Buying a Property in Turkey
Buying properties in Turkey is quite reasonable for many foreigners when purchasing power is compared with other countries. This leads to great investments made by foreign investors to buy a property or lands. According to the official statistics, only in 2013, the amount of foreign-owned properties rose by 66% and this trend continues to move upwards every single year. As a foreigner, there are different elements that you need to consider before buying a property in Turkey.
It is good that the Turkish government applies minor regulations about foreigners’ property ownership. Foreigners can buy luxurious commonhold and flats in Turkey’s popular and classy regions. All you need to do is providing the required documents for the transfer of the full ownership. As in all countries, the property laws favor its citizens more than foreigners.
Does Period Affect Property Ownership in Turkey?
You can buy a property in Turkey with both short-term and long-term agreements. Long-term ownerships are far better for foreigners who are already living in Turkey. Most of the foreigners with long-term property agreements are usually working or operating a business in Turkey.
In addition to this, short-term property agreements can be useful for foreigners who are operating real estate business in their own country. This kind of business usually includes vacation resorts or rentals in Turkey. Since the nature of their business is seasonal, they have fewer things to stress out when compared to long-term property ownership.
Which Towns Should I Consider to Buy Property in Turkey?
The budget plays a great role in the property types to invest by foreigners. One of the main factors that affect property prices in Turkey is the geographical location. As in all around the world houses in the city center usually cost twice than the similar houses in rustic towns. There are a bunch of towns in Turkey, which are quite profitable to invest in the form of property rental or ownership.
Unlike the common misbelief, Istanbul is not the capital city of Turkey but surely it has more reputation. It owns branches of different well-known global organizations and franchises and this makes the city more favorable for many foreigners. Most of the residential properties in Istanbul are very close to amenities such as clubs, museums, art centers, and shopping malls. The city has many perks to give you a reason to buy an apartment in İstanbul.
Didim is one of the most popular tourist destinations in Turkey and unlike Istanbul, it is much quieter and smaller. It attracts a large number of foreigners every year but especially during the high season. If you are planning to invest in the Turkish real estate market for the first time then Didim can be a great choice to begin. The real estate prices in Didim are quite reasonable when compared to the other similar destinations. Though Didim is not as advanced as Istanbul, it is advanced enough to offer a decent lifestyle for its residents. You can find many lands available for purchase to lease or build since the town is still developing.
Bodrum is another great town which plenty of ethnic diversity. The majority of the population consists of foreigners who migrated to Turkey to live their lives to the fullest. There is an airport close to the town which is only 40 minutes away, and the town is full of condominiums, luxury resorts, and villas for holiday purposes.
There are other popular towns such as Antalya and Fethiye. These towns also include many vacation villas and houses. You can find the largest golf courses in Turkey in Antalya, which the city also has an airport. Fethiye is especially great for those who like to live a village life and it is famous with Blue Lagoon.
What Do You Need to Do to Buy Property in Turkey?
You have to prepare the required documents in advance before you buy a property in Turkey. Turkish government allows both its citizens and foreigners to buy and own properties in Turkey. But there are different rules apply for the foreigners’ property purchases.
As a foreigner, you are only allowed to buy a maximum of 30 hectares. You are not allowed to purchase any land or residential units which are located close to military zones. Moreover, it is not possible to own a property in areas where the foreign property ownership exceeds 10 percent.
It is possible to acquire a title deed after you comply with these regulations. It is advisable to be present during the title deed signing and witness the procedures. In case you will be unable to be present during the procedures then you can hire a property management company to carry out all of the title deed procedures on behalf of you.
To successfully carry out the title deed procedures, every foreigner property owner must have a Dask insurance. Dask is one of the insurance types that covers natural disasters such as earthquakes. Owner of the property renews his or her insurance annually by applying their property management office.
You can carry out the entire property buying procedures on your own in case you are going to move to Turkey. However, it is always better to receive professional assistance from property management agents.
These agents can carry out the entire title deed application procedures on behalf of you while they can also assist you in managing housing or land units. Moreover, you can receive assistance for the search for suitable properties for your needs which may be challenging for many foreigners due to the language.
Turkish property agents charge their clients with 3 percent commission which is calculated over the property value. The Turkish government has strict rules in this pricing and they capped this fee at a maximum of 3 percent. It is also possible to find different pricing in different rental agents.
Every property owner needs to pay a property tax in their purchase which is equal to 4.4 percent of the current market value of the land or property. This tax will be paid during the title reed application. In addition to these real estate attorneys will charge around 1200$ for the paperwork. In case you would like to carry out all of these procedures with the help of a lawyer, the pricing may vary.
There will be other additional fees such as retainers for booking the property on sale. However, you will not pay more than 500$ in total to these additional fees. Homes for sale in turkey are quite affordable when compared to the properties in Europe.