There are many ways to invest in real estate. One of them is buying an off-plan apartment in new buildings in Turkey. But, there are risks in this process. In this article, we’ll look at what these risks are and how to avoid them.
Content:
- Features of buying an off-plan property
- Pitfalls of off-plan purchases
- How to choose a reliable property for investment?
- Professional assistance in buying Turkish real estate
Features of buying an off-plan property
Off-plan real estate is housing that’s still under construction when sales begin. You can buy it but you will have to wait a while before you can get the keys. This is a great option for people who want to save money when purchasing real estate in Turkey and aren’t in a hurry to move. It’s also advantageous because off-plan real estate in Turkey is usually 15-20% cheaper than finished housing. After construction is completed, you can resell the apartment and make a profit.
But, everything is not as good as it seems. No one is immune from force majeure and shady developers. But these risks can be minimized. Forewarned is forearmed. So, before you invest money in off-plan real estate, we suggest looking at any potential risks.
Pitfalls of off-plan purchases
Off-plan housing is an asset whose liquidity is sometimes difficult to verify. We can know specific numbers after the building is put into operation. But, uncertainty is not the only thing that affects the safety of investments when buying off-plan real estate in Turkey.
"Freezing" of construction
The main risk for off-plan properties is if the project is stopped for an extended and unknown period. Freezing can also affect real estate during its design or approval stages. One of the reasons this happens is that the construction company can go bankrupt. This is almost impossible to predict. This rarely happens in Turkey because the government acts as a guarantor of investment security when buying off-plan real estate in Turkey. It carefully monitors real estate transactions and guarantees buyers the safety of their investments.
Delayed deadlines
There are several reasons for the construction period to be extended and the project’s commissioning delayed. Sometimes, this isn’t the developer’s fault. The most common reasons are:
- Lack of funding;
- Incorrect calculation of time for the work to be completed;
- Interruptions in the supply of construction materials.
Solution: it’s impossible to minimize risks but you can secure your investment as much as possible. Before you buy a property and sign a sales contract, it’s important to carefully read all the information about the project’s deadline. The document must show the date when the property will be put into operation, and information about compensations or refunds if the construction company violates the deadline.
Problems with documents
According to article No. 22 of the Turkish Land Development Law, the approval of building plans takes up to 30 days. But, construction permits are issued within 2 months or more. Some companies go the other way and start building before they get an official permit. These projects may be considered illegal, work is stopped, and the buyer is left with nothing.
Solution: How to reduce risks by buying off-plan property in Turkey? When you choose a property to invest in, read the information on the company’s official website or contact a real estate agent for help. The developer will review all project documents or request them from the developer.
What other risks are there when buying off-plan housing in Turkey?
Fraud
To save money on buying real estate in Turkey, some fall for the bait of cheap apartments. Scammers attract customers with low prices but sell the same apartment to several buyers. These frauds are difficult to detect at an early stage. The problem is discovered after the house is put into operation and when the developer has disposed of the depositors' money.
In this case, the court will be on the side of the first buyer and the rest of the shareholders will be forced to sue the developer for a refund.
Solution: An honest company has nothing to hide from potential customers. Carefully check the integrity of the developer. Study the documentation on the website, check the construction license and other project information. Try to find out in advance why the housing is sold at this price, what the specifics of the construction are, etc. Don’t forget to check out reviews. Check out the company's ready-made projects and read what real buyers write about them.
Another kind of fraud is the sudden bankruptcy of the company. Similar to the first type, the company attracts a lot of customers, makes deals with them, and then files for bankruptcy.
Important! These cases happened more than 10 years ago. Today, this is extremely rare for the Turkish Republic. All parts of real estate in Turkey, including the activities of construction companies, are strictly controlled by the state.
How to choose a reliable property for investment?
For new investors and people without experience buying overseas real estate, it’s best to contact an agent. A specialist will help you find a proven developer, choose a property perfect for your goals, and tell you where the income from renting residential real estate in Turkey will be higher.
The liquidity of a property depends on its location as well as its quality, concept, and infrastructure. Only a professional with extensive market experience can know all these nuances.
Professional assistance in buying Turkish real estate
The best houses in Turkey as well as apartments from leading construction companies are waiting for you on Turk-Real.Estate. Many offers at affordable prices, trusted reviews, detailed descriptions, photos, and responsive agents are available on the site now!