Turkish Real Estate Guide - Tips for Buying Property in Turkey

Buying property in Turkey either for investment or for living is one of the greatest moves one can do for themselves. Prime Property Turkey offers a highly trained and qualified team that will take you all the way through the process, answering all your questions and guiding you based on your individual needs. Our everyday responsibility is to provide a transparent and top-notch customer experience for our clients. We do this by offering you the original names of the projects, as well as the exact location with an interactive google map. Additionally, we provide you with builder information and past performance. While this information should undoubtedly available across the market, it rarely is. We encourage you to ask questions and challenge all listings which seem embellished or fabricated. This is the only true way to have a transparent experience.  Last and certainly not least, we help you bargain for the best price, ensuring you walk away with the best deal possible. Your satisfaction is our main priority!

Given the current status of the TL, prospective buyers who hole Euro, GBP, and USD can experience significant savings compared to months past. 

What’s your Plan?

Knowing the purpose of your purchase is the single most fundamental step of the buying process of property in Turkey. Rather it be for investment, lifestyle, or a mix of the prior two, it is important to know the terms of payment and how you must pay and when you must do so. These basic details allow you to determine rather a cash payment or installment plan is best for you. These terms will be clearly provided to you both in the inquiry, negotiation, reservation, and final payment phases and documented several times along the way for your protection and security.  Please note: During the reservation process a 1% deposit must be paid; however, this is fully refundable up to 14 days.

Additional Costs

You should take note of all the expenses that you should pay on top of the property price. For example, there are one-time payments that include stamp duty and value-added tax. You should set up natural disaster insurance and also set up utility accounts. Also, consider monthly and annual costs such as maintenance and annual property tax.

Location and Area

One of the keys to a successful purchase is the importance of knowing the location where you wish to invest. As Prime Property Turkey, we provide you with an area guide and distances of amenities close to the property that you wish to buy. A map is also provided so that you can have an appreciation of the property’s actual location. Take time to compare the prices among surrounding locations so that you can identify the best deal on the property that you want to purchase.

A history and transformation of the neighborhood you are buying in is also important, as these are key indicators of how the area will progress over the next five to ten years. Remember the key to real estate investment is Location, Location, Location! Additionally, knowledge of the upcoming upgrades in the town you want to invest such as municipality infrastructure regeneration, metro stations, parks, shops, and schools can help you make a better investment or personal livability decision. Buying properties in designated regeneration zones also have greater potential for capital appreciation. 

Buying Online

In the past, it was necessary to visit the property in-person before purchase, but when the pandemic struck, online buying has become essential and in high-demand. Prime Property Turkey has a great track record of online selling. Customers across the globe are now opting to buy online because of the flawless process that is offered by the Prime Property Turkey sales team. From online viewings, video conferencing negotiations, and access of our own in-house legal team, we have you covered every step of the way. However, for those who must view the property themselves, our team will be ready for you to take you to view the various options in our pre-identified locations, following all the necessary local health precautions and protocols. 

Property Developer

Prime Property Turkey only works with established builders with a track record of success. You may not see some of the biggest names in the Turkish market, as bigger does not always mean better, and that certainly is the case in Turkey both with agencies and developers. This is a marketing business, so having the money to “build” a brand does not indicate the success you will have during the process. We only recommend builders who deliver on-time and without any changes in delivery quality. Our in-house legal team conducts routine permit reviews and building licensing to ensure our clients are buying in to projects that have conducted themselves in a fully legal matter. When we say a developer or project is safe, we mean it. 

Legality

If you do not wish to be in Turkey throughout the payment process of your property, you must issue a Power of Attorney (POA) to a lawyer that will represent you throughout the payment process. If you plan to move to Turkey as a Turkish citizen through the Citizenship by Investment program, the POA will be mandatory for the legal team to submit the application on your behalf. They also offer their services for title deed registration, submission of residency, and citizenship applications on behalf of the buyer and any family members included. They are also responsible for ordering an evaluation report. You can get the POA at Turkish embassies around the world or at the notary public office here in Turkey prior to your departure.

At Prime Property Turkey, our in-house lawyer will walk you through all the items mentioned to determine the best legal path forward for you and your family. 

Payment Plans

Payment plans may be a necessary option for some of our buyers, and in fact, can be more opportune depending on the circumstances. Though payment plans are a fantastic option, it is important to understand the terms and payment timeline. It is key that your relationship with the builder stays in good standing with proper payment and completion of the agreed upon terms. Additionally, discounts are typically offered when buyers are paying in cash, but that doesn’t mean that there may still be some negotiating room depending on the amount of the down-payment or length of payment conditions. Lastly, please check to see what the penalty terms are should you find yourself in a situation where payment is no longer possible. 

Return on Investment

Understand terms such as return on investment (ROI), Net Present Value (NPV), and Internal Rate of Return (IRR), as these will be tossed around quite a bit when discussing with your advisor. ROI refers to your annual rental returns and the percentage of which is earned, and your Capital Growth is the growth of value during the maturity of your ownership. Now, these are simple interpretations, but underlines the basics of acronyms and words used.

With that being said, buyers are different, so are their expectations as it pertains to ROI and Capital Growth. Understanding what your goals and ideals of a good investment are critical to your advisor’s overall ability to guide and assist properly. Some buyers prefer higher monthly income with lower capital growth, while others are looking to cash out once their property has risen to a certain value and are not to be bothered with the rental of their property. There is not an incorrect strategy, there is only incorrect communication. 

The Agency and Broker

Here is the quick disclaimer……Agencies that give you minimum choices to select from and those that push you to buy quickly in the one and only project that say is suitable, must be avoided!  

Always opt for buying with agencies who understand your needs, interests, and goals. A good advisor will provide you with information on the neighborhoods, demographics, realistic rental value, name of the project, exact location, catalogs, brochures, and real images to include off-plan projects. Those who fail to provide you with this basic information should be treated with caution. Find a buyer’s agent! We at Prime Property Turkey aim to break down these barriers and represent our client for the best buying solution in the market. Our track record backs this up, but there is only one way for you to find out. 

Project Visits

Please do not hesitate to visit the project sites so that you may know the progress or quality of the construction. Ask how long the construction has been going on and how long before completion. Compare with other projects in the area and ask your advisor this information to verify there is not an undisclosed reason for delay.  On the flip side, if the project is completed ask how long it has been completed and home many units remain. There are instances where sales were closed to foreign buyers hence the reason for large surplus, but when large quantities remain in older projects, one must ask themselves why.

Next, have a look at the services and facilities of each project and understand the cost associated with them. Not all projects have swimming pools, gyms, or indoor parking facilities. If this is something that you consider necessary, then please alert your advisor to these requirements to eliminate options that are not suitable.  

Developers continue to build new projects at a rapid pace though plentiful stock remains in Istanbul. Thus, consider all options to compare prices of the of both off-plan and completed options, as there is certainly a good deal to be had. Just may take some time to get there. 

Property Analysis

Ask your advisor for their own analysis on the property or properties you have selected. They should be able to clearly outline the projects growth viability, the investment quality, construction quality, livability and suitability to your requirements. Any advisor or agency which cannot provide these items are only doing you a disservice. Maybe they are new, so don’t be afraid to ask for a supervisor or director.

Once you receive the advisor’s analysis, you should conduct your own. Compare the options at hand to find the options most suitable and focus on 3-4 quite heavily. As focusing on multiple options at the same time can lead to confusion and mistrust. It is better to wait until your arrival and visitations here before switching directions and changing locations. As then you can witness with your own eyes and not be swayed by false information or guidance. It is your right to see multiple options, so please exercise this right and see what is available! 

Why PRIME PROPERTY TURKEY

“Doing it the right way”

Prime Property Turkey was created to meet an ever-growing need for a Turkish real estate company to simply do things the right way. We strive for the utmost transparency and communication throughout the purchase and after sales process, ensuring our clients have been taken care of to the level they deserve. The real estate decision is a difficult one, no matter where you are in the world. Our expertise and knowledge in the Turkish market will ensure each purchase, whether for holiday, full-time, or investment will be protected and valued. We here at Prime Property Turkey, strive to "do it the right way" every time we speak, meet, and buy.

If you plan to rent your property after purchase or list it locally, we are here for you. Contact us today for a free consultation.