Below are some commonly ask questions about offplan
property investment. To see the answer to
one question just click the question, to see
all tick the "view all answers" box.
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Q.
|
What
is
involved
in
the
buying
process
in
Turkey? |
|
A. |
Citizens of countries who have a reciprocity
agreement with Turkey can purchase a
property. This includes all countries within
the EU. The only restriction is that the
property cannot be on military designated
land. The majority of properties in Turkey
is 'Freehold.'
Buying a property in Turkey does not need to
be any more difficult than buying in the UK.
It is advisable to have an English speaking
lawyer involved from the start. Here are the
steps involved:
1. Reservation Fee
A reservation fee is taken normally £2000 or
Euro 3000. This takes the property off the
market for a month and freezes the price of
the property.
2. Appoint an independent lawyer
3. Power of Attorney to your lawyer
You can decide on how much power of attorney
you would like to give your lawyer. Some
prefer to be in Turkey for the whole
process, whereas others prefer their lawyers
to complete all the transitions on their
behalf. Power of attorney can be given for:
- signing the private purchase
contract
- opening a bank account
- connecting to water, electric and
phone
- transferring title deeds into your
name
Power of attorney is given at the Turkish
Notary Public. Passports are translated into
Turkish and then the power of attorney
document is made up. As the power of
attorney is in Turkish, there is always an
official oath / sworn translator present to
translate the power of attorney into
English,
When clients are not present in Turkey to
organise a power of attorney, the lawyer can
send it by post. Client will need to go with
this document to a solicitor or notary in
their country to sign it. The power of
attorney must be stamped at the Commonwealth
office. The power of attorney is then sent
back to Turkey and is translated into
Turkish at the Notary Public by an official
oath / sworn translator.
4. Title deed and building licence checks
are made by your independent lawyer
The necessary check to be made are:
- Title deed of plot is free of debts
and other charges
- Title deed of property is free of
debts and other charges
- The property is a freehold property
and can be purchased by a foreigner
- The current ownership of the
property at the land registry
- The builder has all the necessary
planning permissions and building
licences
5. Private Purchase Contract (max'm 4
weeks from reservation)
If the title deeds are clear then your
lawyer makes up a draft of the contract
between the buyer and vendor / builder. This
contract mentions all the details of the
property - including delivery date,
technical specifications, payment terms, and
any special adjustments to be made to the
property.
The draft is made in both English and
Turkish and is then sent to you. If the
terms and conditions are agreed, the lawyer
will then confirm approval for signing the
contract. Any amendments can also be made
until both parties are satisfied.
6. Payment of the first instalment
If clients already have their own bank
account in Turkey the first instalment can
be paid from their own account to the vendor
on the day of signing the contract. If no
Turkish account has been set up, the first
instalment will be sent to your lawyer's
client account (not to the builder direct).
The lawyer will arrange for it to be
forwarded to the vendor on the day of
signing. All other stage payments can be
made similarly.
7. Military approval by the Turkish
Government
Your lawyer will need to send details of the
property purchase to the Turkish government
military approval. This is to check that the
property is not located in a restricted zone
for property.
The council of Ministers is authorised to
determine specific zones to be preserved
such as lands that have strategic importance
in terms of agriculture, energy, history,
mining, cultural, flora, fauna and national
security. Foreign nationals and foreign
companies will not be able to purchase
property in these preserved zones.
8. Independent Surveyor (optional)
From the second payment until the last
payment of the property are due, you have
the option to hire an independent surveyor
(cost Euro 150-300 for a full report on the
property).
9. Transfer of title deed (Tapu)
Once military approval has been granted and
the last payment of full amount has been
paid to the vendor / builder, the title deed
transfer takes place at the Property
Registry Department. Both the buyer (or
legal representative with power of attorney)
and the vendor needs to be present for
exchanging of signatures and title deeds
placed in your name........ Congratulations
the property is yours!
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|
Q.
|
What
are
the
Turkish
people
like? |
|
A. |
If you have chosen Turkey as the country to
start your new life or as the location for
your second home then you will be happy to
hear to hear that the Turkish people are
amongst the most hospitable in the world.
You can expect to be made to feel welcome
from the moment you arrive and it is likely
that by the time you leave you will have a
large circle of local friends and
acquaintances willing to put themselves out
for you.
One of the common misconceptions about
Turkey is that because it is a majority
Muslim country westerners are not welcomed
by the locals. In fact the constitution of
the country provides very well for a secular
state and the position of its non-Muslim
minorities is legally protected. This is not
to say that religion does not play a very
important part in society because when you
arrive you will realise that it obviously
does. Rather, that the population is very
accepting of alternative cultures and
beliefs and as a non-Muslim you will be made
to feel just as much at home as any fully
practising Muslim. You will, however, find
that in the popular tourist areas and the
big cities, religion is far less obvious
than in the smaller villages and towns and
local people will often be found enjoying a
drink after work, partying the night away
and generally enjoying all the same
hedonistic pleasures as much of the UK
population.
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|
Q.
|
How
is
tourism
in
Turkey? |
|
A. |
Turkey
has
a
rapidly
growing
tourist
industry,
good
accessibility
and
will
likely
see
the
entry
of
low
cost
airlines
shortly.
In the overseas property market history dictates that where holidaymakers go,
property buyers will follow. So it's no surprise that as tourist numbers to
Turkey have swelled over the past few years – no doubt helped by a strong
marketing campaign in the UK – so too has interest in purchasing a home out
there.
On the subject of incredible increases, 2005 was a record-breaking year for
tourist arrivals to Turkey with 21 million visitors pouring into the country,
and the Turkish government envisages that 30 million tourists will be arriving
by 2010. "To nurture and meet this increased volume of incoming tourists and
overseas property buyers, the government has announced a range of multi-million
dollar investments and developments" The investments include airport and road
improvements, steps to make Turkey a year round destination including golf
courses, 5 star resorts and a ski resort.
There are 3 international airports in Southern Turkey - Bodrum, Dalaman and
Alanya - although in the winter flights from the UK to Bodrum are only available
from Heathrow. The flight time is about 3.5 hours and there are several airlines
(Thomas Cook, Turkish Airlines, British Airways and Exel). While there are
currently no low-cost airline flights to Turkey, they are expected!
A 3 month-tourist visa is issued at the airport and costs £10.
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|
Q.
|
What
are
the
key
factors
driving
growth
in
the
Turkish
property
market? |
|
A. |
Turkey looks likely to be the European
country to experience the highest level of
growth in property prices over the next 5
years. It has one of the world’s fastest
growing economies and property prices rose
between 25 - 35% in some coastal areas last
year. Due to strong demand, prices in some
off plan developments are rising by up to
20% even before any building work commences.
The following Key factors are driving the
growth:
-
Mediterranean Climate at
a lower cost and beautiful coastline
-
Open property market,
with lower costs than Western Europe
-
Booming Economy, with
prospect of EU entry
-
Rapidly growing tourist
industry, good accessibility and likely
entry of low cost airlines later in the
year
-
Friendly, welcoming
people
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|
Q.
|
How to
do I Finance a Property Purchase? |
|
A. |
Turkish mortgages are available from some
developers however there are not many of
this available at present.
Some form of cash
deposit will be required when you purchase a
property and there are also costs associated
with buying a property including purchase
tax ~3% of sale agreement price, property
tax ~ 0.5% of sale agreement price, Legal
fees 1-1.25% of sale agreement price,
government tax ~ £100, water & electricity
connect fee ~ £250,telephone: Connection fee
£15 approx. and notary charges ~ £100 - £250.
As most will not have the cash to pay for
the whole of the property there are various
mortgage alternatives for financing the
balance including:
-
Developer may
arrange financing for investors
-
Re-mortgaging the primary residence to
release cash to finance an investment
property (although this may not be the
most tax effective solution)
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|
Q.
|
What
are
the
costs
associated
with
buying
an
investment
property
? |
|
A. |
The
main
a
costs
associated
with
the
buying
of
the
property
are:
- Purchase tax ~3% of sale agreement price
- Property tax ~ 0.5% of sale agreement price
- Legal fees 1-1.25% of sale agreement price
- Government tax ~ £100
- Water & electricity connect fee ~ £250
- Telephone: Connection fee £15 approx.
- Notary charges ~ £100 - £250
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|
Q.
|
Can
you
tell
me
more
about
Off
Plan
Property
Turkey? |
|
A. |
We
help
overseas
residents
purchase
new
and
off
plan
properties
in
Turkey.
For
properties
around
Alanya,
this
site
puts
you
directly
in
touch
with
the
property
developer
of
properties
you
are
interested
in.
There
is
no
need
to
have
the
expense
of
an
agent.
If
you
have
questions
about
the
development,
the
surrounding
area
or
Turkey
-
the
developer
is
the
best
person
to
answer
your
questions!
Ask
them
yourself
-
get
the
answers
direct!
The
developer
have
English
speaking
staff!
In
the
Altinkum-Didim
area
your
will
see
a
small
proportion
of
properties
that
are
being
handled
by
an
agent
there.
You
may
like
the
look
of
one
of
the
properties
- or
you
may
prefer
to
discuss
what
is
available
in
the
area
from
his
broader
portfolio.
You
will
not
be
overwhelmed
by a
endless
pages
of
properties
in
Turkey,
nor
will
you
be
inundated
with
phone
calls
from
multiple
agents.
Our
site
carries
properties
from
a
select
group
of
respected,
experienced
Turkish
developers
and
English
speaking
staff
are
ready
to
help
you
with
your
purchase.
Our
goal
is
to
make
the
process
as
efficient
and
stress
free
as
possible.
The
online
enquiry
helps
to
establish
your
initial
needs.
Based
on
the
properties
you
select
a
specialist
from
the
area
you
select
will
contact
you.
Our
clients
have
many
different
objectives
including:
- Investment opportunities
- Relocating to a better lifestyle
- Retirement property
- Vacation property
- Or any combination of the above
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|
Q.
|
Why
do
you
focus
on
OFF
PLAN
property? |
|
A. |
By
working
directly
with
developers,
we
have
access
to
property
opportunities
long
before
they
have
been
released
to
the
general
public
individual
investors.
Often
the
developments
are
situated
in
areas
that
are
being
regenerated
and
have
high
potential
growth.
We
obtain
property
at
its
lowest
price
and
negotiate
substantial
and
genuine
discounts
(i.e.
10%
-
25%)
off
the
current
market
value.
Then
during
the
build
time,
the
value
of
the
property
continues
to
grow
(usually
from
10%
-
15%),
so
not
only
do
you
benefit
from
the
initial
discount
but
also
from
the
capital
growth.
Therefore,
off-plan
buying
through
us
provides
you
with
maximum
return
from
your
initial
capital
invested. .
|
|
Q.
|
How
do
you,
"Find
Offplan
Property",
make
money? |
|
A. |
Unlike
some
other
companies
we
do
not
charge
any
membership
fees.
We
make
our
money
only
when
a
property
is
purchased
from
one
of
our
developers.
For
some
properties
we
charge
a
finder's
fee
/
arrangers
fee
on
others
the
developer
may
pay
us a
small
finder's
fee.
We
feel
the
finder's
fee
is
fair
compensation
for
bring
together
property
investors
and
quality
developers
who
offering
genuine
discounts.
We
work
hard
behind
the
scene,
well
before
a
property
goes
on
the
website,
and
incur
costs
to
provide
transparent
information
on
each
property
to
you.
Our
goal
is
to
build
trusting
relationships
with
you
so
that
you
will
come
back
to
buy
properties
from
us
time
and
time
again.
|
|
Q.
|
Do
you
offer
offplan
property
in
other
countries
/overseas? |
|
A. |
Yes
we
have
several
good
sources
of
overseas
property.
At
present
we
believe
the
three
best
locations
with
strong
capital
growth
are
Turkey,
Dubai
and
Morocco.
You
can
visit
these
sites
by
clicking
on
the
links
below:
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