Table of Contents
Today’s question is divided into two main parts, namely, how do I buy a property in Turkey in terms of the correct steps and procedures, and the second is how to buy a property in Turkey that is suitable for my request in terms of location and specifications, today we will answer both parts in a clear and coordinated manner so that the customer does not need any external source to complete his information.
What are the steps for buying a property in Turkey?
- Communicate with a professional real estate broker and tell him the requirements you want with your expectations about the property that you can get within his budget allocated for this process.
- Coordination about the date of arrival and visit to the projects agreed upon with a real estate brokerage company.
- Reserving the appropriate property by paying approximately 1% of the total property value. This reservation gives the customer a period of up to two weeks to take the final decision to continue within the final price he obtained or change his mind, cancel the reservation and refund the amount paid for the reservation.
- When making sure that this property is the most suitable for the client, a sales contract is prepared in the project, in which all the details are explained, such as the price of the apartment, the method of payment, installments (if any), the apartment information in detail and the client’s information.
- After completing the cash payment process, the application is submitted to obtain the title deed. In the case of payment by installments, the title deed is obtained upon completion of the last installment. The guarantor of the customer’s right during this period is the sales contract.
- In the event that you wish to apply for Turkish citizenship (the value of the purchased real estate must be at least 250 thousand dollars), the lawyer of the real estate brokerage company or any lawyer will apply for Turkish citizenship, and the client, his wife and children under the age of 18 are entitled to obtain Turkish citizenship together.
What are the taxes on real estate in Turkey?
- Title deed tax is 4%
- The value added tax is for residential properties with an area of less than 150 square meters, net of 1%. For larger properties and commercial properties, it is 18%.
- Opening electricity, water, gas, etc. meters, and it is approximately $1,000
- The annual tax is 0.1% for residential properties and 0.2% for commercial properties
- Earthquake insurance tax is about $50 annually.
- Tax on profits if the client wants to sell his property within a period of less than 5 years.
The process is really that simple, but there are some clients who want to complicate it by communicating with dozens of brokerage companies, even if they got professional companies from the beginning and provided them with everything, and instead of understanding the areas, projects and opportunities offered, they focus on comparing prices based on originally incorrect bases and thus wasting For their time and the times of the companies they communicate with.
From here we will proceed to the second question in order to avoid what we have talked about now and to carry out the process in a proper and sequential manner
How do I buy a property in Turkey correctly?
Before you contact any real estate broker, you should specify the following points:
1- Is your goal of buying a residential or an investment property?
2- Are you interested in Turkish citizenship or not?
3- What is the budget allocated to purchase this property?
4- What are your expectations for the Turkish real estate market?
If you select the answer to the above questions, you will have already completed more than 60% of the process of purchasing the property correctly and correctly.
The residential property is suitable for your family’s requirements in terms of location and space. As for the investment property, the important thing is the return value and how you will get it.
If you are interested in Turkish citizenship, the property must be new and its value at least 250 thousand dollars (or a group of properties of the same value).
The budget allocated for buying the property is to direct the real estate consultant to the projects that suit your request and do not exceed your budget at the same time because Istanbul is a big city where real estate prices for two rooms and a hall start from 30 thousand dollars up to more than one million dollars.
Your expectations regarding the Turkish real estate market are important. If you expect to get a property with excellent finishing with a sea view, 3 rooms and a hall, close to the center of Istanbul, with a value of 100 thousand dollars, this is in fact not found in the real estate market in Istanbul, and you must choose another city or adjust expectations to suit the market.
And if your expectations regarding the investment are to get a return in dollars of 30% of the price of the property, then this is almost impossible in the real estate market, and you must realize in the investment not only the value of the return, but how you will get it.
After identifying these points, you can contact a professional real estate broker and you will get to know him through the following:
He will ask you about the above questions at first without sending him any ready-made offers that may not be suitable for your application.
- He will talk about areas, whether residential or investment, and will address economics, transportation and everything related to the process of buying a property to achieve a correct understanding of the area in which you are buying and the feasibility of investing in it or its eligibility for housing.
- He will have a website that contains useful information for those wishing to buy a property in Turkey, and it is not a new broker in the market trying his luck with customers.
- He will not focus on the cheapest prices instead he will talk about the real advantages of each property (prices are uniform for new projects)
- He will ask you when you will come to develop a plan to introduce you to the real estate market and the regions, and then the appropriate projects for your request.
- It will save your time and understand your request from the beginning and will not send you unnecessary information or fake offers just to get your attention.
- Upon your arrival, he will take you to the appropriate projects for you, and thus the process will be done professionally without wasting time.
- He will be keen not to transfer any amount of money to his company, but rather connect you directly with the real estate developer to ensure that you actually get the right and best price for the property.
- He will not focus on a specific project (unless it fits perfectly with your request) with the goal of his own interest.
- He will offer after-sales services to you during your first contact with you.
- He will answer all your questions fairly and accurately.
Things to be aware of when buying a property in Turkey
- A real estate broker who only has a price game and has the best prices in all of Turkey.
- A real estate broker does not have enough information about the areas and life in Turkey.
- A new real estate broker has not tried to live in Turkey for several years in order to form an experience that he conveys to clients.
- A real estate broker does not have a professional website that is rich in necessary information otherwise how will you be able to gauge the depth of his experience.
- A real estate broker asks you to transfer money to his own company and not directly to the seller.
- A real estate broker depends on appearances of office and cars and has poor information about Istanbul areas.
As for the steps of the process, we have talked about them above, and so we have talked about the correct way to buy a property in Turkey and the way to apply this method properly.