Buying Property in Turkey
Turkey has an immense coastline, balmy Mediterranean climate and a wealth of opportunities for outdoor activity. Its people are also one of the most hospitable in the world. Hence it is hardly surprising that buying property in Turkey is becoming a firm favourite, and this trend is on the rise. Prices have risen by about 25% on an average in the recent past.
Turkey is not only attracting people on the lookout for a more varied lifestyle or those looking for a holiday home : large and serious property investors are also making an entry into Turkey’s booming property market. With property prices on par with Spain almost 20 years ago, it’s a natural choice for those looking for a long term investment judging by the amount of money that was made in that market.
Turkey is yet to become a member of the European Union; as a result, many investors are seeing a golden opportunity to buy property right now as they think the property boom will soon move from the popular European markets to Turkey.
With millions of pounds being spent on tourism by the Turkish government including five star hotels, new resorts, airports, marinas and golf courses, cheap & regular flights to all of Turkey's main airports and a record number of visitors in 2009, now is an excellent time to 'buy to rent' in most of the resorts along the coast or in the city of Istanbul.
Buying property in Turkey - the process
This is actually much simpler than in many European countries, and there is no difficulty in a foreigner buying property or even land in his own name. There are a few restrictions; you cannot purchase property in areas which are in the countryside and are not under the control of a municipal town or borough. The same restriction applies to military zones.
Our friendly and experienced sales manager will give you a guided tour of several areas along the Aegean or Mediterranean coasts, take you to various new developments and/or resales (depending on your requirements), and give you all the advice you need for buying property in Turkey.
The price that you pay may well differ according to season. There are some months in the year regarded as the best time to buy when prices are at their lowest, and taking advantage of early release prices by buying off plan can also keep costs down.
Once you have found your dream Turkish property and made an offer, you have to sign a contract of reservation. This effectually takes off the property from the market for a short period of time, say, 30 days, and you pay a holding deposit, usually around 3,000 euros. At this point an agreement is drawn up and you are given a copy of the Title to the property. You should decide at this time whether or not to go in for a survey of the property, and open a bank account in Turkey (most banks have internet banking in English, it is worth checking first). You will also need to register with the Turkish tax office to apply for a tax number. Your estate agent should help you with this.
When you are buying a property, always use an independent Turkish lawyer, for your conveyancing, preferably one that is not tied in to your agent on a commission basis, to ensure your sale goes smoothly. (Click on the link to get a free online quote)
Now your lawyer has to start making enquiries into the details of the property. He will do a title search, to make sure that the owner actually owns the property. He also has to check whether the property is clear of debts; whether the construction is legally sound; whether the sale contract is in correct English. After the checks are completed, you have to sign a preliminary purchase contract and a deposit has to be paid.
There may be a few more things your lawyer should look into; for example, a military investigation needs to be conducted in order to check if the property is not in a military zone or areas that are strategically important in terms of agriculture, energy, irrigation or protected habitats or areas that are deemed to have religious or cultural significance if you are buying a Turkish property, although this rule may soon be abolished. A company may have to be set up if, as a foreigner, you are buying land above 300,000 sq. metres (buying of land in Turkey is generally limited to 2.5 hectares for foreigners) or in an area that is designated to Turkish buyers only.
Continued - Guide to Buying property in Turkey >>
For more comprehensive advice, we have put together a selection of books that we feel would be of benefit to any potential purchaser - Buying property & Living in Turkey >>