In the context of rising prices, and the "shuffling" of the most popular areas for the acquisition of housing by foreigners, and legislative innovations of this year, we decided to once again "run through" the key points not to be missed when buying a house in Turkey in the near future.
Content:
- The purpose of the purchase. Citizenship, residence permit and "closed" provinces
- How not to lose money
- Construction stage
- Location in the context of "profit"
- Complete infrastructure of the complex
- Parking space
- The right choice of apartment
- Current costs
The purpose of the purchase. Citizenship, residence permit and "closed" provinces
Before making a purchase, you need to clarify the main reason" why". If it’s for the purpose of resting several months a year and occasionally renting, then there’re no restrictions with the location choice. Most citizens can stay in Turkey visa-free for up to 90 days every six months (up to 60 days continuously), i.e. 180 days a year. This visa-free period grants enough time to spend basking in the sun, travelling, and eating delicious food. When the apartment is not required for personal use, relatives and friends are permitted to stay there during a vacation.
It’s also possible to rent housing with the help of licensed agencies without issuing a residence permit.
If a residence permit is not needed just to obtain citizenship, then two key innovations of 2022 (in addition to the increase of the "financial qualification" from $250,000 to $400,000 for citizenship under an accelerated procedure) are a mandatory min. cost of purchased housing from $50,000 per year in small cities and $75,000 in large ones. At the same time, the residential unit must necessarily be in an area that is "open" for obtaining a residence permit for the right of ownership.
So if you are planning on a residence permit or citizenship, you need to keep both of these factors in mind, as, e.g., the four most sought-after areas of Alanya, including Mahmutlar, are "closed". However, most of the districts are open in MERSIN, which is gaining in popularity.
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How not to lose money
In this regard, the one thing that can protect the buyer is the right company. First, check the reputation of the developer thoroughly: how many years the company has been on the market, the number of completed projects, and how satisfied customers are with the quality of the product. We recommend that you contact an experienced consultant for the selection of a project and a company, to help you to avoid typical mistakes. It’ll be his responsibility to select a developer for you and compensation is also prescribed in the contract in case of all force majeures. Ensure also that it is a dependable firm with a good reputation and that does not let its customers down. Only a thorough knowledge of the local market can guarantee a successful completion of the aforementioned.
Construction stage
Everyone wants to buy ready-made housing to avoid the risk of "getting into" long-term construction: Unfortunately, such cases are not uncommon in Turkey. It’s not always possible to buy exactly what you want. Also, the price at the construction stage may seem favourable, but in the finished version it may be"unaffordable".
The first thing to consider when choosing a housing unit that has not been commissioned is the construction stage. The earlier you "enter" the project, the lower the price will be.
Hence, the earlier you buy, the greater the profitability your "investment in real estate" will yield.
The most profitable stage is the so-called "pencil stage" or "pit stage" when the cost of the selected lot will be minimal. Once the foundation is poured on the construction site, the price immediately rises by 10-20%, and by the time the building is put into operation, the housing you bought may rise in price from 30% to "double".
Therefore, if your goal is to make a profit, you can buy a more spacious residence at the initial stage for the same amount, with a better view and location than for said amount at the final stages of construction.
It’s not uncommon for people to buy two or three apartments in a complex "at the excavation stage", even if taking out a loan for the initial contributions of all the lots (the developer also usually willingly provides interest-free installments until the completion of construction). Afterwards, when the house is commissioned, people tend to sell either two out of the three, or one (leaving the second one for rent), and the third apartment to be used for themselves. Taking into account the price increase in proportion to the stages of construction of a single-sold apartment, it then becomes possible to "close" the debts to the developer for the remaining two!
Location in the context of "profit"
The so-called unique location of the project is very important. By"unique" we mean that it must have some kind of feature: exceptional view, a typical landscape of the area, the most convenient territorial location regarding certain iconic institutions of urban infrastructure (train stations, schools, hospitals, universities), special privacy, a particularly "green" area, etc.
There’re quite a few housing units “just for sale” in Turkey. Then, again, when buying for investment purposes, your purchase should stand out favourably from the general background in some way.
E, g., if you take a small apartment, but in a good complex and near the university, then you’re guaranteed to have year-round tenants/students, who are much less hassle than the "seasonal" tourists.
The same situation happens if you resell: potential buyers will choose between your lot and several others in the various new projects.
You should recall that in resort towns, the invariable favourite is apartments on the first coastline, which are always in demand as the sea can be seen from the windows or the balcony rather than the nearest garage, warehouse, or other LCD.
Complexes on the first line, therefore, always show the maximum increase in price by the end of construction.
In several cities, including Alanya, apartments next to colleges are often in demand. People prefer buying housing at the final stage of construction, several months before the cottage season, and often consider the option of moving families with children. This further highlights the importance of schools and good private colleges as their presence nearby is a very big advantage for the future resale of the apartment.
Complete infrastructure of the complex
Since the beginning of the pandemic, this has become especially important. Five years ago, one pool in the sieve (complex) was satisfactory enough but now people buying housing either already made or at the final stages of construction (= for themselves) are primarily interested in the opportunity to spend maximum time in complete comfort without leaving the residential complex. The spectrum of sudden needs has transformed into a "summer" outdoor swimming pool as well as a heated indoor pool; a sauna, as well as a spacious hammam, "snow" and salt rooms, a spa area; plus a gym, plus an equipped playground for outdoor sports, plus a spacious play area for children, plus parking spaces.
Parking space
This topic deserves special attention. Taking into account how crowded most cities are with visitors nowadays, Antalya and Alanya in particular, the availability of your "own" (and ideally also a reserved "guest") parking space has become vitally important. This is also due to the dramatic increase in the number of cars on the streets. Furthermore, the Turkish government has granted foreigners the right to the safe usage of private cars on the territory of the country for two years without customs clearance (after 2 years, certain procedures will be required).
So, the popularity of covered parking in the territory of the residential complex is also growing. By the way, complexes with their "own" supermarkets, restaurants and coffee shops in the territory have also begun to gain in popularity.
The right choice of apartment
If you buy "for rent" or "for resale" purposes, then it’s critical to choose an apartment based not only on your personal preferences but one that future tenants or the buyer are guaranteed to like.
It’s difficult to "turn off" a subjective opinion and become objective in this situation. A rational idea will be to consult with a sales consultant (who’ll help you to decide on a residence). Specialists communicate with a large clientele and know exactly what housing characteristics have been in demand lately (square footage, floor, brand, etc.), i.e., what will be more profitable to rent/resell later.
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Current costs
In addition to taxes and other purely organisational payments when buying, newly acquired housing will require additional expenses until it’s resold or leased (then the expenses will "fall" on the tenant). Specifically, the similarity of "utility payments". In Turkey, they consist of three parts:
- payment for water;
- payment for electricity;
- maintenance of a residential complex (aydat).
If the apartment is empty, then electricity and water can be temporarily turned off, which means you won’t have to pay a penny, but you’ll still need to pay for aidat monthly. After all, this includes maintaining the house, infrastructure (fitness centre, spa, etc.), and the surrounding area. According to the data for November 2022, the amount from 30 to 80 euros per month is considered to be the "average" aydat in resort areas. The tariff depends on the residential complex, its "high cost", and prestige, as well as a "set" of infrastructure (if there’s one pool or five pools – the price will be different).
You will recall that in numerous resort towns, centralised heating in houses is not installed. Housing units are heated in winter with heaters, air conditioners and other similar devices. In this sense, it will be more economical, to either install "underfloor heating" (with electric heating) yourself or choose a complex where such floors were originally designed by the developer (in terms of electricity "underfloor heating" is cheaper than air conditioners.)