People today are mainly focusing on several issues before they decide to buy a property in turkey.
Some of these issues are related to the property itself like: the original owner of the property, title deed validity, debt-free property, the title deed transfer process, well-constructed building, and earthquake resistance. In addition to other remarkable circumstances like political stability, economic growth, and how the country is responding to the covid-19 pandemic in 2021.
The demand to buy property in Turkey is increasing annually, especially when Turkey removed restrictions on foreign real estate buyers for about 190 countries except for Syria, Armenia, North Korea, Greek, and Cyprus. With the increased desire to buy real estate, foreigners are concerned about its credibility.
So here are some tips on how you can buy real estate safely and avoid property scams in turkey:
1- Construction companies:
Construction companies are not able to start any project, without applying first for the building permit license (Yapı Ruhsatı), issued by the local zoning and planning department. As a result, before you decide to purchase real estate in Turkey make sure the project has such a license and not built outside the legal zones or doesn’t adhere to building regulations.
2- The title deed
The title deed verifies the property owner and contains all details related to the property itself like location, type, and size. In order to find the original owner of the title deed and check whether the property is in a mortgage or has a debt, you should take the title deed copy of the related property to the Land Registry and Cadastre office (TKGM) where the property located, and inquire about it. Or you can send an email to [email protected] with a copy of the title deed.
3- Our OG team recommends you to do some research or consult knowledgeable people like us to collect information about a specific construction company or which construction
companies in the region are reliable. And it is preferable to contact a qualified and certified building inspector where the property located. Building inspectors are professional builders, surveyors, or architects who will provide you with a standard property report that indicates the real estate situation if it meets building code requirements and it can highlight significant repairs or costs that may be required in the future. As well as it can increase your negotiating power, potentially saving you thousands of Turkish liras.
The main objective of mandatory earthquake insurance (DASK) is to reduce the physical damage in case of an earthquake that you may face and may not be able to do on your own, so you can follow your life naturally after the earthquake.
Other topics foreign nationals take into consideration before purchasing real estate in turkey or live in it permanently:
5– Political instability:
The strained Turkey-US and Turkey-Europe relations directly affect the value of the Turkish lira to USD and Euro. Since the beginning of 2021 the volatility and devaluation of the Turkish lira TRY USD, – 29.20% and TRYEUR – 23.00% made real estate in Turkey in general and Istanbul and Ankara in specific seem like a bargain for foreign investors. On the other hand, a lot of people postpone their buying decision due to the currency’s volatility and the high exchange rates of currencies. But our financial advisors can help you in making the right selling or buying decisions to avoid any possible loss. And the cities where those foreign investors and buyers usually choose to buy in are Istanbul, Ankara, Izmir, Antalya, Bursa, Fethiye, etc. Such cities are very safe. While they stay away from cities that are boarded by countries with wars and conflicts.
6- Internal situation:
Turkish citizens are typically friendly, generous, and hardworking. That’s why you can barely see homeless, beggars, and poor people in the street, and you can walk in the mid-night with children. That would be totally safe.
7- Economic Growth:
Turkish authorities are striving hard to minimize the risk of investing in turkey for foreigners. Recently, Turkey increased its IR by 2 %, from 17% to an annual rate of 19%. The Central Banks implements monetary policy; An increase in interest rates is used to slow down inflation and protect the currency. And the growth of the economy with average annual GDP growth of 5.1% and the decrease in the supply of properties in Turkey compared to the demand can make it a good investment for real estate investors.
8- How Turkey deals with the pandemic (covid-19):
Turkey was responding quickly with testing, tracing, isolation, and movement restrictions. Like other rival countries, it is effective in reducing the virus spread. And the country continues with the vaccination campaign that started recently, and 69.30% of the country’s population is fully vaccinated.
Is there a need for a lawyer for the buying or selling process?
Turkish authorities do not require a lawyer to buy or sell real estate in turkey, but we recommend you to hire one because you may susceptible to fraud. So, our professional lawyers can have the responsibility to carry out official checks to ensure your real estate investment is guarded. They can check the property title deed and ensure there are no loans or mortgages against the property. And they are responsible too for issuance tax ID numbers and opening bank accounts and, overseeing the ownership transferring processes.
Is it safe to pay cash for a property in turkey?
Yes, purchasing a property with cash can benefit both the buyer and the seller with a faster closing process than with a mortgage loan. Cash payments also do not have the interest to pay and can mean lower closing costs. But make sure there is a paper trail that confirms the payment.
Finally, we can say that it is safe to buy a property in Turkey to settle down or to invest in it. Our OG team cares about you and will provide you with consulting and assistance to make the right decision, and help you during the transfer of ownership and after the purchasing process.