Foreign Residential Property: Turkey or Montenegro?

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Foreign Residential Property: Turkey or Montenegro?

09 February 05:04 PM

These days more and more investors tend to investors in foreign residential property. Wealthy people purchase apartments, villas and townhouses in Spain , Great Britain, Switzerland etc.

At the same time, those people who cannot afford to buy expensive homes, strive to invest in the residential property of other countries. Turkey and Montenegro are especially popular with them.

Turkey and Montenegro

Most foreign investors know little about those countries and their housing markets. The key fact is that both the countries are tourist centers with high-quality services and relatively low prices.

Montenegro has an outlet to the Adriatic sea, which is colder but much cleaner than the Mediterranean and Black seas. Montenegro offers tourists a wide range of leisure opportunities from sunbathing on the beach and swimming in the sea to skiing and snowboarding in the mountains. Beautiful nature, fresh air low prices and high-quality services make Montenegro a perfect place for vacation. Loyal legislation is another factor speaking in favor of investing in Montenegro .

However, there is a certain percent of uncertified residential property left after the disintegration of Yugoslavia.

As for Turkey, there are no such legal issues. Turkey can boast a well-developed and efficient cadastral system. The local legislation defends an individual’s right if he/she has a TAPU – the certificate of property rights. Moreover, it is impossible to purchase residential property in Turkey without the Turkish Ministry of Defense as there are special zones in Turkey where property sales contradict the country’s military doctrine.

It should be noted that most foreign investors buy Turkish property to make profits. The local housing market grows by 10% a year on average, which means you can make decent profits as the market is still undervalued.

On the other hand, the territory of Turkey is relatively big. So, it is necessary to examine closely the current situation in the local housing market of any region where you want to purchase residential property. The closer the area is to the borders with Syria, Iraq or Iran and the farther it is from the sea, the lower the housing prices in this area are.

Turkey, Antalya. An apartment – €70 000, 75 square meters — (€933 /m²). 100 meters to the sea.

Montenegro is another story. Its territory is relatively small. However, the transportation and tourist infrastructure is highly developed and is being improved.

However, there are problems with constructing new buildings in coastal areas. So, it is better to purchase ready-made housing units or those that are under construction.

Montenegro , Бар, Dobra Voda. A villa – €250 000. 170 square meters.

Expenses

When buying residential property in Montenegro , you will have to pay a 3% budget tax and an annual maintenance tax – form 0.08% to 0.8%. In turkey, you will have to pay a 4% tax plus 0.01% a year per maintenance.

Obviously, the cost of a certain housing unit depends on several factors, including the location, living space, infrastructure and others. A square meter of residential property in Montenegro and turkey starts from €500. However, the cost of most housing units available for sale is within the range of €1.500-€3.500 per square meter.

Experts recommend buying residential property in Montenegro if you want to lead a calm and slow-paced lifestyle. However, if you are planning to purchase foreign residential property for investment or commercial purposes, Turkey is a better option.

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