Mediterranean living doesn’t have to be expensive. In Turkey, you’ll find plenty of affordable housing options. Properties in Turkey are still affordable for foreigners. We are going to share a complete guideline of How to buy Property in Turkey. There are, however, several factors that one should consider before taking any action.
Ways of buy Property in Turkey
Visa and residency requirements
It’s important to note that buying a property doesn’t grant you residency or work permits in Turkey. You must still obtain your Foreigner Identity Number from TNP Foreigners’ Department if you do not have a residence permit.
Bureaucracy and paperwork
The Turkish Land Registry Directorates are authorized to handle a property transfer under Turkish law. Two types of deeds may have to be signed: a title deed and a land deed. These can be obtained after you receive your habitation certificate. Obtaining the habitation certificate is a time-consuming and complicated process. Therefore, it would be wise to consult with real estate agents who specialize in providing properties to foreign nationals.
Guide to the process
Follow these steps to ensure a successful and safe real estate investment deal:
- Do some research first. There are a lot of properties for sale in Turkey, and so are real estate agents. Choose one carefully. Consult someone you know who’s already bought a property in Turkey. They can recommend a few real estate agents. It would be best if you looked at all your options.
- Your real estate agent can get you the best deals if you build a good relationship with them.
- Next on your list is visiting Turkey. It’s important to know what the place is like, the neighborhoods, and the surroundings before purchasing. Visit Turkey to look at available properties.
- We define the price and terms of the deal, reserve the property, and lock in the price.
- Next, you will have to appoint a solicitor by power of attorney. That’ll save time.
- Finally, you’ve got to register your Turkish TAPU (title deed).
Turkey’s real estate agents and commissions
Usually, a real estate agent charges 4% of the property value. It’s a fair price so that you can negotiate.
The Title Deed
It costs 4 percent of the property value for a title deed or Turkish TAPU. It’s a legal document that transfers property ownership from one person to another.
Property registration procedures, like mortgages, happen through land registry offices. You have a few options for investing in Turkish real estate.
- Get financing from your developer. Developers often offer mortgage options for buyers. Downpayments start at 30-35 percent of the property’s value for 5 years.
- If the interest rate is low, you can take out a loan in your country.
- You can buy a house with a mortgage from a Turkish bank. Most Turkish banks offer foreigners 70 percent of the property’s value for 15 years.
Turkish Property Acquisition Restrictions for Foreigners
Turkey is easy to buy a house, but foreigners have some restrictions:
- Foreigners who want to buy a property in Turkey must belong to a country that Turkey permits.
- You can’t buy property in Security Zones and Military Forbidden Zones.
- There are only 30 hectares you can buy.
Is it possible to rent out my Turkish property?
You’ll find a good selection of high street and online letting agents. Turkey has good rental yields, and as a holiday destination, it’s high profile, so rather than hiring an expensive agent, try promoting the property yourself to your family and friends. Renting a property in peak season will have a higher income depending on many things like its location near the beach, its size, its amenities, and whether it is close to the beach. However, you can achieve a rental yield of 6% to 10% if you consider these facts.