Top 5 Mistakes Foreign Investors Make as New Home Buyer in Turkey

In this Blog, we will try to give you a few tips about common mistakes of foreign investors in Turkey.

1.This project for foreigners

Every year, 1.500.000 property sold out in Turkey.

40,000 property sold out to foreign investors.

So around %3 of Turkey Property Market is for foreign buyers.

None of developers aiming to sell only international investors.

2. I will visit once and then come back and get better deals

Some customers coming to Turkey then go back to think more to get best deals. But when they come again properties already became valued.

In Turkey there is %15 yearly inflation rate. So nothing will remain same price when you say i will come back and check next year.

Last year property prices increased avarage %30 . So definitely search before come to Turkey and buy when you visit.

3.International real estate agency companies more trustable

There are so many agencies in Turkey you can select for property purchase. And some of them has fancy offices and international partnerships.

But is it a good idea to deal with these kind of biggest companies. Definitely No.

Because biggest and international agencies working only dedicated areas and projects.

In Turkey for local companies normal commission rate %2 from buyer and %2 from seller.

But if you go any international agencies for example Chinese this rate goes up to %20 with exclusive aggreements.

So work with local company and try to figure out the area you deal another project prices.

4.Buying Cash instead of Installment

Citizenship by Investment you need to pay all amount Cash but as a investment opinion.

Don’t go for Cash pay %50 Down payment just wait min. 1 year then receive your passport.

Why is that ?

Because Turkish Lira develuating every year around %20-30 .

So if you put all your money cash even if you get %15 Cash Discount from list price it is not a good idea.

If you deal with Installment because of develuation you can get better deals after 1 or 2 years time period.

5. Buying Ready Project for Rent income instead of construction

Many investors buying property for rent income .

In Turkey rent income Approx. %4 Net for residence and apartments. %6 for Shops and commercials.

If you go more than this rate for rent guarentee it means that you are paying developer advance more money and with your own money you will get more rent income.

But imagine instead of buying for rent income in a promising project construction after 2-3 years delivery time.

Ok you will lose for max. 3 years around %12 from rent income but capital appreciation of construction project will be minimum doubled.

So after construction finished you will have brand new apartment and double price .

It is really good idea. But don’t go for construction small developers. Just search company background and contact with us now for best deals.

We are waiting for your kind visit to Turkey. All you need giving your flight number and our licensed agents will assist you and our law department will be with you from A to Z.

Thanks for watching.

 

 

 

 

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