INVESTMENT OPTIONS

PURCHASE OF REAL ESTATE

Foreigners (whether or not resident) may purchase land and property in Turkey in their own names provided that the properties/land are not in a restricted military zone.  This is checked by application to the land registry and is a requirement for all foreigners purchasing real estate in Turkey.  It is the responsibility of the seller to apply for this but the cost is met by the buyer and will be added on to the final payment on completion of the sale.  This permission is required even if you already own a house in Turkey as the search is done on the property not the person.  The requirement may be waived under certain circumstances, in which case the clearance is granted immediately. Otherwise the process adds 4-6 weeks to the purchase.

 In order to purchase the title deed (tapu in Turkish) of a property, an application has to be submitted to the local Land Registry Office responsible for the property. After carrying out necessary searches and checks, the transfer of the title is done by the Land Registry Office. During the transaction, the proofs or the documents concerning the transfer of the full purchase price into Turkey must be presented to the Land Registry Office.

Stamp duty is currently payable at the rate of 4% of the agreed sale price, divided equally between the purchaser and seller and is due and collected during the title deed transfer. However, it is increasingly  common practice in some areas to see a shifting of this payment entirely to the purchaser. This should be agreed in advance between the parties and stated in the contract.

 

BUYING LAND AND CONSTRUCTING A PROPERTY

KPC can assist and support clients who prefer  to buy a plot of land and build a bespoke property.  Our involvement means that even whilst you are not in Turkey the project will be overseen by our professional,  trustworthy  team.  

After securing your plot the next step is to sit with a design team (which we can help with) to decide what you want. Our team will help you to create a vision of your dream home using up to date architectural software. The unique construction process that we use allows you to create any style, whether it be modern or classic, on one two or three floors, with balconies and terraces. We pay particular attention to unusual shapes  or particular requests such as how many sockets you want in the every room, where placed etc . Dedicated builders will then begin to construct the house in accordance with your personalized building contract which details everything to do with the build: costs, materials, technical specifications, etc.  You can choose your kitchen, bathroom, tiles, appliances from the comfort of your own home or from our office using product samples and catalogues.

We can :-

  • Find a suitable plot

  • Arrange the purchase and negotiate on your behalf

  • Process government checks

  • Locate and help oversee a local architect

  • Gain the required Government approval

  • Complete the building from foundations through to décor, creating your finished home in accordance with your instructions subject to availability of materials and government requirements and regulations

BUYING OFF-PLAN

  • Buying off-plan requires you to enter into a contract to purchase a property prior to, or during the construction phase of the development. So there is no finished product for you to inspect unless there is already a show house.  Because you can't see exactly what you are buying, the contract is a more complex document, detailing the build and schedule. This is important for your protection.

There are some good reasons why you may consider buying off-plan. It’s possible of course that all of these reasons may not apply to your individual situation, but nonetheless here are some of the advantages.

  • The buying price is usually less than that of a finished property of the same type. When developers offer new products to the market they frequently start with lower prices to encourage a faster sales rate.  There is often about a 20% saving.

  • After construction commences, and the developer has met their construction finance requirements, prices usually rise. For investors who commit early to the project, there is often a good price incentive. Your property will be secured at today’s price, but often you do not have to settle and pay the final balance  for around 12 months. This means that you enjoy the benefit of any capital growth that occurs on the property even before it is completed.

  • While the deposit needs to be paid when the contract is signed, the balance of the purchase price does not have to be paid until some time later.   This means you get longer to arrange your finance.

  • One of the greatest benefits of buying off-plan is that you get to choose your property from everything that is available in the development; you can pick your location. The quicker you are, the greater the selection.

  • A wider array of choice means a greater opportunity to make sure you purchase an apartment/house with a superior position, aspect and floor layout. It’s quite common, for example, for penthouses, corner units, those with the best views and ground-floor apartments with private gardens to be sold first. This in turn, can offer better potential for capital growth and maximize rental yields.  You also may get the opportunity to have some input to the project and make requests to aspects of the final appearance, eg color of paint, kitchen units etc.

 

DISADVANTAGES OF BUYING OFF-PLAN

  • Just as with all forms of investing, buying off-plan does have some dangers. In particular, we emphasize paying close attention to building licenses already in place, current status of land, anticipated completion date of the whole site and not just your property, floor plans and floor area of your property etc.

 

Buying off-plan, provides the smart investor with substantial benefits. It can seem daunting when you can’t physically touch the end product. There are dangers as described, but rest assured that all of the properties we endorse are rated and not offered to our clients  unless they meet our strict criteria.