Buying real estate in Turkey: a review of the advantages of the country’s market
Buying real estate in Turkey is a profitable investment, and according to experts, this year the interest in the country’s market will be as high. The state has all necessary conditions to attract as much capital as possible. Here is a mild climate, diverse nature, which is suitable for tourism, the economy shows good results and is growing steadily. In addition, the cost of real estate in Turkey is quite low compared to the EU countries.
Another advantage of the local market is the quality of construction objects. The state clearly controls all stages of real estate construction, excluding risk to life in operation. Here unscrupulous developers are severely punished.
Before making a decision to buy real estate in Turkey, one should study some points. Important factors are the proximity of the object to the sea, area, number of storeys. If there is not enough money, then you can use the option of installments or apply for a loan. It is better to make a purchase through agencies, they know the local legislation, will pick up the object under your requirements, will take on all the paperwork. In addition, the buyer will be sure that he does not fall on the unscrupulous seller. It is desirable to choose reliable specialists who have been working in the real estate market for many years.
In the practice of Turkish agencies, introductory tours are quite common. Those wishing to purchase objects fly to the country and there the company organizes viewing of real estate for them, showing the benefits of different options. Such events help to attract potential clients for further cooperation. All flight and accommodation costs are covered by the agency or developer.
The tax system of Turkey has two types of duties – one-time and regular. Single tax must be paid when applying for TAPU, its amount is 4% of the cadastral value. Last year a new rule came into effect according to which it is necessary to conduct a special state expert examination of real estate sold to foreign citizens. This requirement allows for a comprehensive assessment of the building to minimize the risks for buyers.
There are several types of taxes to be paid each year. Owners of land plots and residential real estate should pay an amount equal to 0.1-0.2% of the value of the objects. Commercial buildings are subject to 0.2-0.4% tax, while 0.3-0.6% will have to be paid to owners of land plots under construction. The size of the rate is determined taking into account the type of object and its area.
In addition, annual state insurance is paid, which ranges from 15 to 150 euros.
In Turkey, widespread mortgage lending, which can be made for 5 years with an initial payment of 40-50%. Installments are given for 1 year, provided the first payment of 40-60% of the total value of the property.