Buying a property in Turkey in cash or in installments
One of the many questions we receive from our customers (which is better to buy real estate in installments or pay cash) in fact, this question we cannot answer in a few lines, as there are many details that you should know about each of the two options before you make the decision to buy any Of which.
Through the following article, the editorial team at Hana Real Estate will provide you with a set of information that interests you about installment properties and properties that are paid for in cash.
We wish you an enjoyable and useful reading.
Should I buy a property in Turkey in installments or in cash?
When you are in the process of buying and owning real estate in Turkey, there are a lot of questions that will come to your mind, whether the installment property is better or real estate in cash, and because of the importance of this topic, we will answer it in detail through the following paragraphs.
First, the main factor that determines this is the financial budget that you have. If you have a large and sufficient budget, it is likely that you will choose to pay in cash, and if your budget is not sufficient, you will choose to pay in installments.
Cases in which you choose to buy a property in installments:
We have a number of cases in which you may choose to buy this type of real estate, the most important of which are:
– If you do not have the full price of the property to pay in one payment, many people or investors choose to buy real estate in installments, even if the full price of the property is available to them. There are those who believe that it is not necessary to put all your money in one place only, and diversification is one of the reasons that lead you to wealth in investment. Or if he prefers to keep some of his savings in cash.
– If you have to find a home urgently and do not have time to wait, when you choose to buy a property in installments in Turkey, you can receive it directly and dispose of it directly after paying the first payment of the total property value without having to insure the full price.
– If you use the amount you have in other projects or investment businesses, a wide category of rich investors and money owners choose to buy a property or apartment in installments, despite having the full amount, but they may use it in other projects, and what should be noted here is that you do not put all the money you own in one place or project avoids you total loss in the event something happens that leads to the bankruptcy of the project and therefore you can buy more than one property in installments, as buying two properties in installments is better than placing all your capital in one property only, so you will not have frozen all what you own in one place.
– An important alternative to renting, you should know that buying a property in Turkey in installments is far better than having to live on rent, because eventually the property will become completely owned by you. Add to your information that you will not face difficulties in making the payments due to you because they are far apart and in the long run.
How to buy a property in installments in Turkey?
Now we have come to the most important question, which is how to buy this type of real estate or apartments in Turkey, or what exactly the steps to follow.
You are faced with two main possibilities to buy a property in Turkey in installments, the first of which is that the property is under construction and you buy directly through the creating company, and a contract is organized between it and the seller, in which all the agreed-upon items are included, but you have to bear in mind that you will have to wait for a while It takes a long time before you receive the property and this is one of the downsides to this option.
As for the second option for buying real estate in installments, you go to one of the banks that had previously purchased real estate from the construction company, but a mortgage sign will be placed on the property preventing you from disposing of it until all your payments are made.
It is worth noting that ready-made properties in installments are few, but this does not mean that they are not actually available.
But if you are wondering which of the two options is better, you should know that the bank gives you longer years to finish the installments, and therefore the interest rate that it takes is high. As for the construction companies, the installment period with them is less.
The most important advantages of buying installments in Turkey:
The advantages that the buyer will get when buying a property in installments in Turkey is what prompted him to take this step, the most important of which is that there is an abundance of installment offers, as construction companies offer many special offers in order to achieve a high percentage of real estate sales. And add to your information that you can obtain real estate residency if the property you purchased is intended for housing.
But if the price of the property is four hundred thousand US dollars or more, you will be able to apply for Turkish citizenship.
Also, you will not have to face financial pressures, as the price of the property will be paid over the long term, and you will not need to borrow.
One of the important pieces of information that you should know about installment properties in Turkey is that you must make sure that you can pay your installments at the specified or agreed time, otherwise you will be subject to fines.
Advantages of buying real estate for cash in Turkey:
Despite all the advantages that can be obtained when buying a property in Turkey in installments, many people and investors do not prefer this method of real estate ownership and choose to pay in cash, and below we will talk in detail and in full about all the advantages of this option.
1 – No need to think about paying installments:
Some people believe that they do not have to incur debts and installments that will not end before many months. Also, when paying in cash, the ownership will be transferred to the buyer directly, while when choosing installment offers, the ownership will not transfer until after the completion of all your payments.
2 – For many people it is safer:
When you choose to pay in cash, you do not need to think about managing the installments on time and you do not have to commit to this matter, and all your thinking will focus on how to start a new investment and buy another property.
3 – Take advantage of high discounts:
Paying in cash guarantees that you will get high discounts, as many construction companies offer high offers and discounts ranging between 10 and 20% of the total price, while if you choose one of the installment offers, the largest discount you can get is five percent.
Where do I look for real estate for sale in Turkey?
It cannot be disputed that all Turkish cities have many advantages and positive aspects, but if you follow the statistics issued by the Turkish Statistics Authority, you will find that Istanbul always ranks first as the best selling city for real estate and apartments, but the question here is which areas of Istanbul are better to own?
Your choice will vary according to the goal you seek to achieve, and the following is a summary of the most important ones:
1 – If you want to live with your family in a modern and upscale environment with all the necessities of life, you can choose Beylikdüzü, which is located on the European side of the city, or Avcilar.
2 – If you want to invest in real estate and get a high return, you should choose the areas that you like quickly and in which modern real estate projects such as Basaksehir, Sariyer and central areas in general are available.
3 – In order to have a high-end life, you have to choose Sisli, and when you are looking for cheap real estate, you can choose the Asian side of the city or rural or remote areas far from the city center.
Should I buy a property in Turkey at the moment?
It is natural to ask whether the current time is appropriate to buy real estate in Turkey or not. In the end, what matters is that it be an appropriate choice in order to achieve the goals you seek.
According to experts and specialists in the field of real estate in Turkey, the current period is undoubtedly the best for real estate ownership, especially if the goal is real estate investment, where a large profit can be obtained from it during the coming period after prices rise.
The most important conditions for real estate ownership in Turkey:
There are a set of conditions that must be met in order to be able to own real estate in Turkey, and through the following paragraph the most important information on this subject.
1 – Get to know the property owner personally and get the title deed of the property, which includes all the important information about it.
2 – Bring the buyer’s passport and a copy of it, translated into Turkish and certified by the notary public.
3 – Among the most important documents that must be among the papers are the real estate appraisal document, the earthquake insurance document, and personal photos.
4 – If you cannot attend in person to complete the sale, you can send a power of attorney to a trusted person to act on your behalf.
5 – Make sure that the property is not within the security or military areas, because a foreigner is not entitled to own property in those areas.
Are real estate prices in Turkey high?
Apart from the type of property that you will buy in Turkey, you must have sufficient information about the prices. Are they high or are they appropriate? Although it is rising significantly, it is considered cheap compared to the prices in European or American countries.
Through the following paragraph, you will learn about all the factors and influences that lead to an increase or decrease in real estate prices in Turkey, as this is one of the aspects that you should pay attention to so as not to pay a lot of money in the wrong place.
Property location and view:
The importance of the location of the property in determining its price cannot be hidden, and it must always be taken into consideration, as the more important it is, the higher its price. We have a set of directories that point to the distinguished site, which are:
– View of the property (sea, green spaces, or city streets).
– Are there any huge development projects near it (airports / water channels / bridges / tunnels) and others.
– If it is close to the famous historical and tourist attractions.
– Type of property (within a residential complex or in a separate building or whether it is a commercial property or a villa).
New or newly built properties are more expensive than old properties and add to your information that they are constantly increasing.
– The volume of demand for real estate:
One of the main factors that have a reflection on real estate prices in Turkey is the volume of purchase demand compared to the volume of supply, as the large demand will automatically lead to a decrease in the number of properties available for sale.
– Change in the value of the Turkish lira against foreign currencies.
– One of the reasons that led to the rise in real estate prices in Turkey is the presence of many important strategic projects that had a significant impact on real estate prices and led to their rise.
In the context of talking about buying a property in Turkey, we must point out a very important thing, which is that, whatever your choice, do not search for properties for sale without being accompanied by a real estate company with experience and knowledge in the Turkish real estate sector in order to provide you with the best opportunities at reasonable prices.
Hana Real Estate has provided you with everything you need to know about buying a property in Turkey in installments or in cash, and has provided you with a set of information and advice that you need in this field.
You can contact us to answer your various questions and help you provide what suits you of real estate and apartments, as the real estate market in Turkey is rich in various options.
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