Being Property Owner In Turkey
Turkey is a country that everyone wants to live with its geographical location, air, sea, sun, historic beauty, and nature.
If you have dreamed of a place you live a peaceful, happy and healthy life with long summer season all the time, beautiful beaches, historic beauty, sports and cultural activities, you can own property of high quality in Turkey with affordable prices.
When you compare property prices in Turkey with other countries of the world, you will see property prices in Turkey is in its infancy.
Turkey offers favorable living conditions for everyone with hot summers in the Mediterranean Region (7-8 months in summer), mild winters (average temperature 15 degrees), beach, sea, nature and mountain views.
Turkey has the 16th largest economy in the world with rapid growth economics. Turkey wants to be a member of the European Union for long years. These important developments leads European investments to head to Turkey.
Transportation is provided from all major cities in Europe to the Antalya Airport. Alanya district is the largest district of Antalya, and is growing very fast. Transportation to Alanya is much easier with the Gazipaşa Airport which became operational recently. These developments are the developments which are positive and facilitate rapid access for those who wants to own property in Turkey.
In 2008, the decision for allowing investors living in foreign countries to use credit is one of the important steps taken in the field of real estate. Thus, by using bank credits, you can make possible your dream of getting property in Turkey. Even when you do not stay in your property, you can gain additional revenue by providing weekly or monthly rent.
Even the biggest economic crisis in the world, Turkey has continued to grow in both economic and social fields. In periods of economic crisis, the number of tourists visiting Turkey has increased more than in previous years.
Real estate sector in Turkey, literally had its golden age in 2002 and 2007. It can be said that in the same years, the Turkey has advanced its popularity in 2008-2009 despite the crisis indexed to the U.S. housing loans. In this period, there is a significant revival in real estate sector with addition of low interest rates in our country and using the advantages of long-term credits. Revival in the real estate sector gained momentum with the lifting of visas between Turkey and neighboring countries has a great contribution in shaping the real estate sector.
As a result, the Turkey would be the logical choice to buy or to invest in property.
The Tapu (Tittle Deed)
A TAPU is an official document which shows you have ownership rights over the real estate. The owner’s full name and photograph, and detailed information on the asset appear on this document.
The TAPU has to be sealed with a stamp in the central part at the bottom and this section has to be signed by a TAPU officer.
The picture of all owners are to be suffixed to the top-right of the TAPU, it has to be sealed with a stamp and signed by the TAPU officer.
Whether a property does belong to a person can be checked through the pictures and names appearing on the TAPU. If the TAPU is a Xerox copy, then make sure it has been ratified by a notary public. Otherwise, a fake TAPU might have been handed over to you. With regards to the names, you can ask for the ID card of the seller(s) and compare the TAPU to the ID card in terms of names.
It is very wise to check your Tapu to make sure you own what you think you own. Check before you buy and also check when you recieve your Tapu, If you are not entirely sure what everything means this may help:
Buying Property in Turkey – The Process
Buying property in Turkey is a straight forward process, and often easier than in other European countries.
1. Once you have seen a property in Turkey that you would like to purchase you will need to find the deposit. This is payable by cash or credit card – Personal cheques are not accepted by banks here in Turkey. An initial payment of 10-20% of the property price is usually required. The exact figure will be confirmed individually with the house owner at the time of purchase. When this is paid a receipt is given.the amound received is written into the contract.
2. You will need to have your passport with you. Photographs are also required; your agent will be able to show you where the nearest place to get these done is. (approx £4 for 8 photos).
3. Then you should visit the Solicitor who will prepare the purchase contact. They are there there to help you. You are paying for their services so please use this time to ask any questions you may have.
4. Should you not be present in Turkey for the actual purchase of your property, you then need to go (your agent will accompany you) to the Notary’s office (similar to Notary public in the UK) to sign a document giving your agent power of Attorney for the property, not for money. This enables the agent to continue with obtaining the Title Deeds in your absence. Usually then you will return to the solicitors office, where the sale contract showing the property address and payment details will have been drawn up and be signed by you the purchaser(s) and your agent.
The initial stage has been completed and you do not need to be present for any more of the property purchase transaction. This process only takes a few hours.
You will be given the original contract and copy of the power of Attorney to take back home with you.
The same day or the next day your papers are forwarded to the Land Registry office for all documentation relating to the purchase is then forwarded to the Land Registration office in Izmir. Here everything is checked and then the title deeds ( TAPU ) are re-issued in the new owners name and forwarded back to the local Land Registration office who, in turn contact your agent. This process usually takes 6-8 weeks.
Your agent will advise you of this when it happens. At this time you will need to pay the final balance plus the 3% property tax.
Upon receipt of this we can then sign for and collect your TAPU from the Land Registration office on your behalf and this will then be held in the office pending your next visit and collection.
On top of the purchase price, are there any extra taxes or fees payable?
Yes, There are some extra costs.
• A 3% of the property value tax. This is a once off payment and it is due for payment once the TAPU is received.
• The solicitor’s fee. Prices start from about £200.00 pounds and will vary depending on which solicitor you choose to use.
• An approximate £100 Notaries Charge for giving us the Power of Attorney to handle the documents relating to the property in your absence.
• A 3% agency fee that covers all agents commision and charges. This is usually payable at the time that the contract is made, together with the initial deposit payment on the property but may be able to be negotiated in certain circumstances.
• It is compulsory to have earthquake insurance and we recommend you take out Full insurance home and contents cover as soon as the house is registered in your name.(the cost of this varies depending on the value of the property, it’s contents for the number of months it will be occupied.) Approximately £150
• The connection of Water and Electricity into your name so the bills will come directly to your house. Does not apply to some properties.
This is an idea of costs for the purchase of a property of € 50,000
Property price € 50,000, Tax @ 3% € 1,500, Solicitor € 500, Notary’s fee € 100, Agency Fee @ 3% € 1,500, Full insurance(incl. earthquake cover) € 150, Utility Connections € 180 TOTAL € 53,930
Once you have received your TAPU there are some other charges, which need to be paid. We estimate annual costs per property to be as follows:
Electricity € 120, Water / Sewage € 50, Gas € 25, Rubbish removal € 10, Site maintenance € 200, DigiTurk Satelite TV € 150, Council tax € 15 TOTAL € 570
It is not necessary to pay anyone to pay bills. Electric can be paid by automatic standing order once you have a bank account.
Water bills are intermittent and likewise your council tax can be paid when you visit annually.
The costs are correct at time of writing but are always subject to change. Variations will always occur due to location of purchase and other factors beyond the control of Property-Turkey.co.uk. This is intended as a guide only.
If you have any questions, do not hesitate to contact Kurt Safir.
HOW DO I FINANCE MY PROPERTY PURCHASE IN TURKEY?
You may have already decided on an area, but before you start looking for a home, it is important to consider the question of finance.
THE PRICE YOU CAN AFFORD WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING:
• How much you are able to borrow
• The period over which you intend to repay your mortgage
• Your existing mortgages, loans and other commitments.
Fill out our Mortgage form to get a decision in principle before you start even viewing properties….
HOW MUCH CAN I BORROW?
Your overall financial commitments (e.g. existing loans and other payments, including your new mortgage) should not exceed approximately one-third of your gross regular income. We recommend you keep some money in your Turkish current account to help you with your property costs, including upkeep, local taxes, electricity and/or gas bills and furnishings.
TYPE OF MORTGAGE
Rate Range: From 4% to 7% Fixed and variable rates
Maximum Age: Loan term to 75 th Birthday
Loan to Value: Ranges from 60% – 90%
Loan Duration: Maximum 20 years plus 5
Currency: GBP, EUR, USD, SFR, TRL
A valuation appraisal is carried out in most cases. However, it is important to note that this may vary slightly from the mortgage survey traditionally performed in your country. The appraisal is undertaken by an independent surveyor.
Whether you are looking to buy a second home, take up permanent residence, or take advantage of an investment we are here to offer
you the best financial solution. Our multilingual and multicultural advisors will explain how you can buy property in Turkey and obtain a mortgage as easily as possible. We will assist you throughout your home buying project, from the initial search for the best mortgage solution right up to the payment of your final instalment. We provide our services in English, Dutch, Italian and French.
With this particular International Buyers mortgage, you can use your Turkish property as collateral, so you can keep the equity on the property in your country of residence.
WHICH MORTGAGE IS BEST FOR ME?
VARIABLE RATE MORTGAGE
One of the main characteristics of our variable interest rate mortgages is that it offers you the comfort of stable monthly
As in euro zone countries, our variable interest rate mortgages are linked to the variations in the European Central Bank lending rate. However, monthly repayments will usually remain stable when interest rates change. It is the duration which varies according to whether rates have risen or fallen. Following complete release of the mortgage funds, our rates are reviewed quarterly or annually
depending on the type of mortgage you have. There are no redemption charges for early partial or complete repayment on our standard variable rate mortgage products and you can convert free of charge to a fixed rate mortgage at any time.
Even if you initially opt for a variable rate mortgage, you can still switch to a fixed rate at any time and at no cost, you can even combine a variable interest rate mortgage with an initial period of fixed rate.
Please fill out our Mortgage Decision in Principle Form to Apply for a Mortgage in Turkey
WHAT ABOUT BUILDING AND CONTENTS & NATURAL RISKS INSURANCE?
It is important that you make arrangements to insure the property and contents and that cover is adequate. Natural
risks insurance (DASK) is also mandatory in Turkey.
WHAT KIND OF HOME CAN I BUY?
Our International Buyers Mortgage provider is happy to consider mortgages for most types of residential homes, whether you
wish to purchase an older property or a new home, provided this home has been completed in line with the official plans.
Make sure this condition is fulfilled and get the property’s construction utilisation licence: YAPI KULLANMA IZIN
BELGESI, better known as ISKAN.