Investing in real estate in Turkey has become increasingly popular amongst foreign investors due to its affordability, strategic location, and high rental yields. However, buying real estate in a foreign country can be a daunting task. In this article, we will break down the process of buying real estate in Turkey and answer some frequently asked questions to help you make an informed decision.
Step 1: Decide on the Location and Type of Property
The first step in buying real estate in Turkey is to decide on the location and type of property you want to invest in. Turkey has many popular locations for real estate investment, including Istanbul, Antalya, Bodrum, and Fethiye, to name a few. Each location offers something unique, such as city life, beachfront properties, or historical landmarks.
Next, you need to consider the type of property you want to invest in. Do you want a villa, an apartment, or a commercial property? Each type of property has its advantages and disadvantages, and you must choose the one that aligns with your investment goals.
Step 2: Find a Real Estate Agent
The second step in buying real estate in Turkey is to find a reliable real estate agent. A reputable agent can guide you through the buying process, help you find the best properties that fit your investment goals, and ensure that the transaction is legal and secure.
You can find many real estate agents online or through referrals from friends, family, or colleagues. Make sure to choose a licensed agent who has experience and knowledge about the real estate market in Turkey.
Step 3: Conduct Due Diligence
Before making an offer, it is essential to conduct due diligence on the property and the seller. This includes verifying the legality of the property, its ownership, and any existing mortgages or liens.
Your real estate agent can help you with this step and connect you with a lawyer or notary public who can assist with the legal process.
Step 4: Make an Offer
After conducting due diligence, you are now ready to make an offer. Your real estate agent will help you negotiate the price with the seller and prepare a written offer in Turkish that includes all the terms and conditions of the sale.
In Turkey, it can take between three to six weeks to complete the legal process depending on the complexity of the sale, which includes acquiring a tax number, opening a bank account, and obtaining a certificate of ownership.
Step 5: Closing the Deal
Once the offer is accepted, you need to sign the contract, pay the agreed deposit, and obtain an appraisal report, which evaluates the property’s value. You can obtain a mortgage, but the process can be lengthy and complicated, and some banks may require you to have residency in Turkey.
After completing the legal process, including paying all taxes and fees, the seller will transfer ownership to you, and you will become the legal owner of the property.
Q: Can foreigners own property in Turkey?
A: Yes, foreigners can own property in Turkey. However, there are restrictions on the amount of land or property they can own, which is determined by the reciprocity principle between Turkey and the foreign country of the buyer.
Q: What is the cost of buying a property in Turkey?
A: The cost of buying property in Turkey includes the purchase price, real estate agent fees, taxes, and legal fees, which can vary depending on the location and type of property. It’s essential to budget for additional fees that may incur during the buying process, such as utility transfer fees and valuation fees.
Q: Are there any taxes to pay when buying a property in Turkey?
A: Yes, there are taxes when buying a property in Turkey. The buyer’s responsibility is to pay a title deed fee, which is approximately 4% of the property’s value, as well as a stamp duty of 0.948%.
Q: Can I get a mortgage in Turkey?
A: Yes, it is possible to get a mortgage in Turkey. However, the process can be lengthy and complicated, and some banks may require you to have residency in Turkey.
Q: Can I rent out my property in Turkey?
A: Yes, it is legal to rent out your property in Turkey, and many foreign investors take advantage of the high rental yields. It’s essential to hire a property management company to handle the rental process and comply with local rental laws and regulations.
Investing in real estate in Turkey can be a lucrative opportunity for foreign buyers. However, it’s essential to conduct thorough due diligence, work with a reliable real estate agent, and comply with local laws and regulations to ensure a secure and legal transaction. With proper planning and research, buying real estate in Turkey can offer a profitable investment opportunity and a chance to enjoy the country’s beauty, culture, and life.