Purchasing an apartment in Turkey

My son wishes to buy an apartment in Turkey, but will not qualify for a mortgage. My house is not mortgaged and I would like to offer this property as a guarantee against my son's mortgage. Can I do this?

[asdfg]

Does your son qualify for a mortgage in his own right.

See here for things to be aware of when investing in Turkey. I'm sure there are others do a search.

[RainyDay]

Originally Posted by Tony Dodd

My son wishes to buy an apartment in Turkey, but will not qualify for a mortgage. My house is not mortgaged and I would like to offer this property as a guarantee against my son's mortgage. Can I do this?

Hi Tony - Are you really, really certain that you want to put your own home at risk to support your son's foreign investment. To be blunt, I think you'd be crazy to put your own home at risk in this way.

[ClubMan]

Does your son own his own home in Ireland already? If not then perhaps it would be more prudent to concentrate on that especially if he is planning to stay in Ireland for the forseeable future.

Yes, my son does qualify for a mortgage in his own right.

Originally Posted by asdfg

Does your son qualify for a mortgage in his own right.

See here for things to be aware of when investing in Turkey. I'm sure there are others do a search.

[ClubMan]

Why not let him go it alone so?

Originally Posted by ClubMan

Why not let him go it alone so?

He cannot get a mortgage in his own right, so needs a "sponsor" or "guarantor". He is anxious to get on the property ladder and cannot find anything within his price bracket/loan limit in Ireland.

[Aegean]

Originally Posted by YnotDo

He cannot get a mortgage in his own right, so needs a "sponsor" or "guarantor". He is anxious to get on the property ladder and cannot find anything within his price bracket/loan limit in Ireland.

If this post isn't dead I'll add my thoughts. I think your son qualifies as what is known as a 'fly-to-let' buyer. I think the question is the same as ever: what is the real purpose of the purchase? Will he be expecting a rental income, to cover the (guaranteed) mortgage and a capital appreciation which outstrips Irish prices so he can sell in a few years and buy in Ireland?

When you see it in black and white, it does appear to be a tall order. The Turkish market may deliver on the latter and if he holds the property for 4 or more years there will be no Turkish CGT but the rental income is dubious (based on my experience in the Bodrum market) - especially when there is no double taxation agreement as I write and his rental income would definetely be taxable in Turkey and Ireland if he continues to live in Ireland, I imagine.

[asdfg]

and if he holds the property for 4 or more years there will be no Turkish CGT

But he will be liable to CGT in Ireland @ 20%

and his rental income would definetely be taxable in Turkey and Ireland if he continues to live in Ireland, I imagine.

Tax on Profit on Rental Income is payable in both Ireland and Turkey

[bearishbull]

do you not only have to pay tax if money is remitted??? the son in the above question will lose first time buyer status so maybe father should buy in his name to preserve sons first time buyer status if he goes ahead with this investment.

[asdfg]

do you not only have to pay tax if money is remitted

No, Tax is payable in Ireland on world wide income

[bearishbull]

Originally Posted by asdfg

No, Tax is payable in Ireland on world wide income

i mean on cgt,i remember reading something about it but i think it relates to those who are not ordinarily resident in this country but living here.