The Experiment of Buying a house in Istanbul

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The Experiment of Buying a house in Istanbul

Turkey is a beautiful tourist country that attracts millions of tourists every year from all over the world to enrich its beautiful historical monuments in addition to its picturesque nature and its advanced urban development.

If we talk about Istanbul, we are talking about an ancient historical city where the art of the ancestors met with modernity, which gave them a touch of beauty and beauty that is not easy to find anywhere else in the world.

Istanbul is characterized by the tourist would like to visit again and again every year and all seasons of the year because the details of beauty cannot be satisfied with one visit, no matter how long

Hence the idea of ​​purchasing a house in Istanbul to spend more time as a residence or work and for the reasons mentioned above, in addition to the facilities provided by the Turkish government to investors constantly to encourage them to invest

We have the following result: a nice place + good prices + government facilities = buy a house now, but a moment .. slow down There are a lot of important things that you should consider before you buy your home in Istanbul

Before we start with the tips that will help you buy your house correctly we will present some of the risks that the old investors have faced with the solutions

 

Risks

1-The Turkish lira is falling Against the US dollar:

Five years ago, the Turkish lira continues to fall against the US dollar as the dollar's five-year dollar exchange rate against the Turkish lira is 2 lira

Today, $ 1 = 4.5 Turkish lira, which is a big difference

And since most people buy their property by installments and therefore if we had a property worth 200 thousand Turkish liras was five years priced at $ 100 thousand dollars, but today the price is less than 50 thousand dollars (regardless of the price difference during the five years) and therefore who bought their properties In installments on the basis of the dollar, a larger sum of those who bought their property was paid in installments on the basis of the Turkish lira and we will clarify the most of this point with in the advice shortly

The solution to this problem is the real estate installment in Turkish lira instead of the dollar

 

2-New projects always offer better services and more favourable prices:

Yes, this problem arises very much, especially in the Turkish real estate market is very huge After the investor buys his property in a particular project at a price, a project is created services better and sometimes cheaper, causing remorse,

The solution to this problem is to rely on a long-standing real estate company with long experience in this field. It is always better to look for the company that represents the project and therefore the prices are the best

 

3-The sale to the Turks is at a lower price than foreign investors:

You can solve this problem in the same way as before, dealing with a real estate company with long experience and offering exclusive prices to both Turkish citizens and foreign investors

 

4-Economic and political problems in the country affected the real estate market

Yes, this is true for the past years and the coming years are very promising in the field of stability and progress of the economy as well as political stability

 

Tips and steps to buy a house in Turkey

 

1-set location

Locating the property is almost the most important and difficult step in the purchase process. There are a lot of details on this point:

Accommodation in the city centre is characterized as close to all services, transportation, universities, health centres and markets but prices are relatively high, and the level of luxury is average and high congestion

Accommodation on the outskirts of Istanbul is characterized by calm, clean air, reasonable prices and high luxury, but far from facilities, services and historical and tourist areas

Housing in non-Istanbul Turkish states is also characterized by tranquillity, luxury and low prices, but it will be far from Istanbul, Turkey's business and trade artery

And if we note the points above we find that each place the pros and cons, but sometimes the positives are much more than the negatives and this is what only companies that are able in the market to give you such opportunities ..

 

But at the beginning you have to determine the area where you want to live in. It is not a bad idea to rent a house in the same place you would like to buy to study the area better and make sure that all the transportation, services and facilities are available.

2-Watch out for the best real estate offers

The number of projects for sale in Istanbul is now more than 1200 projects whether under construction or ready for immediate housing and therefore when some real estate marketing companies offer you you have to be careful and the more attractive the offer the more attention you have

Usually, when a project starts, the prices are reduced to buy. This is true. However, as the project approaches, the prices start to rise to make more profits for the construction companies. This is, of course, if the project is successful. In the other case, there are problems with the project Facilities and services - the establishment of projects near the best ....) Here construction companies resort to provide large discounts in order to get rid of the housing units that remained in the project ..

So when you find that there is a project with great features and high discounts you have to study it well before you make a purchase decision

In addition, you have to know that most companies often offer their customers outside Turkey on troubled projects that are not sold as planned and you should not be surprised by how you can get the best real estate opportunity and you are thousands of kilometres from the project site!! And therefore, again emphasize the importance of dealing with good companies in real estate, even if the prices are cheaper, perhaps the quality is what these companies focus on when meeting the demands of customers and prices for the same project will talk about now

 

3-Check the prices

When you find the right project for you, do not be finished your work here, but you first make sure the price offered Is it really the market price or is it a price higher than the average market price

And to achieve this process

+ Use a real estate consulting firm

This method not only ensures the price of the property but also helps you to identify the pros and cons of the property you have chosen and compare it with neighbouring projects present and future You can get advice from these companies at reasonable prices

The most important is the use of companies with long experience in real estate in Turkey

And the point of confirmation of the real price is very important because it happened in the past that the project was exposed to selling high profits for marketers about 10% This project was published strongly outside Turkey and sold a lot of apartments within this project, but when the apartment owners received their apartments surprised that people Those who bought at first received a price as low as 50% of the price they bought

 

 

 

 

 

4-Taxes on the property

Taxes and expenses have two types of one-time payments and some of them are periodically paid monthly

For periodic expenses, these are the so-called proceeds and vary from one residential project to another according to the services that are provided and also calculated according to the area of ​​each apartment

For example, if the cost of the proceeds per square meter is 4 Turkish liras, the house is 100 square meters with monthly revenues of 400 Turkish liras

Other periodic expenditures are electricity, water, internet and gas bills (in some housing complexes, gas is not used but the electricity is fully used)

Fixed expenses:

Payment tax at purchase: 4% of the value of the total property paid by the seller and the buyer in equal shares

Profit tax: It is worth 20% but it is fortunate that the seller is paying it

VAT: It was a major drawback for investors but was abolished in 2017 by the Turkish government to encourage foreign investors to buy real estate in Turkey

Municipal Tax: It is paid once per year and is valued at 0.003% of the value per square meter (a small number)

Securing the construction of earthquakes

 

 

5-Do I pay installments or one payment?

Here there is no fixed answer to this question. It depends heavily on each case and its corresponding data

But be aware of the following:

Buying one lot or so-called casually always comes with a reduction on the price of the property ranging from 5% to 20% and thus the owner of his money in full gets paid cash on these rebates, but here the problem is the change in the exchange rate of the Turkish lira against the US dollar and often this change Is low

Thus, if we assume that we have property worth 100 thousand US dollars and the exchange rate of the Turkish lira against the US dollar every 1 $ = 3 Turkish lira and therefore the price of the property is 300 thousand Turkish lira (the property is priced in Turkish lira)

Now, after a period of time, the exchange rate of the dollar has changed against the Turkish lira

Each one $ = 4.5 Turkish liras and thus the price of the property (300 thousand Turkish lira) in fact 75 thousand US dollars instead of 100 thousand dollars and therefore one who bought a single payment got 10% discount, for example, but lost 25% difference exchange rate of the pound against the dollar

It should also be noted that the future of the Turkish lira against the dollar is not necessarily a decline and therefore no one has the science in this area and therefore say that it is entirely up to the buyer

As for installment, there is profitability in installments that may be installment in two years, five years or sometimes 20 years. We must not forget here that the more years of installment, the higher the price, the better it is to choose the number of years

6-Do I buy the property in Turkish lira or in US dollars?

It is worth noting here that if you intend to buy your property in one cash payment, there is no difference between payment in Turkish lira or the US dollar

As for the purchase of installments, here is the difference and as we talked at the top of the imposition of the Turkish lira continued to fall against the US dollar, it is better to buy your property in Turkish lira

But here we go back and recall that if you raise the Turkish lira against the US dollar, it would be better for you to pay in dollars instead of the lira

 

7-Do you buy the project under construction or ready to live immediately?

This also depends mainly on your intention to buy the property. If you are a tourist you want to live in for a short period during the year, it means that you are not in a hurry to buy a project under construction and benefit from the reduced prices in the first phase of the project offer for sale

But as mentioned in the previous steps the price is not everything, but you have to study the project well and identify the pros and cons of the site and services and near or after the airports and the city centre and everything that interests you

 

8-Do not forget to check the flat area

There are two ways to calculate spaces

  Gross The area of the apartment with the corridors connected to it

Net means the net number of useful meters within the apartment

Here you should pay attention when you buy was calculated in the first way gross and therefore the actual useful space of the apartment is less than agreed

Or is systematically calculated by the net and therefore all the meters will benefit you completely

 

9-See and check the Contract well

After relying on the appropriate property and when writing the contract you must read and understand accurately, there are some companies resort to prevent you from selling the property you bought from them throughout the construction of projects adjacent to your estate to ensure that it is the only offer in the market and this leaves you to keep the property without selling it I got a good buyer until this company makes its projects in the region

 

10-Be aware of the problems of non-completion of projects

We said at the top that buying an apartment under construction gives you the advantage of getting a discounted price, but here you have to beware of some projects that start with construction and depend on buyers' money to complete the construction, so this process is stalled. The construction stops and the longer the downtime the worse the reputation of the project and the company or the contractor responsible If you find the name of TOKI company is a strong government company and therefore if you find the contractor complete the project, this company is completed and therefore you can buy from the projects and you are a sinner

 

Additional Notes:

 

There are some methods to reduce the payment tax at the time of purchase (4% paid by the seller and the buyer equally), which is recording the price of the property less than it actually is at the municipality

If you decide to sell again, do not forget that you have to pay 20%, which is the profit tax. Therefore, if you register your property at a small price and when you sell, you will sell it at a high price. For the price recorded in the municipality) is high and therefore the tax will be 20% of high value

Projects with few housing units are the best in terms of calm and lack of consumption of facilities, but the projects with many residential units are often characterized by frequent services and the presence of many cafes and malls surrounding them

Be careful when buying from a person and not from a company that the property you buy is debt or under foreclosure

Taxes and fees start since you get a home license (taboo).

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