Buying property in Turkey: new building and resale
The acquisition of real estate in Turkey today has become the most popular destination among Russians when it comes to investing in foreign square meters – while both new buildings and the secondary housing market are in demand.
Buying a home in the primary market
Buying property in Turkey at the construction stage today has become one of the most popular types of investments among foreign buyers – the price will be more affordable than if you invest in a finished object, and installment payment is longer. During construction, real estate in Turkey rises in price by 15-25%. After laying the foundation and building the frame, the developer submits an application to the cadastral office to divide the object into independent shares, that is, into apartments. As a rule, this happens when the property is 30-50% ready and after the developer receives TAPU for each apartment, he is ready to transfer the property to future owners.
As soon as the buyer decides on a specific apartment or house, a meeting is organized with the representative of the developer, owner or director of the company, where all the terms of the transaction are specified in detail, a sales contract is drawn up, where the final price is set, the payment schedule (if there is an interest-free installment plan, and it’s a common practice with developers,) the dates of delivery of the property are agreed upon, if it is under construction, special conditions and wishes of the buyer are entered and written according to the internal his design of the apartment. The document also indicates the rights and obligations of the parties, warranty obligations and penalties in case of delay in the construction period – the developer will be required to pay each overdue month.
Then during the week the first payment is made, comprising from 30% to 50% of the total cost of the object. According to the contract with the developer, even if the object is still under construction, the price is not subject to change. If the buyer for some reason refuses to buy, then he must pay penalties in the amount of 5-30% of the value of the object – here each developer has its own conditions and the amount of penalties.
After the entire amount has been paid for the object (payment can be made both in cash in the accounts of developers, and non-cash payment by bank transfer to the bank account of the developer), documents are submitted to the cadastral office to reissue ownership in the name of the buyer. Usually, the TAPU renewal procedure takes a maximum of 2-3 business days. After receiving TAPU, it is necessary to enter the data of the new owners in the local municipality (beyanname).
Then a technical passport for the apartment is drawn up (ferdi iskan) – as a rule, the presence of the buyer is not necessary for this, usually it is the developer himself or the real estate agency accompanying the transaction. However, it can be issued only if the house has an act of putting the building into operation (on iskana) – this is the main document that the developer should receive. The cost of this document is from 1200 (190 euros) to 1800 lira (290 euros).
After this, subscription agreements for the connection of water supply and electricity to the apartment take place. Many open bank accounts in Turkey and link automatic bills for electricity and water bills to their accounts. At cost, the average payment is about 1000 lire (160 euros) when buying a new building and 400 lira (64 euros) when buying a secondary property. The buyer can do all these procedures in person or through a formal power of attorney for a representative of the company or his agency.
Buying a home in the secondary market
Secondary real estate attracts several factors: price (often sale is urgent, therefore the price is minimal), housing is ready for living and does not require expenses associated with the purchase of furniture, household appliances and air conditioning, there is no risk of delayed construction or unfinished housing in principle. The truth is too “elderly” secondary housing has very worn furniture and appliances, and the implementation of the replacement is associated with additional investments.
There are pitfalls: it often happens that urgent sale is associated with the mortgage encumbrance of a given apartment and the amount of encumbrance can only be found in the cadastral office. Very cheap options for finished housing, as a rule, carry the risk of the absence of the most important commissioning document – iskana, without which it is impossible to legally draw up electricity and water meters. But the main point: today the secondary offers to pay the entire amount within 3-4 weeks maximum after making a deposit of any installments possible when buying a house under construction.