Buying a property is a big investment decision for many people. In order to make a right decision for a profitable investment, you need to know the basics about how, when and where to invest. In our article, we have shared some beneficial information to answer these questions. After reading this article, you will have a more clear opinion about how to buy a property in Turkey.
Why Buy a House in Turkey?
You might have friends who are living in Turkey and they bought a house. And you might wonder why buy a house in Turkey? Especially if you are a foreigner, the idea of investing in a foreign country might be scary at first. But increasing foreign real estate sales numbers prove to us that reality is far from being scary, at all! Turkish Statistics Institution recently published the most recent figures about this topic. And we analyzed these figures and. After the analysis, we published an article about the increasing number of house sales to foreigners, consequently. To find out more, you can read our article: Turkish Real Estate Sales To Foreigners Are At An All-Time High!
Are you worried? Don’t be!
Obviously, we all are concerned about the costs and benefits of any decision in our lives. You are definitely right in being extra careful. Especially when weighing your costs and benefits regarding financial decisions such as buying a real property. You should perhaps more than double your ordinary investigation effort to avoid any losses. And also to maximize your return on investment (ROI) in buying a real estate. Your main costs in buying a home are these three pillars:
- Initial dollar costs,
- Potential maintenance costs and
- The risks of owning a property.
Your main benefits will be:
- The title of your dream home,
- Increases in real estate prices (capital gains) and
- Rental revenue or opportunity cost of the house if you reside in it.
But these are common knowledge. So the real question is why buy a house in Turkey! There are convincing facts and figures to prove buying a house in Turkey is a good idea and an excellent investment. Let’s talk about it:
Firstly, Turkey offers highest ROI’s. Turkish real estate market is historically the worlds market with highest returns as of 2021 Q2 per OECD data. This gives you your first reason to buy a house in Turkey. Secondly, the right to apply for Turkish Citizenship of course is an important reason to invest in a Turkish real estate. With only a minimum real property investment of $250.000, you will be able to apply for Turkish Citizenship for you and your family. Thirdly, Turkish construction firms are well known to develop multiple real estate options to meet a variety of needs, which gives you multiple property options to pick from as a potential estate buyer. Multiple options of course in turn means no one will be hassling you to rush things against your will. You can always find a suitable home option without any pressures at your own convenience.
There is more to why you should invest in real estate in Turkey. To find out more, please read our article about “10 Reasons Why You Should Invest in Real Estate in Turkey.”
Is it A Good Idea to Invest Real Estate in Turkey?
If you would like to know more about why is it a good idea to invest real estate in Turkey, you can read our article “Is it Profitable to Buy a House in Turkey?”.
Where to Buy a House in Istanbul/Turkey
Apart from your personal location choices, it also matters because location directly affects housing prices and rents. Properties in some neighborhoods may be pricier whereas other neighborhoods may be more affordable.
There are many real estate options. And among them are the ones with central locations, locations with easy access to public transportation, quieter and farther locations, upscale locations, greener and spacious locations etc. More upscale neighborhoods may be pricier but may end up more profitable for investors. More affordable houses may also have their advantages.
Finding the right agent might release the burden
Housing market is never a one-size-fits-all type of market. Istanbul is an exhausting big metropolis city of 16 million people. And it is wiser to focus your energy in real estate options that suit you most. Your trusted realtor will be pleased to help you narrow your real property search. And also they will provide you the best options that will best suit your needs and preferences.
If you would like to know more about why is it a good idea to invest real estate in Turkey, you can read our article “What are The Best Locations to Buy a Property in Turkey?”.
Technical Details and Official Paperwork
Before you select your dream home, it is best to check permits. Check Property construction permit, and property residential permits to see whether they are in line with applicable laws. You can always inquire about the real estate builder. This inquiry should be about the quality of their homes in terms of longevity and its resistance to earthquakes. It is best to check whether the deal includes home appliances or not. The convenience of heating, electricity, and other available utilities are other things to consider.
Don’t be afraid of asking for help!
All these steps might seem scary. Your realtor will be with you all the way. And they will help you make property buying process as convenient as it can get. You will of course check the potential properties physically with the help of your realtor. This will give you an extra professional eye to spot any problems.
Priorization is cruticial
Preparation of a check list to cover most of your priorities may be the first step in easing your property search. You can easily prioritize your needs and wants and thus weigh your costs and benefits accordingly. This way, you can initially narrow your estate options and eliminate the ones that wouldn’t even suit you. Once you specify your target properties, you can grade and rank the ones that you physically inspect according to your own personal checklist. Following a wise and professional approach will help you have a calculated opinion on your real estate options before you make your final decision.
If you would like to know more about which procedures you need to follow, you can read our article “Procedures While Buying A Real Estate in Turkey”.
Are You Concerned about Scams?
Unfortunately, fraud and scam is part of our lives regardless of your country or industry. Swindlers may even use luxury offices and expensive cars to build a temporary trust. But this is until they lure you in for fraudulent scheme to take your cash and rip you off. They may sound professional and act as a team. You might face a scammer who is rushing you to make cash payments and justifies this unwise action as once in lifetime limited opportunity. At such cases, always remember that no opportunities are bigger than your peace of mind. When you are buying an estate in a country you are not familiar with, it is best to exercise all sorts of safety mechanisms for your own peace of mind.
Always look for proven safety measures
Accountability and transparency are universal values. These values will guide you if want to avoid any property rip offs. You should not drop your guard in your property search. And you should use every known protection method available. Although it is most unfortunate to have swindlers all over the world, we are also lucky to have proven safety measures. Thse measures include; vigilance, double checks, cross checks, random checks, physical inspections, personal visits, web search and neighborhood searches. Don’t be scared to see abundance of measures there are to employ, but instead be pleased to have so many security options. Your trusted realtor will be pleased to help you understand and use all potential safety measures. You may assign your power of attorney to a solicitor/lawyer so that they too will help protect your rights. It is wise to use all these measures considering both their costs and benefits.
Use proper inspection methods
After all, don’t let a few frauds or scams to discourage you and ruin your day. Although fraud is a universal fact, accountability is also a universal value. Proper inspection methods will give you all the assurances you may need in your property search in Turkey.
If you would like to know more about fraud and scams, you can read our article “How Can You Avoid Fraud & Scam While Buying a Property?”.
Guarantees, Reliability and Insurance
House insurance and mandatory-quake insurance are the two common form of estate insurances available at Turkish insurance agents. There are also technical details about the coverage of the optional house insurance. Although quake insurance is mandatory without much room for personal choices, your risk profile will determine the coverage of your house insurance contracts. Your realtor once again will be pleased to arrange your insurance on your behalf or get you to a reliable insurer if you like. If you have other concerns about your dream house, you can always contact your trusted realtor.
What Happens After You Buy Your Dream House?
Imagine that everything is in order and you purchased your house. After that, there will be a series of steps to follow to complete your residential registrations and setting up your utilities. These processes are straightforward for a Turkish speaking person. But it may annoy foreign investors especially if they are not yet accustomed to customs and regulations in Turkey. As your realtor and relocation experts, our service includes to help you arrange all these necessary steps. These required steps briefly are, registration to Municipalities, registration to Census Bureau, notifying your apartment or compound management, setting up utilities and arranging automatic payment orders, and learning about tax consequences of your potential rent revenues in Turkey.
If you perceive your realtor and/or your advisers as more than simple agents and develop lasting relationships, they will surely help you in your settlement in Turkey and make your transition seamless and as smooth as it can get.
- OECD data suggest that Turkish real estate market is historically the worlds market with highest returns
- With only a minimum real property investment of $250.000, you will be able to
- Turkish real estate market is a historically vibrant market and it is usually easy to resell your house whenever you like. Per Turkish Statistics Institute, approximately two thirds of every recent sale were older properties
- Your costs in buying a home are the initial dollar costs, potential maintenance costs and the risks of owning a property
- Your benefits will be the title of your dream home, increases in real estate prices (capital gains) and rental revenue
Tips To Bear In Mind
- Be extra careful when weighing your costs and benefits
- The most reliable form of investment for Turkish people is usually real estate investment to preserve once wealth apply for Turkish Citizenship for you and your family
- Turkey has a very developed real estate market with reliable real estate developers and realtors to rely on
- Turkish construction firms are well known to develop multiple real estate options to meet a variety of needs either in city centers or quieter towns
- Before you select your dream home, it is best to check the relevant paperwork and technical details to see whether they are in line with applicable laws
- Try to avoid rip any offs and fraud, by exercising proven safety measures such as vigilance, double checks, cross checks, random checks, physical inspections, personal visits, web search and neighborhood searches
- Keep your powder dry by avoiding unaccounted cash payments and abstain from signing a binding property contract before careful consideration
- Develop good rapport with your realtor; Realtors may be more than agents but also advisors and friends that you may always need in a new country
- After you buy your dream house, remember to complete your residential registrations and setting up your utilities
If you would like to discuss more about where is best to invest in real estate in Turkey for you, feel free to ask for an initial consulting session which is possible in person or online via WhatsApp, e-mail or send a message in our website.