Altinkum Property

Special offers for special customers

2006-06-22T17:23:00.000+03:00

Turquoise Homes has been working very hard this year on developing our customer offers and we have two new deals, exclusive to new buyers.

Offer 1! FREE WASHING MACHINE

For all new buyers on Turquoise Homes' own projects, a free brand-new washing machine for your apartment. This washing machine comes with full service guarantees and will free you from boring sunday mornings at the nearest launderette, not to mention saving you £400 - enough for two return flights to Turkey!

Offer 2! £1,500 CASH BACK

If you buy a property on one of our own projects and pay upfront, we will also give you an amazing £1,500 back - in cash! This offer applies to all new customers who pay the first 90% of their property cost at the time of purchase. That's a total of 8-10 return flights to Turkey - enough to cover two trips for a family of four plus an extra sneaky break away from the kids!

These offers are available on three projects:
Luxury Development Phases 1 & 2
Luxury Development III

These three neighbouring developments are within 10 minutes walk of Altinkum's Main Beach and 5 minutes walk of the main street. Luxury Development Phases 1 & 2 are identical with a selection of 1, 2, 3 bedroom single-floor apartments and 3 bedroom duplexes. Luxury Development III consists of 3 bedroom single-floor apartments and 4 bedroom duplexes. All properties are south-facing with wide terraces / balconies and granite-tiled floors, fitted kitchens and bathrooms, elegant decorative plasterwork on the ceiling, intercom entry systems and uPVC double-glazed doors and windows.

We still have a handful of these properties available so whether you are looking for one, two or three bedrooms, or even a duplex, there is something to suit your family and your pocket.

Altinkum Property 1-bed apartment
Altinkum Property 2-bed apartment
Altinkum Property 2-bed apartment
Altinkum Property 3-bed apartment
Altinkum Property 3-4 bed duplex penthouse

* Please note, we can only make these offers available to buyers on our own projects and ONLY to new buyers.

Another Great Deal for Turquoise Homes customers - Your Property in Print!

2006-03-18T12:34:00.000+02:00

We're always working hard to negotiate some good deals for customers of Turquoise Homes and we've managed to land another one. Our friends at Exclusive Holidays Magazine, a publication you may have seen on the shelves of your local branch of WH Smiths and all good bookshops (as the saying goes), have put together something special for Turquoise Homes customers:

Option 1: 1/6 page advert in Exclusive Holidays Magazine for 12 months + Full page web advert for 12 months on www.thevillafinder.com for £250 which is normally £515 (+ vat if customers are based in the uk).

Option 2: 12 months advertising on www.thevillafinder.com for £95.

Here's a bit of information about the magazine straight from the horse's mouth:

"Since its launch in 2001, Exclusive Holidays magazine has gone from strength to strength, now boasting over 350 pages of private villas, apartments and farmhouses all over the world, as well as villa companies offering a wide selection of properties. As well as properties for rent, Exclusive Holidays also features informative articles on worldwide destinations, plus a travel section packed with flights, travel insurers, car hire and other relevant services. Published 4 times a year, the magazine has a high profile in the UK and is available in leading retailers such as WHSmiths and Waitrose, as well as promotions at holiday exhibitions throughout the year."

If you're interested in this new offer, exclusive to Turquoise Homes customers, contact info@tropicalbeachhomes.com and we'll start the ball rolling for you! And in the meantime, check out our own ad on the site: http://www.thevillafinder.com/EH2111249.html

Exclusive to Turquoise Homes Customers - Money off Top Holiday Rentals Website!

2006-01-26T18:50:00.000+02:00

Here at Turquoise we're always looking for ways to do something extra for our customers and as a lot of you are hoping to let your properties this year, we have arranged something extra-special just for you. Owners Direct, one of the top holiday rentals companies on the web, is doing an exclusive deal that is only available to Turquoise Homes customers.

But first, this is what Chris, of Owners Direct, has to say about the company:

"Owners Direct was formed in 1997, and for the first three years we produced a printed brochure of privately owned properties for holiday rental. In 2000, we transferred our business entirely onto the internet. We were therefore one of the first companies to advertise holiday accommodation "direct from the owner" over the internet. Our company has grown steadily over the past 5 years and we now advertise over 7000 properties Worldwide. Ours is a very popular website with holidaymakers, and we are currently receiving up to 20,000 visitors to our site per day, who between them view over 300,000 pages per day."

The normal cost of advertising on Owners Direct is £100 for 12 months or £65 for 6 months, excluding VAT for UK residents, and there is an existing introductory offer of 3 months for free. This price includes 4 photos, and additional photos can be added at £5 per photo.

Turquoise Homes customers can take advantage of ANOTHER three months for free, meaning a whole year's advertising for an amazing £65!

This offer is only available through Turquoise Homes so if you'd like to take part, please email me expressing your interest, or call the office on +90 256 813 58 66. Registration on the website is through a standard process so you will need to have your account adjusted manually after registering. We're hoping this will be a valuable supplement to the automatic posting on our website, and naturally we will continue to offer our courtesy meet-and-greet service, arranging airport transfers, cleaning and a general friendly welcome for your guests!

Chris tells me that now is the time to get those summer rentals so get your descriptions ready and get going!

(and don't worry if you're not a Turquoise Homes customer - Owners Direct offer an excellent combination of superb quality and incredible value for money for ANYONE looking to rent out their holiday home. You can register online at http://www.ownersdirect.co.uk/register.asp
and become a member of one of the highest-ranking holiday rentals sites on the web!)

New Flights Serving Altinkum

2006-01-20T16:11:00.000+02:00

Two pieces of good news for those with an interest in Altinkum, whether you're just looking for a decent flight for your holiday or are thinking of buying property and are looking for evidence that this part of Turkey is as up-and-coming as we say it is...

Firstly, hooray for BA! Having seen my snide comments about the cost of their flights and the inconvenience of having to fly via Istanbul, British Airways have responded by introducing direct flights between London Gatwick and Izmir, starting from 26th March. A little birdie (thanks BH!) has told me that prices start from £140 RETURN, including taxes! The little research I've done seems to back this up so get booking before they all sell out. BA, a little credit for the idea, and some commission for the bookings, please!
British Airways New Summer Timetable News

Secondly, hooray for Thomas Cook! Whose summer 2006 flights to Bodrum start on the 1st April. Sample cost , return to Gatwick - £122.61 per person! Again, commission due on any bookings, I think!
Thomas Cook Website

(Incidentally we DON'T get commission on any flights you book whether through our recommendation or otherwise. Our policy when we ARE offered commission from our suppliers is to pass the savings onto you, whether through a discount or additional service for free - just one of the many reasons why it's good to choose Turquoise).

New Year, New... Insurance!

2006-01-11T18:59:00.000+02:00

Happy New Year from all of us at Turquoise Homes, and a warm welcome into 2006.

Things are getting nicely underway over here in Altinkum, with great weather smiling on the builders keen to get their new properties up and running before the start of the season. We have some of our own which are coming along quite nicely, as you can see from this picture taken in early December (next installment eagerly awaited!).

Another type of new development came out of our visit at the end of last year to Overseas Property Professional (OPP Live '05) at Alexandra Palace. We at Turquoise Homes are always looking to improve the services we offer our customers, and in response to requests from some of you, we are working with a UK-based company to bring you a number of different products to make owning or buying your property in Turkey easier and happier than ever. This is a brand-new partnership and the products themselves are also brand-new to Turkey so the finer details are still in development, but look out for.... [cue Price Is Right theme music]

Home insurance in English for your property in Turkey - 24/7 helpline!
Equity release on your second home in Spain to invest in your third home in Turkey!
£10 foreign exchange and transfer from your UK bank account to your Turkish Lira savings account!
A discount for Turquoise Homes customers on insurance, foreign exchange and much more!

These are just three examples, and we have many more in the pipeline so please watch this space, or contact us if you want to know more. If there's anything else you'd really like to see us offer, let us know - this really is for you and so the more input we have, the better we can make it.

So, New Year, New Insurance. Something this good doesn't need a catchy title, anyway. Happy new year.

Turkey Property Law Reinstated! Applications from new foreign buyers now being accepted

2005-11-15T13:00:00.000+02:00

Towards the end of 2004, investigations took place into the law governing the purchase of property in Turkey by foreign individuals. There was concern that a loophole in the law permitted foreign entities in the guise of individuals to purchase large plots of land (30,000 hectares, about the size of a medium-sized village) in sensitive areas of the country.

Earlier this year (2005) the Turkish Constitutional Court made a ruling that the law was unconstitutional, and subsequently suspended the law, pending redraft. The initial redraft was rejected, and as a result, new or pending applications for title deeds by foreigners could not be processed until the law was redrafted and ratified.

The new law has now been ratified by the Turkish Government, and yesterday, 14th November 2005, the Land Registry was able to recommence processing deed applications for property by foreigners. This means that all applications by foreigners wishing to purchase holiday homes will be processed as before by the Turkish Land Registry. The only significant change known at the moment is a reduction in the amount of land foreigners can purchase, down now to 10,000 hectares.

As yet, the British Embassy in Ankara has not yet updated the information on its website, but readers should expect to see new information published soon.

New Cheap Short-Trip Flights to Izmir

2005-11-07T10:59:00.000+02:00

British owners of homes in Altinkum have found their choices on when to visit and for how long restricted by the flights available. During the summer we largely have to rely on the charter airlines and their 7, 14 and 21 day holiday flights, and during the winter on expensive BA and Lufthansa flights via Germany or Istanbul.

But now two new German players have entered the game - GermanWings and Sun Express. Both fly from the UK and Ireland via Germany but undercut BA / Lufthansa prices considerably, and fly on several days of the week, allowing the canny flyer to potentially spend a long weekend in Altinkum for under £150!

At the moment, GermanWings flies from Dublin, Edinburgh, Birmingham and London Stansted to Cologne/Bonn and Stuttgart, and from Cologne/Bonn and Stuttgart to Izmir during the summer months.

Sun Express offers a winter service to Izmir from Cologne/Bonn, Berlin Schoenfeld, Stuttgart, Frankfurt-Main, Hanover, Zurich and Munich, enabling passengers to connect from all over the UK and Ireland on Easyjet and Ryanair.

Congratulations to both these operators for recognising the demand for greater flexibility and cheaper prices and for making the effort to meet this demand. And many thanks to Barry D and Graham B for their great recommendations.

Why you might not want to use your credit card abroad

2005-10-08T21:08:00.000+03:00

The amounts of money involved when buying a property abroad tend to be a bit on the large side. You might be getting a lot for your money, but when you have to think about paying your deposit, buying furniture, paying for a solicitor and buying the wife that diamond necklace she’s been asking for as a celebration, the amounts of money involved are more than most people choose to carry in cash when travelling abroad.

Using your credit card to pay for these big spends, much as you would do at home, may seem like the perfect solution. You might already have checked with your credit card company and found they don’t charge commission on purchases abroad. But beware! Most credit card companies incorporate hidden charges into their foreign currency transactions.

Don’t believe me? Test it out. Take any credit card statement that includes a purchase made abroad. Note the date of transaction and the exchange rate charged.

Now go to http://www.oanda.com/convert/classic . This useful tool allows you to check exchange rates for 164 different currencies on any given date, and they use the most neutral banking rate available.

For example, leave the “convert amount” field as 1 and choose the date of your purchase in Turkey. Select GBP (the international code for UK Sterling) from the menu on the right-hand side. Now select TRL (Turkish Lira) - the foreign currency in which you paid for your goods - from the menu on the left-hand side, and click on the Convert Now button. This will give you the number of Turkish Lira to the pound on that date. Now compare it against your credit card’s exchange rate. Notice the difference?

In the example below, I’ve chosen today’s date, Saturday, 8th October, and the rate is 2,379,992 lira (2.379992 New Lira or YTL) to the pound. The rate here in Altinkum is 2.35 so not far off.

Now a live test – my credit card’s rate against the local exchange rate here.

Today I bought myself a nice diamond ring for £1,000. Don’t ask me why – I just felt like splashing out. The jewellers used the local rate and put it through on my credit card at 2.35 YTL to the pound, charging me 2350 YTL or 2,350,000 Turkish lira. However, my credit card statement lists the purchase as £1,053.81!

Now if I look again at my credit card statement I can see that the exchange rate used was 2.23 YTL. So the jeweller must have ripped me off, right?

Wrong. The jeweller didn’t rip me off – my credit card company did. Although they say they don’t charge any commission or fees on currency, this isn’t strictly true – they just don’t charge it separately and they don’t disclose it clearly in their paperwork. A dirty trick? Possibly, and one that the Consumers’ Association is fighting against. As Jamie Felix of The Guardian says in the article linked below, Visa and Mastercard had to refund around £400 million in improperly disclosed foreign currency fees to customers in New Zealand after a court ruling that the customers were not made aware of the charges by the credit card companies.

So what can you do? Read the small print for your credit card very carefully, understand what the charges are, and factor it into each purchase – in essence, bite on it.

Alternately, pay cash, use Traveller’s Cheques (although these can be hard to exchange) or change credit cards. Nationwide and Lombard Direct don’t make any charges for foreign currency purchases and some others offer cheap fees or deals that offset the cost.

The charges may be there but as publicity grows, hopefully the card companies will buckle and reduce their fees or at least make them clearer. Until then, it’s cash or charge.
For more information check out this excellent article on the Guardian website:

http://money.guardian.co.uk/creditanddebt/creditcards/story/0,1456,1269346,00.html

Historic Day for Turkey and Historic Day for Europe

2005-10-06T18:28:00.000+03:00

After thirty hours of talks and 42 years of waiting, the moment has finally arrived. On 3rd October, Turkey and the European Union agreed a deal to launch membership talks with an aim to bring Turkey into the EU by 2020.

The likely effects of EU membership are various. The benefits for the EU could be more political than economic. Strategically Turkey controls some very important resources, and borders with eight countries, including Iran, Iraq and Syria in the east. Europe would see greater stability in the Mediterranean, Middle East and Black Sea areas, and of course in the relationship between Greece and Turkey – all of which would of course benefit Turkey as well – plus Europe would carry greater political weight as a diverse union with power on the borders of Asia.

For Turkey the benefits are more practical than theoretical. EU accession historically cements hard-won democracy in countries that have only recently made the transition. Additionally there are the economic benefits – stablisation of currency, foreign investment and an increase in foreign trade.

In theory, having agreed to these talks, the EU should allow Turkey to join as long as it meets the criteria that is laid out in the framework agreement. The journey is far from over, however. There are potentially 15 years and enormous political changes required before Turkey becomes a member of the EU.

To see this article in full and for more information about Turkey's accession to the EU, the obstacles in its way and the changes it has made so far, please follow this link: Full Article

Grilled Lamb Kofta Kebabs with Herbs & Chillies

2005-10-01T14:54:00.000+03:00

This delicious, typically Turkish, dish serves four people and is perfect served with flat bread (pitta bread for example) and cucumber and tomato salad. If you want to really enjoy your meal, accompany it with raki, a powerful aniseed-flavoured spirit a bit like Pernod - preferably mixed with water if you want to remember finishing your food!

Lamb koftas are easy to prepare and take about 10 minutes, plus 30 minutes standing time.

Ingredients:
8 Tbsp Fine-grained bulgur wheat
1 lb Medium-fat ground lamb
1 lg Onion, minced
1 x Jalapeno seeded and minced
1 sm Sweet red pepper seeded and minced
2 tsp Crushed garlic
1/2 tsp Crushed red pepper flakes
1 1/2 tsp Freshly ground cumin
8 Tbsp Chopped flat-leaf parsley
8 Tbsp Chopped fresh mint leaves
Salt to taste
Black pepper, freshly ground to taste
2 Tbsp Olive oil

Method :
Rinse the bulgur under running water, put in a bowl, sprinkle generously with enough water to moisten, and leave to stand for 30 minutes.

Add all the remaining ingredients, season with salt and pepper, and knead to blend.

Mix to a paste in food processor.

Shape into small egg-sized pieces and flatten to about an inch thick (kofta).

Grill or dry-fry on both sides until golden and crisp and serve with salad and bread.

Frequently Asked Questions

2005-09-29T18:24:00.000+03:00

There are many aspects of the property-buying process in Turkey that are, well, different from buying in the UK and Europe. For a start your sale is unlikely to be held up because the other party's solicitor in on a month-long holiday in the Seychelles and can't be contacted to review the sales contract.

The buying process here is actually a lot simpler, but it is still different, and so we have compiled a list of useful answers to basic and not-so-basic questions that our customers have asked us. Take a look on our Turquoise Homes website for some of the answers: Turquoise Homes Frequently Asked Questions

Making the rental difference

2005-09-29T18:19:00.000+03:00

Many people ask me about rental potential of properties in Altinkum – how many rooms is ideal to get maximum rentals, in particular. I can honestly say... it doesn’t matter. Once again (and you’ll notice it’s a theme), it’s location that counts. And this time, not which country you’re in, or even which resort because we can take it as a given that you’ve already chosen Altinkum!

No, in this case location is about convenience. Think about what you look for when you’re going on holiday – you want to be able to stroll down to the beach in your sandals, without having to plan it as a major expedition. You want to be in a nice peaceful area where you know you can get a good night’s sleep, but only a short walk to the nearest nice bar and shops – ideally to the town centre itself. Quiet enough to be safe, but not quiet enough to be, you know, too quiet. Basically you want it all!

And that’s exactly what you sbould look for when buying a property in Altinkum for holiday lets. Once you’ve got that you will definitely find a market. Couples will want a one bedroom property, a small family will want a two bedroom, larger groups will want more rooms – but they will all want a good location. Yes, you will get higher rental for a larger property – but you will have to pay more for it in the first place. Maybe instead of one large property, think about two smaller ones – the rental income could be slightly more if you charge a minimum per property plus a certain amount per person.

The other two essential things to ensure good rental income? A swimming pool, and good marketing! The swimming pool is self-explanatory and the bigger the better. The marketing... well, we have customers with two apartments in Altinkum who make over £10,000 a year in rentals. They do this by spreading the net wide. They use our free service and advertise their property for rent on our website. They advertise in their local newspaper. They tell their friends. They tell their family. They tell their work colleagues. They put adverts in the newsagents round the corner. They use professional rental sites like www.glo-con.com and www.holiday-rentals.uk.com. The wider the net, the more fish you will catch and the expense is minimal. And if you have a good property, your guests will return year after year, and tell all their friends as well.

The golden touch – How to make the most of your second home

2005-09-29T18:08:00.000+03:00

Let’s get this straight – most people who buy a second home in another country would really like to know that some time in the future, it will be more than a just a great place to spend their holidays. After all, you can find a nice hotel in your chosen location and visit it for years and years before even coming close to laying out enough money to buy a property.

So why buy? Because putting money in bricks and mortar has always been one of the most certain ways to ensure a return on your investment. A well-built, spacious property in a good location has intrinsic value in its own right and its value will grow organically. As the cost of goods generally goes up year by year, so does the value of bricks and mortar. As long as you don’t buy in a bubble – when prices are so inflated that they are way beyond the actual value of what’s being sold – you can be sure when you buy property that you’ve chosen a good bank.

Of course, there are ways to maximise the amount of interest your money will earn in your property “bank” and it’s all about location, and on several different scales. Look for high growth potential. Sure, Marbella is a great place and property there has gone up in value a huge amount in the last 20 years. It has everything going for it – a marina where the millionaires hang out on their yachts, designer stores, immaculate beach front, posh restaurants, expensive hotels - you name it. Yes, I wish I’d bought property in Marbella 20 years ago too! Can’t afford it now... And that’s exactly the point. Look for the potential.

A lot of our customers did buy property in Spain 20 years ago, and now they’re coming to Turkey with the money they’ve made, wanting to make some more! They’ve seen the signs – a young market (foreigners have only been able to own property in their own names in Turkey since 2002), lots of new properties being built, increasing publicity in the press and on TV, and marked improvements in the public infrastructure – and want to repeat their success.

We also have a lot of customers who didn’t buy property in Spain 20 years ago. They’ve seen the signs too and this time they don’t want to miss out.

And these are the people that are choosing to buy property in Altinkum. What do they see in Altinkum? Potential. It’s an established resort, but a relatively new one. It’s got a tourist industry that’s getting stronger and stronger, particularly among families, who like the friendliness of the people, the beautiful sandy beaches and clean, shallow sea, the family-friendly restaurants and the nearby water park. Couples are flocking to Altinkum too – the relaxed atmosphere, the romantic seafront restaurants and the many historical attractions within a short distance all add to the appeal.

There’s been lots of investment in Altinkum recently too. New roads have been laid, traffic lights installed, the beachfront promenade has been paved, planted with palm trees, lights and these clever gadgets that flash up the time and the temperature so you can boast to your friends at home how how it is. And there’s more to come. There’s already a harbour but the Turkish government has given planning permission and a grant for – yes – a marina. Here come the yachts now, I can see them on the horizon... And there’s that golf course too. It hasn’t been built yet. We don’t even know where it will be exactly – but it’s coming.

And geographically there’s more potential here than some of the other popular resorts in Turkey. Most of them are hemmed in by mountains and so they have already reached capacity. The big money’s been made, you’re too late. Why? Well imagine a skyscraper for a moment, a big tall one, 100 floors, made of money.This could be your money. Each floor between you and the top of the skyscraper is money you can make when you buy your property. Do you want to start on floor 99 and make one floor’s worth of money, putting 99 floors in yourself? Or would you rather start on the first floor and make 99 floors’ worth of money?

So do your research and look for the clues – recent government investment in an area, popularity with tourists, and of course, a dead giveaway, number of estate agencies marketing property in the area! And once you’ve done your research, move quickly to get the maximum benefit from your investment.

Fair Trade - Turquoise Homes joins the Turkish Property Code

2005-07-05T18:58:00.000+03:00

Here at Turquoise Homes we are proud of our reputation for ethical practice, and that the vast majority of our new customers contact us because we have been recommended by people who have bought property from us in the past. There's a bit of a running joke that our office is actually a coffee shop (or a dating agency!) in disguise because so many our customers drop in for a coffee and a chat long after they have the keys for their property!

We're proud of that and we were even more proud last month when we were invited to join The Turkish Property Code, an independent body set up to regulate the estate agency business in Turkey. They work hard to look after buyers of property and publish a list of guidelines their members have to adhere to - and it's all about ethical behaviour and telling the truth! Whoever thought estate agencies would voluntarily agree to behave ethically?! Well as William Blake said, "what is now true was once only imagined", and stranger things have happened (although admittedly not very often).

We think it's a great idea anyway, and welcome anything that makes buying property in Turkey easier and safer for everyone.

Altinkum Property - It's Time To Start Living The Life You've Imagined

2005-06-26T19:18:00.000+03:00

This quotation, attributed to the American author, Henry James, captures perfectly the mood among property buyers in Altinkum, Turkey. James would have been intrigued by the excitement rushing through this Aegean resort - an excitement that started in 2002 with the change in laws allowing foreign nationals to own property in Turkey in their own names, and now fuelled by intense interest from the British media and the experiences of early investors.

Until a few years ago, Altinkum was purely a holiday town. An arc of golden sand running gently down into a turquoise sea, so perfectly clear that in the shallows, the fish skimming around a bather's feet appear to be swimming in glass. A beachfront lined with small bars selling typical Turkish food and international favourites, a small central square with stalls of trinkets for souvenir hunters, and one nightclub summed up the total of Altinkum's tourist facilities.

Now property is the main industry of Altinkum, and the once minor resort in Turkey has become an investor's dream. Specialist magazines like A Place In The Sun and Homes Overseas have featured articles on the Altinkum gold rush, and the property boom has even caught the attention of the national press and television stations with news stories and TV programmes hailing Turkey as the next Spain and Altinkum as the new Marbella.

The Altinkum locals have responded in kind, ploughing billions of lira into regenerating the area. The main highway into the resort is now a tree-lined boulevard, with flower beds lining the pavements. Along the main beach runs a paved promenade studded with palm trees, and a marina and golf course will complete the transition from dusty town to cosmopolitan resort.

The local investment is seeing a major return. Apartments and villas are realising a year-on-year increase of as much as 30 percent, and two bedroom apartments which were available in 2000 for £6,000 are now asking upwards of £25,000. The area has seen its first sale of a single property over £200,000, and while this is still remarkably cheap to European eyes, it marks a major achievement for Altinkum, posting its entrance into the same league as Bodrum and Fethiye, which have been established property hotspots for many years.

Altinkum’s future is assured. The once-seasonal holiday town, deserted in winter by all but a few, now has a wealth of full-time expat residents. The more confident restaurateurs are staying too, providing excellent food and a place to meet throughout the winter. The biggest hotel in Altinkum held its first New Year’s Eve party this year, and next year promises a yet larger crowd to please as more and more buyers take the plunge and choose Turkey for Christmas.

Investment News – A-Day Reform to UK Pensions Allows Investment in Residential Property, & Good News for Business Owners & Expats

2005-06-20T18:48:00.000+03:00

New legislation being brought in on 6th April that revolutionises what can be done with your pension. No longer will you be restricted to buying an annuity - Sam Dunn asks if new incentives to encourage us to save more will head off Britain's looming pension crisis

Any light that pierces the gloom enveloping the distant horizon of our pension provision is desperately needed.…But soon we should be able to see more clearly. The first shaft of light should penetrate the clouds in the autumn when Adair Turner, chairman of the Pensions Commission, reports back with recommendations likely to include higher taxes, a later retirement age or more generous savings incentives.

The second is A-Day, 6 April 2006 - the date of a radical revamp of pension rules…From 6 April next year, … savers opting for a self-invested personal pension (Sipp) will be able to use it to invest in residential property - whether a buy-to-let, a holiday home or even their own house.
In the latter case, details have yet to be finalised, but Tom McPhail, pensions specialist at independent financial adviser Hargreaves Lansdown, says it might work like this.

An individual with a sizeable pension pot (say, £400,000), but who plans to work for another 10 years, cashes it in to buy a house. He then pays rent to live there and the money feeds back into his very own Sipp scheme, increasing the value of it tax-free for as long as he's resident. When he's ready to retire, the property can be sold for cash that in turn buys a smaller home and an annuity.… It is anticipated that properties inside the fund will be free of tax on rental income and capital gains and would also be immune from inheritance tax after 75 as they remain part of the pension fund, making this a very appealing option indeed.

Additionally the amount available to borrow to purchase for this purpose will be up to 50% of the fund.

John Howell, senior partner at solicitors John Howell and Co, cautioned: "If SIPPs investment is done properly then it has great potential. The tax breaks are fantastic and it is a huge opportunity to use existing funds to buy residential and overseas property.”

Additional changes in the legislation mean that anyone will be able to make contributions to a UK pension scheme, regardless of where or for how long they are resident. This means that UK expats will be able to continue to contribute to their UK pensions.

Company directors and business owners can also benefit from the changes. Under current rules business owners who have not used up their pension allowance in previous tax years can make extra contributions to an executive pension plan (EPP).

Suppose you started a company in 1986, but haven’t made any contributions. By setting up an EPP now you can claim years of service right back to 1986. This entitles you to generous levels of tax-free cash, provided the contributions are made before A-Day.

Current rules allow the whole value of an EPP to be paid tax-free as long as the value of the fund is less than three-tenths of final pay, multiplied by the number of years worked.

So if you have 20 years of service and earn £100,000 in the year before retirement, you can take £75,000 tax-free.

Adrian Boulding of Legal & General, said: “Provided this amount of contribution has been made to an EPP before A-Day, the tax-free cash entitlement can be preserved under the new regime.
“For many business owners this is too good an opportunity to pass up.”

Sources:
A-Day Reform to UK Pensions Allows Investment in Residential Property: The Independent Online Edition, 1st May 2005; www.taxationweb.co.uk; www.myfinances.co.uk; Get Ready For Pensions A-Day: Times Online, 22nd May 2005

Altinkum Real Estate Agency Certification

2005-06-15T18:56:00.000+03:00

Didim Chamber of Commerce has voted to introduce new legislation as a reaction to the massive numbers of new estate agencies that have followed property-hunters to Altinkum in droves. Concern has been raised about the need for some kind of control over the agents, many of whom have no formal training, experience or qualifications in the industry.

This new legislation requires all agencies to have a license to trade as estate agents, and to complete a certification course which covers public relations, deeds procedure, marketing and basic laws.

The Certification programme started on Monday 23rd May 2005 and 120 of Altinkum’s estimated 600 agencies attended. All agencies who do not complete the programme and qualify will be required to cease trading.

This new legislation is extremely good news for prospective property buyers who benefit from the reassurance of knowing they are dealing with a licensed member of Didim Chamber of Commerce.