Istanbul Apartment Investment for a UK Property Investor
$195,000 · 10 years · 9.00% fixed. A UK property investor identified Istanbul as offering strong capital growth potential and rental yields driven by a large domestic and expatriate rental market.
The Client
Buy-to-Let Investors Abroad
The Challenge
A UK property investor identified Istanbul as offering strong capital growth potential and rental yields driven by a large domestic and expatriate rental market. He purchased a two-bedroom apartment in the Şişli district. Turkish mortgage rates are substantially higher than European equivalents, but purchase prices remain low relative to comparable European cities.
Our Solution
Doulton sourced a Turkish bank with a foreign national mortgage product. The conservative LTV at 50% reflected the currency risk and higher rate environment. The investor's UK income was used for affordability. A local property management company was appointed pre-completion.
The Outcome
Apartment purchased. Tenanted within three weeks to an expat professional. Gross rental yield in USD terms: 8.1% on purchase price - more than covering the mortgage cost. Key highlights: Foreign national Turkish mortgage placed; Conservative LTV managed currency risk; Gross USD yield of 8.1% - mortgage cost covered.