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How to buy an apartment in Turkey at the excavation stage
Date: 21.04.2024
Reading time: 10 min.
Views: 1,296Entering the world of real estate investing can be an exciting and, at times, challenging process, especially when it comes to buying property abroad. However, with the right knowledge and skills, you can make a successful investment that will bring you profits in the long run. In this article, we will look at how to buy an apartment in Turkey at the excavation stage - one of the earliest stages of construction.
Overview of the attractiveness of buying real estate in the early stages of construction in Turkey
Turkey is a country with a rich history, culture and beautiful climate, making it an attractive country for real estate investment. Buying property in the early stages of construction, especially at the excavation stage, can offer a number of advantages, including lower prices and the opportunity to personalize your new home.
For example, a 100 square meter apartment in a new building in Istanbul could cost around $150,000. However, if you decide to invest at the excavation stage, you could save up to 30% of that cost, which is about $45,000. This means that your initial investment would only amount to $105,000.
In addition, buying at the pre-construction stage gives you a unique opportunity to personalize your property by choosing the layout, finishes and other details. This can significantly increase the value of your property in the future and make it more attractive to potential buyers or tenants.
It is also worth considering that Turkey is a popular tourist destination and real estate here can be a great source of passive income. By renting out an apartment, you can expect an income of 5% to 7% of the property value per year, which is between $5,250 and $7,350 per year for our example.
In conclusion, buying a property at the excavation stage in Turkey is a great opportunity for investors who are willing to accept some risk and want to maximize their profits.
What is the "excavation stage"?
Excavation stage - is the initial phase of construction, when the land is cleared and prepared for construction. During this phase, the builders dig an excavation - a special depression that serves as a base for the future building. In this depression, the foundations and underground parts of the building, such as basements and parking lots, are installed.
Buying real estate at the excavation stage offers unique opportunities for investors. Firstly, this is the time when you can maximize the benefits of your investment, as prices at this stage are usually lower than at any other point in the construction process. This is because the developer needs funding to continue construction and is willing to offer lower prices to attract buyers.
Second, at the excavation stage, buyers have more influence over the construction process. For example, they can choose the materials, layout and other design aspects of their future property. This can add significant value to their investment, especially if they choose high-quality materials and modern design solutions.
However, it is worth remembering that buying at the excavation stage also involves risks. Construction can be delayed and there is a chance that the final quality of construction may not meet expectations. Therefore, it is important to work with reliable developers and conduct a thorough inspection before buying.
Benefits and risks
It is important to weigh everything when buying a property at the excavation stage benefits and risks. Here they are, presented in table form:
| Advantages | Risks |
|---|---|
| Lower prices: Prices at this stage of construction are usually lower, allowing investors to save money. | Delay in construction: Construction projects can encounter delays that can increase the time it takes to realize a return on your investment. |
| Personalization: Buying in the pre-construction stage gives you the opportunity to personalize your new home by choosing finishes, floor plans and other details. | Financial risks: If the real estate market drops, your property may be worth less than you paid for it. |
| Profit opportunity: If the real estate market goes up, you can sell your property after construction is completed at a higher price. | Quality problems: When buying at the excavation stage, it can be difficult to assess the quality of the final product. |
Keep in mind that each project is unique and the specific benefits and risks may vary. It is always advisable to obtain professional advice before deciding to purchase a property at an early stage of construction.
Legal aspects
Purchase of real estate There are a number of legal aspects to be considered in construction in Turkey. You will need a legal advisor to help you with the paperwork and make sure that all legal requirements are met.
Here are some of the key legal aspects to consider:
- Construction license: Make sure the builder has a valid construction license. This ensures that construction takes place in accordance with local laws and regulations.
- Land rights: Check that the developer owns the land on which the project is being built. This is important to avoid any legal problems in the future.
- Reservation agreement: This document records your purchase and should contain all important details such as price, payment schedule and completion date.
- Compliance with planning laws: Ensure that the project complies with all local planning laws and regulations. This may include restrictions on building height, distance to other properties, etc.
- Rights of foreign investors: In Turkey, foreign investors are free to buy real estate, but there are some restrictions for certain types of land such as military zones or cultural heritage zones. Make sure you fully understand your rights and obligations as a foreign investor.
In addition, it is important to consider that laws and regulations may vary from region to region in Turkey, so it is always advisable to consult with a local real estate lawyer before purchasing.
Financial considerations
When investing in real estate at the excavation stage in Turkey, you need to consider a number of financial factors.
Price of the object - the first and most obvious aspect. At the excavation stage, the price can be significantly lower, which makes this stage attractive to investors. However, in addition to the cost of the real estate itself, other costs associated with it should be taken into account.
Taxes - an important element to consider. In Turkey, property tax is about 0.1% of the value of the property for residential buildings and 0.2% for non-residential buildings.
Insurance - Another aspect to consider. Real estate insurance can protect you from unforeseen circumstances such as damage from earthquakes or other natural disasters.
Real estate services - is another cost item. This may include property management costs if you plan to rent it out, repair and maintenance costs, utilities, etc.
In Turkey, there are various options available to foreign nationals financial schemesincluding mortgages and installment payments. This can make buying a property more affordable, but it is important to consider that such schemes also include additional costs in the form of interest on the loan.
Important: It is always worth consulting an independent financial advisor before making a purchase decision. They will be able to help you assess all potential costs and risks and advise you on the most favorable financing terms.
Steps to purchase
Buying a property at the excavation stage in Turkey involves several steps:
- Object selection: Research the market and select a property that fits your needs and budget. Take into account not only the current value but also the potential profitability in the future.
- Legal review: Hire a legal advisor to check all documents and licenses. This is an important step to make sure the deal is legally sound and to avoid possible problems in the future.
- Contract signing: Once all inspections have been completed, you will sign a reservation agreement, which records your purchase and commits the builder to fulfill their obligations.
- Payment: You will make an advance payment and agree on a payment schedule. Make sure you understand all the terms of the contract, including possible penalties for early repayment.
- Transfer of ownership rights: Once the construction is complete, you will receive a tapu (certificate of ownership) for your new property. This is the last and important step that makes you the full owner of the property.
- After-sales service: After you buy a property, it is important to consider the costs of maintaining and managing it. You may need the services of an on-site management company or legal representative.
Beyond these basic steps, remember that every transaction is unique and may require additional steps or documents. Always consult with professionals and don't be afraid to ask questions.
Important points for buyers
There are a number of important points to consider when buying a property at the excavation stage. Here they are tabulated for your convenience:
| Points to consider | Explanation |
|---|---|
| Builder's reputation | Make sure the builder has a good reputation and experience in the real estate market. |
| Legal purity | Check all documents and licenses to make sure the deal is legally clean. |
| Construction quality | Ask to see the builder's other projects to gauge the quality of their work. |
| Location | Consider the location of the property. This affects the value of the property and its potential future profitability. |
| Financial conditions | Make sure you fully understand all the financial terms of the deal, including the payment schedule, taxes, and possible prepayment penalties. |
With these factors in mind, you will be able to make an informed choice and minimize the potential risks of buying a property at the excavation stage in Turkey.
Examples of successful projects
Turkey boasts many successful real estate projects at the excavation stage.
One of them is a residential complex in Antalya. This project was sold at the excavation stage at below market price, and after completion of construction its value increased by 30%. This allowed investors to make a significant profit.
Another example is a project in Istanbul where buyers at the excavation stage were able to personalize their apartments by choosing the layout and finishes. This allowed them to create the home of their dreams and also increased the value of their property.
In addition, the project on the coast of Bodrum is worth mentioning. Investors who bought real estate at the excavation stage were able to take advantage of a unique opportunity to choose the best plots with sea view. After the completion of construction, the value of these properties increased by more than 40%.
The project in the Fethiye area is also noteworthy. Here villas with individual swimming pools were sold at the excavation stage. After the completion of construction, the value of these villas increased by 35%, due to the unique design and high quality of construction.
These examples show that buying a property at the excavation stage in Turkey can be a profitable investment. However, as with any investment process, careful analysis and planning is important.
Buying real estate in Turkey at the excavation stage can be a profitable investment if you consider all the benefits and risks. It is important to do thorough research, consult experts and be prepared for possible delays in construction. Always remember that proper planning and caution is the key to a successful real estate purchase in the early stages of construction.
If you have additional questions or need help buying real estate in Turkey, don't hesitate to contact us
- This is a real estate investment at the very beginning of construction, when the foundation of the future building is just being prepared or dug.
- Low starting price, the possibility to choose and adapt the layout and finishes, the prospect of a significant increase in the value of the object upon completion of construction.
- Risks include delays in construction, possible changes in building plans and financial risks if market conditions change.
- It is necessary to select an object, check the legal cleanliness of the project, execute documents and make payment in accordance with the contract.
- Yes, it is important to engage a lawyer to verify all the documents and licenses of the builder and to guide you through the transaction.
- At the excavation stage, buyers often have the opportunity to make changes to the layout and choose finishing materials.
- It is important to evaluate the reputation and experience of the builder, as well as look at previous completed projects.
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