What's the most important problem with buying property in Turkey?
Detailed information on all the problems of buying property in Turkey, and ways to overcome them through the first real estate adviser in Turkey; Imtilak Real Estate company.
What's the most important problem with buying property in Turkey?
Coinciding with Turkey's overall renaissance in various areas in the last two decades, attention is being paid to this influential country regionally and globally. The foreign and Arab real estate investment sector, particularly in the last decade, has seen a near-revolution in real estate, with only 45967 properties sold to foreigners in 2019.
Undoubtedly, with the high demand for real estate purchase and investment in Turkey, mistakes had to occur, during, during, or after the real estate transfer took place.
Table Of Contents
- What are the problems with buying the property in Turkey?
- How to overcome the problems of buying properties in Turkey?
What are the problems with buying the property in Turkey?
Imtilak Real Estate company ensures to draw your attention to the problems you may face while buying property in Turkey, our article highlights some of the most important problems with buying property in Turkey.
Real estate fraud and dealing with unreliable companies
One of the most notable problems occurring during the purchase of real estate are: Fraud and real estate fraud, while some scammers, and some companies that do not have credibility and confidence in real estate investment in Turkey, exploit the inexperience of those who wish to buy property in Turkey, the lack of adequate knowledge in Turkey's real estate market, the custom of sales and purchases, and the minimum and upper price limits; Some of the images of land fraud include:
- Some unreliable real estate marketers may offer a property for sale, without showing the buyer that the costs of investing and maintaining the property may be significant, when compared to the intended returns.
- The possibility that the property may not be systematically listed in the Land Registry, which means that the buyer will have fines and financial fees to regularize the status of the property.
- One of the most dangerous methods of real estate fraud is: a person impersonating the owner of the property, or the agent responsible for the sale of the property, and then falsify the documents - which only specialists can detect they are not official - after he or she has taken advantage of the absence of the real owner, or the official agent for the sale of the property, because of travel or for any other reason.
- Some real estate brokers resort to excessive prices that are disproportionate to the real value of the property offered, taking advantage of the buyer's lack of sufficient information on the prices traded in the area of the property offered for similar real estate.
Change in exchange rates and the value of the Turkish lira
One of the most worrying things to people who come to invest in real estate in Turkey is: the instability in the exchange of Turkish lira and the volatility of its circulation against major currencies, especially the dollar and the euro.
But that concern will soon emerge if we look at the location of the real estate market in the Turkish economy, where we will find it one of the most important sectors contributing to the country's economy. Turkey also has a strong economy that, despite having experienced multiple economic and political crises in recent years, these crises, however, do not have the effect of collapsing the economic sectors, as the economy is too small for movement to return as it used to be, perhaps because: the diversity of activities in the Turkish economy, not limited to a single pattern of economic action.
It is worth noting that, contrary to these concerns, some economic analysts go: The devaluation of the Turkish lira gives an opportunity to buy more properties. Especially since most investors come to Turkey and their savings are in foreign currency, which is a great opportunity for them to invest at this time, in Turkey's properties.
Lack of knowledge of the stages and steps of procurement and required documents
Perhaps the biggest problem for foreign investors, who want to buy properties in Turkey, is the lack of sufficient experience and knowledge of the steps to be followed during the search for a property, and then the steps to be taken to complete the purchase, registration of the new property within official restrictions; following due process in the Turkish real estate market and the official services responsible for conducting all transfer contracts and ensuring the integrity of all related transactions, the main steps in the acquisition of property in Turkey are as follows:
- After choosing the appropriate property, the tax number must be extracted from the tax service (vergi dairesi). The importance of the tax number stems from the fact that it is more like the buyer's official identity before the government services when conducting any legal or financial transaction whatsoever.
- The passport of the person wishing to purchase the property should then be translated into Turkish and the translation certified by the notary.
- If the property to be purchased is still under construction, a contract must be made between the buyer and the construction company. The contract contains the most important details relating to construction in the following order:
- Seller and buyer information 2. Date of delivery. 3. Materials used for construction. 4. Taxes and fees in case of delay.
Both the seller and the buyer must sign each page of the contract, thereby attaching copies of the plans matching the construction designs to be purchased, and then returning back to the notary where the contract is certified, in order to secure the buyer's rights after the sale.
- Then comes the transfer phase, which entails a tax of 4% of the value of the property registered in the estate, noting Turkey's custom of a transfer tax, or the so-called "brick tax," as the seller entails 50% of the tax, and the buyer pays 50% of it.
The foreigner does not have sufficient information about the Turkish real estate market
As a result of their lack of knowledge of the dealings of the Turkish real estate market, some foreign investors in the search for an appropriate mechanism for choosing the property they wish to purchase are forced to rely on the knowledge, friends, relatives, who have already purchased property in Turkey and invested in this area.
In principle: There is no problem in taking advantage of the views of the service close to the person wishing to buy, but the problem is if these persons have limited knowledge of Turkey, its economy, real estate and areas, or if their purpose of ownership is different from that of the person wishing to buy.
For more information, we’d recommend reading our article, in which we collected several tips when buying a property in Turkey.
How to overcome the problems of buying properties in Turkey?
Investors wishing to own a property in Turkey can benefit from the benefits they are given when owning a property in Turkey, such as: Acquisition of real estate residence in Turkey, or access to Turkish citizenship upon possession of property of a financial value of at least $250,000 or to enjoy housing in Turkey's beautiful environment, moderate climate or benefit from the active movement in the Turkish real estate market, with the aim of increasing profits through real estate investment of various kinds, whether long-term, short-term or tourism investment.
All those who wish to invest in real estate in Turkey can obtain it, avoiding the problems that arise during the purchase of real estate through the use of trusted and credible real estate experts at all stages of real estate investment. This is provided by Imtilak Real Estate company’s experts who provide solutions to the problems facing investors; these solutions have been the result of experience with thousands of investors in Turkey, as well as the strong reputation that Imtilak Real Estate company has.
Other important information and topics:
- Get to know more about residential building equipment in Turkey
- Living in Turkey - its costs, advantages and disadvantages
- Profitable real estate ideas and successful investment opportunities
Edited by Imtilak Real Estate
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