Risks of Buying a Property in Turkey

The demand for buying Turkey real estate has increased significantly, recently, due to the facilities that the Turkish government provides in addition to the temptations offered by the Turkish real estate market to investors in terms of large financial returns. In addition to the great development that Turkey is going through these days, in terms of economy, urbanization, infrastructure, tourism and other aspects, which made Turkey a safe and comfortable destination for living by all, especially after the outbreak of the Russian-Ukrainian war, which led to a gas cutoff in Europe and America and reluctance of the people of these countries, especially in winter, to Turkey, which was not affected by the gas cut like others.

What distinguishes Turkey from other countries in real estate investment?

1. The great facilities that the Turkish government provides to foreign investors on its land, in addition to the low taxes imposed on real estate investors and exemptions from them in some cases.
2. There is a large, increasing and continuous demand for buying or renting Turkey real estate, whether the property is new or old, due to the turnout that Turkey is currently witnessing from different nationalities, especially European, Russian and Ukrainian, who come to it either to live, work or study. Turkish people themselves migrate from their villages to major cities such as Istanbul, Ankara, Izmir, and Antalya for the same reasons.
3. The (ROI) in Turkey, is short-term, which means that the value of the property a few years later rises significantly; thus, the capital that was invested will increase.
4. The buying curve in the Turkey real estate market is always on the rise because the purchasing power in Turkey does not depend on foreigners, but rather on local citizens, who make about 93% of the Turkey real estate market.
5. The Turkish government does not require foreign investors to buy in certain places, so choosing the place that the investor wants is up to him.
6. The new global strategic projects that the Turkish government is working on, such as: the New Istanbul Canal and the huge investments that are about to be pumped in Turkey from Qatar, Saudi Arabia and China, which have made Turkey the first international investment destination these days.
7. Owning real estate in Turkey, in general, makes it easier to obtain Turkish citizenship within 90 days of purchasing the property, under certain conditions, which are:

• The value of the real estate should be $400,000 or more.
• The new owner of the property must undertake not to sell the property for at least 3 years.
• He should not belong to any terrorist party or organization.
• He should have reached the legal age.

Related articles:

• All information related to inheriting real estate in Turkey

• How to Get Turkish Citizenship With the Highest ROI Guarantee

• Company Incorporation in Turkey: For Foreigners

What are the risks that new investors in Turkey might face?

Inability to pay the property installments

Generally, investors usually have two ways when buying Turkey real estate, either paying in installments or paying in cash. Usually, the Turkey real estate market offers the option of installments in various ways, in order to attract investors. One of the most common fears that new investors feel when buying a property in installments is the fear of not being able to pay the property’s installments on time or according to the plan. The investor will have questions such as: What if he cannot pay the installments because he did not find a tenant for his apartment, or perhaps what if his current work stops or his funding source stops?

Therefore, the first piece of advice that we always present to our clients is to have a clear and detailed personal budget with all monthly expenses, because this will make everything clear to them, from the beginning. 

Secondly, it is better, if the investor decides to live in Turkey, to obtain health insurance before buying an apartment because unexpected medical costs can cause financial instability.

Moreover: Choose a payment plan that suits your income. You may have many offers and plans offered by construction companies in Turkey; here you should think carefully to choose the plan that will not put you in front of crises or closed doors in the future.

Also, you must have a (plan B) and a side fund for such situations, so that you do not suffer setbacks or failures.

You should also know that there are construction companies that provide facilities that would secure the options for you, and here we will return to the importance of consulting a real estate expert or a company when buying a property because it may avoid many future problems.

Finally, if you are worried about not finding a tenant in time, the solution is, once again, consulting a real estate company because it provides after-sales services, in terms of managing the property, finding a tenant, and following up on all other matters.

Fear of devaluation the property

It is sometimes difficult to know what the future may hold, but good planning may save the investor from many problems and obstacles during his investment. In general, Turkey real estate prices are constantly increasing, in the worst scenario, if prices are not rising, they are stable, because Turkey differs from other countries as the purchasing power of the real estate market depends on Turkish people, not on foreigners, as it makes 93% in front of 7% for foreigner buyers. In addition, Turkey is facing a major global economic boom, due to the huge economic and strategic projects that the Turkish government has announced recently. Also, the huge Qatari, Saudi and Chinese investment in Turkey, which was announced recently, has attracted foreign investors from all over the world to Turkey, which has led to an increase in real estate prices, especially in Istanbul, which is the country's economic capital. It is worth noting that real estate prices are constantly increasing since the announcement of these projects and investments.

On the other hand, the location of the property has a great importance in defining its price and value. The closer the location of the property is to public utilities such as public transportation, educational and medical centers, in addition to new government projects, the more its price increases.

In general, it is always better to use a real estate consulting company that will dispel all your concerns about real estate investment in any country you are, because these companies play the role of mediator between the investor and the construction companies by studying the market and real estate, based on the data that you give them, starting with the purpose of the purchase, the budget, legal procedures in the country, and others.

Restoration of the property

There are many options for the investor when buying a Turkey real estate, such as buying a new property, a property under construction, or buying an old property, renovating it, and then selling it again. Reselling can be a good way to make money from real estate, but it does come with some risks. Here are some things to keep in mind in this regard:

The investor must take into account the sums that he will have to pay to carry out the renovation of the property and prepare it for housing.

The investor must also be ready for the concept of large payments, in addition to that there may be some debts incurred on the property that transfer with the ownership of the property; so attention must be paid to that.

The investor must get to know this new market, which is important for any type of real estate investment, and it is also very necessary in terms of buying and renovating a property.

Do not overdo restoration and improvement, and do not exaggerate it. Always remember that you are not the one who will live there, and that what you are doing is just to attract as many buyers as possible. 

Get the help of experts, here, we will come back again to the importance of having an experienced real estate company or real estate agency.

Falling victim to fraud

Issues of fraud are endless when buying Turkey real estate, but it must be noted here that fraud exists everywhere and is not limited to Turkey only. However, we will present some of the ways in which new investors in Turkey can be defrauded:

• Impersonate the owner of the property. 
• The sold property must be seized or mortgaged.
• Selling a property for more than the real price.
• Exploiting the buyer's ignorance of the new laws and selling him an unsuitable property to obtain Turkish citizenship.
• Buying off-plan real estate: In this case, buyers may fall victim to fraud if the construction company is not known and reliable. You should know that there are many legal standards set by the Turkish government that are binding on construction companies to complete the construction process.

You can avoid any of the previous issues by consulting real estate companies with great experience and a high reputation in the field of real estate investment. Knowing that the Turkish government supports the work of real estate marketing and consulting companies in Turkey because of its great role in reducing fraud and facilitating buying and selling between investors and construction companies.

Tips for those who want to buy a property in Turkey.

Before thinking about buying a property, experts usually advise that you have a clear vision regarding what you want, and what is the goal of wanting to buy a property in Turkey. To get to this, you must answer the following questions:

• Do you want to buy a property for investment or to live in?
• Are you thinking of moving to Turkey after retirement and spending the rest of your life there?
• Are you looking for a summer vacation home near the beach and under the warm sun?
• Do you live in a hot country and would you like to buy a house to spend the winter and enjoy the snow?
• Have you got a work contract and want to buy a property close to your place of work?
• Do you prefer to live in a house or an apartment?
• Do you prefer sea views?
• Do you prefer to live in the countryside or the city?
• Are you trying to obtain Turkish citizenship by buying a property?
• Do you want to buy a property to obtain real estate residency?
• Do you have children and want to move to live in Turkey and enroll them in Turkish public schools?
• Do you want to buy a property because your son / daughter wants to study in a Turkish university?

Answering these questions will give you a very clear vision when buying a property. Here, you have put the foundation stone in terms of purpose, location, budget, and others. The answer to these questions will make it easier for you to choose the right city for you, the suitable apartment location, and the public utilities around, in addition to an approximate preconception of the price of the property.

After you have a clear vision about buying the right property for you, then comes the role of the real estate consulting and marketing company, which will facilitate the process of choosing the right property and seeing it on the ground and touring the Turkish cities, if you wish, until you get your choice. Consulting a real estate company will help you avoid many problems in the short and long term.

Among the most important services provided by real estate companies in Turkey:

• Real estate consulting service.
• Real estate tour in Turkish cities and states and between real estate projects.
• Informing you of the potential return on investment for any real estate, land or project you wish to invest in, in Turkey.
• Carrying out all the necessary legal procedures to buy a property and to obtain Turkish citizenship through real estate investment.

We are ready to answer all your inquiries, so do not hesitate to contact us via WhatsApp.