A year ago, Turkish banks reduced the mortgage rate for foreign buyers of real estate from 12.99 to 6-7 percent in December 2019. After reading about this in the news, Olga Orekhova from St. Petersburg went to Mahmutlar to look for an apartment in Turkey as a gift for the New Year.
CONTENT
- Background. I've always dreamed of a house or apartment by the sea.
- December 14, 2019. Arrival in Turkey, checking in at the hotel and meeting with realtors.
- December 15-17. Viewing options from different agencies and owners.
- December 18-23. Choosing a bank, examining an apartment and calculating a mortgage.
- December 23. Making a deposit. Translating and notarizating documents for the mortgage. Opening a bank account and submitting documents.
- December 27. Making a purchase and sale transaction. Leasing an apartment.
The author is Olga Orekhova, 48, an accountant from St. Petersburg.
BACKGROUND. I'VE ALWAYS DREAMED OF A HOUSE OR APARTMENT BY THE SEA
I have spent my vacation in Alanya for the last seven years. I fell in love with this city. I walked around it a lot and visited the main areas - Mahmutlar, Kestel, Tosmur, Obu, Damlatas, Kargıcak. During my visits, I visited apartments under construction and ready-made houses in different areas. I was very much interested in the real estate market in Turkey and decided to buy an apartment with a mortgage in the summer of 2018. However, when I was going to buy an apartment in the autumn, mortgage rates suddenly increased in Turkish banks, so the purchase had to be postponed. At the beginning of December 2019, when the rates fell to the optimal level again, I had already known exactly where and what kind of apartment I wanted to buy. I made a list of residential complexes and developers that I liked in Mahmutlar. According to the information I read on the Internet and checked with realtors, Turkish banks gave foreigners a mortgage amount of money equal to 60 percent of the apartment cost. I managed to get a mortgage for 45 percent of the apartment cost in Turkey, I brought the rest of the money in cash in euros. My capital (money from the sale of my grandmother's apartment in Russia) with a mortgage was enough to buy a 1+1 secondary housing in Mahmutlar: a two-room luxurious apartment. Why did I choose Mahmutlar? Firstly, I really liked the area itself: well-groomed, beautiful streets with orange trees, elegant high-rise buildings with swimming pools in the courtyards, a lot of parks, no more than 500-800 meters to the beach, a beautiful embankment, excellent transport links, clean sea. Secondly, apartments in Mahmutlar (both new and secondary housing) were significantly cheaper than in other areas of Alanya (about 10-30 percent, depending on the area).
DECEMBER 14, 2019. ARRIVAL IN TURKEY, CHECKING IN AT THE HOTEL AND MEETING WITH REALTORS.
Long before my trip, I applied to different real estate agencies in Alanya, compared offers, read reviews about agencies and developers on the Internet. I chose several agencies, where employees answered my mortgage questions as quickly and clearly as possible. They had been sending me really interesting apartment offers at good prices for several months. I compared all the prices removing the overly expensive offers and agencies. I chose a luxurious apartment with a 1+1 layout (living room combined with kitchen, bedroom, bathroom, and a large balcony) in residential complexes no older than 5-7 years with recreation infrastructure and a beautiful garden. I also wanted to buy an apartment with furniture, air conditioning, household appliances, so as not to waste time and extra money for home improvement. By the way, there is a very pleasant moment here - most often, the apartments are sold fully equipped in the secondary market of Turkey. This means that you can buy an apartment and immediately settle in it or rent it out. The price of the 1+1 apartment, which I was satisfied with according to its characteristics and photos, ranged from 35 to 45 thousand euros. I decided that the ideal option for me would be a furnished apartment with a 1+1 layout in Mahmutlar on the floor no higher than the fourth (I am afraid of heights) from a neat European owner who came here to rest several times a year and did not rent out his housing.
DECEMBER 15-17. VIEW OPTIONS FROM DIFFERENT AGENCIES AND OWNERS.
During the three days of my stay in Alanya, I visited about fifteen apartments that were suitable for me at a price with an area of 55 to 75 square meters. I gave up on small apartments (less than 60 square meters, because I wanted a more spacious apartment), apartments without a corridor (when you immediately get to the living room combined with the kitchen from the entrance), apartments with small balconies or without a balcony, apartments with windows near a neighbor or a road. I also gave up on apartments in residential complexes without infrastructure, because I wanted to buy an apartment that is suitable for renting to tourists. As a result, I chose a very nice 1+1 apartment with an area of 65 square meters on the third floor with furniture and appliances in the center of Mahmutlar. I got it from the Finnish owner. The apartment seemed very bright and spacious with a good view. It was neat, tastefully furnished, completely ready for my checking-in. There were even dishes, blankets, an iron with ironing board, a juicer and many useful things in the household, almost new things. It immediately won my heart. The residential complex was also very pleasant. It consisted of a single 10-storey block with a beautiful mosaic facade. The four-year-old house 350 m from the Mediterranean Sea had a swimming pool, sauna, small gym, closed and very beautiful territory with a tropical garden and flower beds that bloomed even in December. With the search for a suitable apartment, I received a tax number. It is similar to the Russian TIN, it is issued quickly and free of charge in the tax authority of Alanya.
DECEMBER 18-23. CHOOSING A BANK, EXAMINING AN APARTMENT AND CALCULATING A MORTGAGE.
The apartment price was 42 thousand euros. I had about 60 percent of this amount of money. I exchanged the money in euros in Russia, brought it with me and declared it at the airport. I would like to point out that the declaration of funds turned out to be a simple and very fast procedure. It took me no more than 10 minutes to fill out and complete the questionnaire.
I took a mortgage in “Garanti Bank” in Turkey, because it offered the minimum rate: 6.2 percent per annum. The real estate agency helped me apply to several banks at the same time. The mortgage rate ranged from 6.2 to 7.9 percent per annum in different banks at that time. Mortgage conditions were about the same everywhere, so I chose “Garanti Bank” because of the lowest interest rate. After the arrival of the experts and the cadastral assessment of the apartment, the bank decided to issue me 19,350 euros, which was 45 percent of the market value of the apartment and quite satisfied me. I took out a mortgage for ten years with the early repayment (the penalties for which in Turkey are minimal – 1-2 percent of the loan amount). The monthly payment was 217 euros.
DECEMBER 23. MAKING A DEPOSIT. TRANSLATING AND NOTARIZATING DOCUMENTS FOR MORTGAGE. OPENING A BANK ACCOUNT AND SUBMITTING DOCUMENTS.
As soon as I made the final decision to buy an apartment with a mortgage, it was time to make a deposit. As my realtors explained to me, its size depended on how long it would take me to prepare for the transaction. I had everything almost ready (the transaction was scheduled for the near future - December 27), I left a small deposit - 1000 euros. The deposit agreement was drawn up in two languages (Russian and Turkish). After signing I had a few days to prepare the mortgage package of documents. The documents had to be translated into Turkish by a sworn translator, and some translations had to be notarized.
What documents did I need to get a mortgage in Turkey?
- international passport;
- a copy of the TAPU for the apartment in Turkey that I was buying;
- statement from Sberbank on the movement of funds in my account for six months;
- new electricity and water receipts issued in Russia at my address of residence;
- income certificate from the place of work;
- certificate of ownership of an apartment in St. Petersburg.
I also needed a tax number and electricity and water receipts in Russian to open a bank account and confirm the address of my actual residence in St. Petersburg.
What were the costs involved in obtaining a mortgage in Turkey?
- the bank's commission for making a mortgage transaction (0.5 percent of the loan amount);
- state duty (about 900 liras);
- services of a sworn translator and notary (about 1000 liras in total);
- registration of insurance (about 400 liras)
- examination of the apartment (about 1300 liras).
DECEMBER 27. MAKING A PURCHASE AND SALE TRANSACTION. LEASING AN APARTMENT.
On the appointed day, I arrived at the Cadastral Office accompanied by a realtor, a sworn translator and an apartment seller. We spent about an hour in the waiting room, but the transaction procedure took only a few minutes. After the translator read out the sales contract to me and confirmed that the apartment was free of debts and mortgages, I signed it, paid money in cash and received a TAPU. The bank transferred its part of the money directly to the seller's account.
My dream came true - to celebrate the New Year in my own apartment by the sea. On January 3, I flew to Russia having previously signed an apartment rental agreement with the agency. Since July 2020 (when the coronavirus restrictions were cancelled and tourists from different countries went to Turkey again) to this day, I rent my apartment for short-term (from two weeks to a month) to tourists with the help of an agency that sold me my apartment. I earn from 450 to 600 euros per month on rent, of which I pay off the mortgage.