Buying real estate in Turkey has become the first step that investors take when they come to Turkey, and not only investors, but also everyone who comes to Turkey with the intention of visiting or housing, and this was because of the availability of the possibility of buying real estate in Turkey in installments, which provides many and great advantages for those who buy, which in turn affects the real estate market in Turkey and the economic situation in it.
Advantages of buying real estate in installments:
Buying real estate in installments has many advantages, and the most important of these are:
-Supporting real estate business in the region:
The real estate movement is represented by the real estate market in the region, so allowing the purchase of real estate in installments means a greater demand for real estate in Turkey, and this means that the first beneficiary of this process are the many real estate owners who work in real estate investment, and this guarantees them selling a larger number of properties and with greater profits. But its price is paid in installments over a certain period of time, within legal procedures that guarantee the seller his right and protect him from being deceived, theft, or non-payment of the remaining installments.
-Possibility to buy for small capital owners:
Not all people always think about buying a property in Turkey, because of the much money required for this process, but after the purchase of real estate in installments was allowed, this process became possible for more people or those who buy a property in the region, and this affected the owners of small capitals who cannot buy a property in Turkey without paying the full amount in one go, but by paying installments from the price of this property with the possibility of paying the initial payment in a good amount and the rest of the installments are regular amounts specified in the contract clause.
-Possibility to buy for newcomers to Turkey:
Turkey is the land visited by large numbers of people as tourists, visitors and investors around the world, and these people are thinking of settling in Turkey after seeing the great features in it, and on their first visit they can register to buy a property in installments and pay an initial amount of the property price. This became possible after the facilities provided by the Turkish government in this area, and this helps to settle in Turkey and enjoy its beautiful atmosphere and terrain without the need for large capital in order to buy property in it.
-Facilitate obtaining Turkish citizenship:
Turkish citizenship is the first and most important requirement for visitors and those coming to Turkey, so the government has provided great facilities to obtain Turkish citizenship by buying a property in it with a number of conditions that must be met before the purchase is made, and in this aspect Turkey allowed the process of buying real estate in installments, this allowed large numbers of people to buy real estate in the region, and this was in order to obtain Turkish citizenship, which provides its owner with many advantages on the lands of Turkey and abroad.
-Supporting tourism in Turkey:
Tourism is an integral part of life in Turkey, due to the many tourist components present in it. Therefore, foreign tourists coming to it, need housing because of repeated visits, and this became available to them after allowing the purchase of real estate in installments, and not having to pay a large amount of money once. Rather, payment is made in installments for each period of time specified in the terms of the contract.
There are other advantages from the personal side of the buyer, which are:
-Pay the installments comfortably without putting pressure on the buyer.
-Living in the property and investing it before you pay the full price, thus saving time and effort in collecting money in order to pay the full amount of the property, were it not for the price installments.
-The buyer is not drowning in debts or his need to ask for money from multiple sources, but this ensures that the buyer organizes his expenses and saves an amount on a daily basis for the installments.
How to buy a property in installments in Turkey:
The purchase process takes place in several successive stages, which is the same as the stages of buying real estate without installments, but in addition to it there are some legal procedures necessary to ensure the right between the seller and the buyer. These legal procedures are personal guarantees provided by the buyer in the terms of the contract in order not to breach the contract and its terms. Therefore, the Turkish government has been keen on the existence of guarantees within the legal procedures surrounding the contract between the seller and the buyer and has attached great importance to this matter in the installment purchase process.
Points to be aware of when buying in installments:
There are several things that the buyer must pay close attention to while purchasing a property in installments in Turkey, and these points are what help the buyer to ensure the quality of the property:
-Ensure that you can pay the installments before you make the purchase.
-Ensure that the down payment is large in order to obtain benefits from the property owner.
-Stay away from borrowing and do not rely on it in the purchase process.
-Study the concluded contract well and in detail, and read all the terms that were put in place by the seller, so that the buyer is not deceived or violating the agreement made between them.
-Searching for a property in which the installment period is long until the process of paying the installments is done comfortably without pressure from the seller and thus not to be subject to fines.
-Pay the installments on time and don not be late, because this exposes you to financial fines that are added to the price of the property.
Types of installments in real estate:
Installment on real estate varies from one property to another according to its type and specifications, and the installment varies from one seller to another and according to the agreement, there are different offers on real estate in the region.
Installment on ready properties:
In this process, installments are made on ready-made properties that have been built before. In this type of real estate, the option of installments is a little more difficult, and the purchase process is divided into two parts:
Down payment: In this type of real estate, the down payment is not less than 40% of the entire property price, and the larger the down payment, the more discounts the buyer will receive. When the amount of the down payment exceeds 50%, the buyer receives significant discounts from the property owner or the real estate company concerned, compared to those who pay an initial payment less than that.
Installments: Installments vary from one real estate to other and this is related to the owner of the property or the real estate company responsible for the property. This period is limited between 5 to 7 years. These numbers are not a benchmark. The installment period depends on the terms of the contract that were agreed upon between the seller and the buyer.
Installment on properties under construction:
In this type of real estate, the buyer is booking one of the properties that is established by a certain real estate company or a property within a real estate project, which abounds in Istanbul, Ankara and other cities. Here, the buyer and the person in charge of the real estate project agree on the terms of the purchase contract.
1- payment: In this type of real estate, the down payment is less than in other real estate, and its value ranges up to 30% of the entire property value and varies from one property to another and from one residential project to another, according to the discounts and offers offered by the property owner or the real estate company.
2-Installments: The installments in this type of real estate are over a longer period. The installment period in real estate under construction may extend to ten years, which is a sufficient period for the buyer to pay all the installments due to him to purchase the property.
These properties greatly attract foreigners who want to buy a property in Turkey, where they choose a property within a real estate project and pay an initial amount of it as a down payment and the rest of the installments are paid on a monthly basis by many means.
Installment on real estate through a bank loan:
This type of installment is mediated by the bank. The bank buys the property instead of the investor or the buyer and registers all the papers of this property in the name of the buyer, and the property becomes his, but a mortgage sign is placed on it by the bank in order for the buyer to pay all installments to the bank.
1-The first payment: In this type of installment, the bank provides great facilities to the buyer in the payment process and does not require a specific value for the first payment, as it returns to the amount that is with the buyer.
2-Installments: When it comes to installments through a bank loan, this means safety and not being afraid of deception for both parties. The bank offers great facilities in this field, so the installments are small payments that vary from one bank to another and extend for many years and may exceed 10 years sometimes in some banks, so buying a property in installments through the bank is the easiest and longest installments for the buyer.
But there is one bad thing about this type of real estate, which is the price of real estate through banks is higher than other real estate in the same area and the same specifications, and we will expand on this topic in the following paragraphs.
Real estate prices in installments in Turkey:
When you search for installment properties in Turkey, you will find a large difference in prices from one property to another, and this difference is due to several factors, and all these influencing factors have been researched and compiled.
Factors causing the different real estate prices in installments
There are several factors that affect the process of determining the price of a property in installments, including:
The specifications of the property are a major factor in determining the price of the property in installments, and these specifications are represented in the environment surrounding the property as features, and these specifications are:
*real estate location:
The most important specification of the property is its location, and the site starts from the presence of the property in any city in Turkey. Each city has a certain importance and price for real estate in it, and within the city in any area in it, each area has a different importance from the other and therefore a different price for the properties in installments, or those that have installment offers. On the other hand, the location of the property is its position within the site, that is, important areas adjacent to the property, this location is of great importance in determining the price of the property in installments.
The view of the property is no less important than its location. It has a major role in attracting attention to it by investors, tourists, and those who want to buy a property to enjoy the beauty and atmosphere of Turkey. When the property overlooks a water oasis or a beautiful green square, its price in installments is higher than real estate with a normal view.
*real estate furniture:
Real estate furniture is represented by the home furnishings in it, and real estate furniture differs in luxury, quality, and source, and this difference in the types of furniture has a role in the different prices of real estate in installments, the price of a real estate with luxury home furnishings is more expensive than other real estate with ordinary furnishings.
*Services around the property:
Any investor who wants to buy a property in Turkey in installments, is interested in the presence of government services surrounding the property and close to it, that is, the services surrounding it have a major role in determining its price in installments and contribute to the difference in installment prices from one property to another, and these services are represented in the health, educational, cultural and recreational centers surrounding the property, which bring back to the buyer more yes and more ease in living.
*real estate infrastructure:
Infrastructure distinguishes real estate from each other, and the infrastructure is represented by road networks connecting regions and cities in Turkey, as well as passing highways and public parking lots.
*real estate area:
The area of the property is an important factor in determining the price of the property in installments, and in the difference in prices between the property and the other, the property with a larger area is more expensive in installments than other properties.
*The first payment is real estate:
The price of the property can be determined in installments through the first payment paid by the buyer, and this is through a purchase contract between the two parties. It is agreed that if a good amount is paid, for example, 50% of the entire property price, then the seller sets discounts for the buyer and the price of the property is cheaper, but if a smaller amount is agreed upon as a down payment of 30% of the entire property price, the seller does not offer any discounts, but may raise the price of the property in installments from what it was, so the first payment is important in the difference in the price in installments from one property to another.
*Real estate installment period:
As in the case of the first payment, the installment period also has a major role in determining the price of the property and its difference from one property to another.
*real estate broker:
The real estate broker plays a major role in determining the price and the negotiations that take place with the owner of the property. The real estate broker may be a person or a real estate company that contributes to reducing or raising the price of the property that the investor wants to buy in installments.
Where to buy real estate in installments in Turkey:
Any investor can buy a property in installments in Turkey after he brings all the legal guarantees, and he can buy this property in several options of cities, as in Istanbul, Trabzon and many other cities that allow buying real estate in installments, and in the past years many real estate companies have spread in Turkey, which offers attractive offers for those wishing to purchase real estate in installments.
In conclusion, we can say that the advantages of buying real estate in Turkey in installments are many, and it is a great opportunity for people with low incomes to be able to own a Turkish property and a home for themselves and their families, as well as an opportunity for those wishing to enter the real estate market in Turkey for investment.