Maximos Real Estate Turkey has collected and answered the most frequently asked questions that investors and home buyers are mostly interested in.
1. What is the dynamic of property growth in Turkey?In the recent years, in spite of world financial crisis, real estate prices in Turkey have risen (annual property more expensive by an average of 10%). You should pay attention that the property growth index of real estate in Turkey depends on the region. For example, property prices in a touristic region like Antalya or in such megapolis like Istanbul with its rich infrastructure and luxury Residences, in 2014 has increased above 20%.
For more profitable investment and higher income it is better to purchase the property under construction, while the launch prices are 20-30% lower.
2. What are the charges for monthly maintenance? Is it expensive to own property in Turkey?Regular maintenance costs consist of an annual property tax, utility charges (electricity and water) and "aidat" - fees for maintenance of the Residence. Tax expenses depend on the size of the property and rarely exceed 50 euros per year. Water and electricity are paid by the meter counter. Electricity bills depend on the season: in the cold winter in January and February and the hottest July and August the usage of air conditioning units increases this cost, while in the rest of the time the costs are relatively low. The maintenance fee for the Residence (aydat) depends on many factors: the number of apartments inside the compound, hired personnel like security and caretaker, the internal infrastructure of the compound. Aidat can range from 10 to 200 euros a month, but usually in the range of 35-60 euros.
3. What is better to purchase: new or resale?Throughout the past 10 years, Turkey applies the requirements and rules of anti-seismic construction, allowing buildings to withstand earthquake loads of more than 7.5 on the Richter scale. State control is carried out at each stage of any construction. In addition, the construction of brand new buildings use modern materials and construction technology, allowing to save on home heating in the colder months. To avoid power cuts the majority of buildings are designed and built with an emergency generator. Buildings with earlier construction dates were built without the consideration of regulations and usage of modern materials.
This is why you should prefer property that is brand new.
4. Can i pay for the property in instalments/ get credit?
There are 2 types of credits that you can get in Turkey.
• credit given by the construction companies
The credit that is provided by the construction company doesn't require you any additional paperwork. The finance will be provided for properties covering usually 50-70% of the property price. Instalment payment will last 12-60 months with interest rate 0-10%. The payment depends on the construction company itself and the remaining time of construction of the building.
• loan from the Turkish bank
What concerns bank credit, you have to proof your income, the procedure of bank finance will not make any difficulty for a foreigner. You just need to have a valid passport and an income statement. If there are documents proving a good credit history in the other (including foreign) banks - it further simplifies the procedure. In average, the procedure of processing the loan takes no more than a week. The credit can be provided for 10 years and cover 40% of the property price with the interest rate of 12% per year.
5. Is it cheaper to buy property without real estate agency?There is a wonderful English proverb: "Cheapest is the dearest."
If you can fluently speak Turkish, have knowledge about purchase procedures, registration of real estate objects, know the Turkish legislation governing and land acquisition, construction requirements and registration of ownership of the completed and ongoing construction projects - you may well buy property on your own.
Otherwise there is a risk to buy a property that was built without permission, which would be difficult to use and even more difficult to sell. Even if you're lucky, and your new Turkish house will have all the relevant documents in the negotiations with the seller of property and registration of ownership, you can spend money for lawyer, interpreter and transportation expenses. Not to mention the wasted time and nerves. It is always better to use the help of professionals.
Moreover Maximos Real Estate provides all the services for free and you don't need to pay us the commission.