The Turkish real estate market is in full flow with many Turks and foreigners buying property around the country. With an abundance of apartments and villas for sale in all areas of the country, buyers are tapping into a lucrative market with cheap prices that are modernizing itself by building new homes incorporating the latest in architectural trends and technology.
One area seeing much interest from potential buyers because of excellent prices is off-plan property. However before you consider this choice, what did you need to know about buying off-plan property in Turkey?
What is The Definition of Off-Plan Property?
In any property market, homes for sale fall into one of four categories. A renovation project is an old building in dire need of repair and renovation. A resale property refers to homes that have already had one or more owners.
A new home is one that has finished completion but had no earlier owner, while an off-plan property is still under construction. The significant difference between off-plan property and the other three categories is that off-plan property is uninhabitable.
Buyers of off-plan property are unable to move in straight away and may have to wait for a period of six months to two years before taking their title deeds. So, considering this disadvantage, why would anyone buy a home that they can’t live in?
For an excellent reason and that is the investment potential.
Benefits of Buying Off-Plan Property in Turkey
By far, the most significant advantage of the off-plan property is the financial gains. When an off-plan project is at the beginning of the construction stage, it is still a project in the making. Hence its value is low. As construction stages, advance and local officials approve and sign off on each step, the price increases until it hits full market value upon completion.
Early buyers of the off-plan property will see an increase in their investment at once, and flexible payment terms and conditions are staggered over a period of 6 to 36 months depending on the builder, unlike resale homes in which the seller requests full payment upfront.
Many buyers of the off-plan property also enjoy being able to personalize their home from scratch including choosing the bathroom and kitchen fittings to wall colors and laminate flooring.
Gone are the days when buying the off-plan property was a gamble into the size and how it looked. These days, architects and building firms use 3D technology to form artists' impressions as well as exact floor plans and layouts.
For anyone with a passion for interior décor and design, an off-plan home is a blank canvas to create a masterpiece.
But What Are The Risks?
As with any financial investment, there are risks but there are also legal steps to protect yourself if the construction doesn’t finish, or your home is delivered to you in lesser standard than promised.
The first step before you sign any contract or hand over a deposit is to investigate the reputation of the developer. This isn’t a time to support new start-ups or one-man companies looking for finance. Reputable developers have the backing of banks and don’t need to promise unrealistic terms to buyers to finance their projects.
Using the internet, it is easy to research a developer’s reputation, but here at Istanbul Homes, we prefer to keep our impeccable reputation intact by also vetting and verifying all properties for sale on our books.
We have a proven accomplishment record in the Turkish real estate market and only work with reputable builders. Along with our lawyer, we also check all paperwork related to off-plan projects, so our buyers are not facing unnecessary risks.
Secondly, now is the time to get everything and anything in writing. Keep all documents and transaction history such as lawyer and notary fees.
Also obtain a Senet, which under the Turkish commercial code is a promissory note. If the developer can not hand over your property as promised, it is enacted to recoup your losses through alternative assets of theirs.
We insist our buyers use lawyers and we always walk you through each stage of the purchase, so you are fully knowledgeable and in control of what’s happening.
Lastly, stay informed. Any reputable company selling off-plan property in Turkey will be happy to answer questions or send through construction photos if you are a foreign overseas buyer. We do this with all our clients and have successfully delivered all off-plan property to the client at the completion stage.
To find out more about buying off-plan property in Turkey, speak to one of our sales representatives by telephone, email, or call one of our offices.