for beginners and fans of long boring roads.

Real estate purchase in Bulgaria doesn't grant the right for citizenship, or even for a residence permit, and the multi-visa grants the right to stay in the country for no more than 180 days in a year; so if you’re thinking about purchasing real estate in Bulgaria and to obtain a dual citizenship, think twice. Only after five years' continuous extension of the multi-visa it is possible to apply for permanent residence, and after five more years – for citizenship.

The Bulgarian authorities allow to acquire practically any real estate, except lands of agricultural purpose and in this segment there are very rigid restrictions, therefore it is necessary to check the land status before thinking of building a house there independently.

Beach territories of the Turkish land have been well investigated by tourists from many countries in the past years and it became extremely popular from the point of view of real estate purchase. And if people with above average levels of income can afford to rest on the Turkish Mediterranean coast but this is not considered very prestigious, to buy a villa on the Mediterranean or Aegean Sea coasts is a very good cause indeed. For a rather moderate amount of money in Turkey you can buy a quite decent apartment in 15 minute walk from the beach, 1.5 hour journey from the skiing track and in perfect overall condition.

Despite price advantages, real estate market in Turkey isn’t very popular in many countries, as there are loads of stereotypes. You shouldn't be surprised that local realtors operate with apartment prices, instead of square metre prices – this is how it’s commonly done here in Turkey. Sometimes you come across some unfair building companies, but it is not as common. In this regard it is very important to find a worthy representative of the interests.

For the purpose of attracting foreign investors the Turkish authorities grant the right of receiving a residence permit to owners of real estate in this country (and members of their families) for the period of one to five years. Having a residence permit for five years and staying in the country not less than 180 days in a year, allows foreign owners of real estate in Turkey to apply for citizenship. If you regularly pay taxes and avoid police incidents, chances of obtaining the Turkish passport are nearly 100%.

Legal side of acquisition of housing by foreigners is very simple – in Turkey have a principle of reciprocity. Buying property (obtaining the local certificate of registration of real estate – so-called TAPU) only requires a valid international passport. It is only necessary to arrive in the country twice: for signing of the contract of purchase and sale and supplying the initial sum and then for obtaining the certificate of property ownership. Residence permit for a year costs approximately $300, and registration of TAPU will levy a one-time tax payment in the amount of 0.1-0.3% of the property value. Remarkably, foreigners as well as citizens of Turkey become owners of a share of land, even when buying an apartment. It guarantees legal security in case the land is required for state needs or when the housing will be subject to demolition.

As a rule, foreign citizens in Turkey acquire housing in protected complexes with pools, gyms, saunas and own (as long-term rent) beach. Monthly service charge in such complexes (complex territory cleaning, garbage removal) is included, and cleaning of entrances and complex interior plus servicing of all communication usually costs about $30. Everywhere in Turkey for the past 2 years they require obligatory insurance in the emergency cases such as earthquakes from $200 to $500 a year (rates are fixed, depending on number of square meters). Plus it is necessary to pay for water and electricity. Water is rather inexpensive, and electricity – charged at various prices during 4 periods daily – is very convenient. Such utilities as heating aren’t provided for the most parts of Turkey (individual water heating systems and “split systems” for heating are used), as a result housing and communal services will cost 2-3 times cheaper, than in most parts of Europe.

The majority of Turkish houses have hot water heated up by sun powered systems, gas is brought in cylinders, however foreigners prefer using electric stoves. Alanya has been actively developing recently, with the development of own airport, ambitious construction of golf fields and constant city improvement for the purpose of becoming a regional centre. The region of the Aegean Sea is less popular as it is considered elite and real estate there is 1,5-2 times more expensive, than on the coast of the Mediterranean Sea.

In summary, the main differences of purchase of real estate in Turkey and Bulgaria are as follows:

Better developed infrastructure in Turkey in comparison with Bulgaria;
Approximately 30-40% lower prices for air flights to Antalya, than to Burgas;
Swimming season in the Mediterranean Sea is 6-7 months, whereas on Black Sea only 4;
When receiving a permanent residence and a citizenship it is easy to understand the loyalty of the state: in Bulgaria the owner is only eligible to apply for a multi-visa and only in 5 years can he apply for residence permit, yet in Turkey it is possible to obtain citizenship in the same 5 years time;
The economy of Turkey is much more dynamic and to open a business or to get a job in Turkey is much simpler.

The decision always remains with you, and we are always ready to help you with the real estate choice!

Author: RestProperty

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Published: 05.11.2012