Retire to Low Cost of Living in Turkey
Retiring to a place with a low cost of living is a significant consideration for many. Turkey stands out as an ideal destination, especially for those from Western countries. With its vast improvements over the last twenty years, Turkey has become a fierce competitor for potential retirees. It is an excellent place for new investments, thanks to its burgeoning tourism industry, affordable living costs, and openness to international buyers. Let's explore why Turkey is fast becoming a favorite spot to buy a second home, go on holiday, or retire.
Cheap Cost of Living in Turkey
Turkey is a gem for real estate investment due to its low real estate prices, favorable interest rates, profitable buy-to-let options, and a high resale market for investment properties. Since the markets opened to foreign investors, many cities have seen a rapid increase in foreign purchases, accelerating values in this emerging market. Predominantly, British, Russian, and German nationals are purchasing holiday and retirement homes along the Mediterranean and Aegean coasts of Turkey.
The prospect of European Union accession is also driving prices higher, as seen in other member countries. Many foreigners and citizens are purchasing property now while prices are still favorable. Turkey is constructing new high rises, commercial spaces, and beautiful villas with average starting prices of £50,000. This scenario benefits homebuyers because it is not a matter of if the EU invites Turkey but rather when. Knowing that investments will see a notable value increase once EU membership is finalized provides additional comfort.
Turkey offers a unique landscape surrounded by several seas and varied climates, giving many chances to choose a home that best fits your desires and budget. Homebuyers couple their perfect property with hobbies and activities, ensuring they thoroughly enjoy the retirement they always wanted.
- Day to Day Living
Turkey offers a cheap cost of living for retired expats who have moved overseas and bought a home in the sun. Like any other destination, purchasing costs vary across the country. In Turkey, Istanbul is the most expensive place to live. However, the Aegean and Mediterranean coasts offer many affordable destinations to consider. On average, a non-smoker, non-drinker, who doesn’t own a car and has no rent or mortgage to pay, can get by on 5000 lira a month. Of course, the more luxurious lifestyle you want, the higher the cost. There are also plenty of opportunities to save money, like shopping at the local weekly markets for fruit and vegetables instead of heading to the supermarket.
Turkey’s low cost of living is due to many factors. First, Turkey is still working to gain European Union membership; it is an outsider and not in the Eurozone. Additionally, Turkey still clings to its roots, focusing on local, family businesses and providers with fair prices. Turkey has thus far managed to avoid mega-providers who drive prices up when they arrive. Local and family-operated bakeries, eateries, and other necessities help ensure great prices and extraordinary value.
Do not worry about having to pick a small rural town to get these fantastic prices. Although there are higher initial purchase prices in Turkey’s main urban areas, many retirees are pleasantly surprised at how affordable real estate and living costs are.
- Cost of Living Comparisons: Turkey versus Spain
To understand the cost of living, we looked at Numbeo, a data-crunching base that collects the prices of items all over the world. We compared Istanbul and Madrid, and Numbeo currently says, “You would need 34,309.53TL in Madrid to maintain the same standard of life for 16,000.00TL in Istanbul.” This clearly shows it is cheaper to live in Turkey than in Spain. Additionally, non-working foreign residents are not taxed on their pensions.
Overall, the following pattern emerges: of all consumer and household items, Spain is significantly more expensive than Turkey except for alcohol and gas. For example, bread, property, and coke are almost three times as expensive to buy in Madrid, Spain, compared to Istanbul, Turkey.
- Making Your Money Go Further
Many expats in Turkey deposit large amounts of money into high-interest savings accounts. Then, after paying tax, they withdraw the interest monthly. For retirees who also receive a pension, this provides a high monthly income. Depending on the amount of money deposited, some expats build their net worth and never touch their capital. All high street banks offer these accounts, including Garanti and HSBC, so shop around to see who provides the best interest rates. Remember that interest rates fluctuate, so give some leeway when factoring this income into your monthly budget.
