Risks of real estate investment and buying real estate in Turkey
Last Updated: 2023-07-27The risks of real estate investing and buying real estate in Turkey
Turkey has become one of the most attractive countries for Arab and foreign investors, as it is like a treasure box that hides in it many advantages and surprises, from which we will mention its distinctive location between Asia and Europe as it is a distinctive commercial link, its charming nature, and of course its services and facilities for investors from everywhere.
All this contributed to making it always the focus of attention by all investors, but of course, like all commercial dealings, it involves many risks, but do not worry, you have come to the right place!
In this article, we will review and analyze the risks that you may face when entering the world of real estate investment in Turkey, follow us:
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Loss of real estate's financial value in Turkey:
The turmoil in the value of the Turkish lira remains a nightmare that haunts many investors, as the investor is afraid that the value of his property will decrease due to the decline in the Turkish lira's exchange rate against the US dollar or even the occurrence of global financial crises, which of course negatively affect the real estate sector in Turkey and may leave disastrous effects.
There is no doubt that any investor will want a safe environment that guarantees the safety of his investment and reduces the expected risks as much as possible, and it has been noticed that some have complained in this regard about the fluctuations in the exchange rate of the Turkish lira.
But you do not have to worry, as experts and analysts in the fields of real estate indicate that the value of real estate in Turkey does not decrease or decay, but rather the opposite, as its value always rises, and it is possible that some economically weak countries will be affected and afflicted by a long recession, but this will not happen with Turkey as it is classified as one of the 20 most powerful economies in the world, and its economy is considered to be the second strongest in Europe.
When looking at economic analyzes, we find that the fall of the Turkish lira against the dollar did not have a significant impact on the real estate field, in addition to the fact that the lira began to recover again and its value and exchange rate began to rise. What contributed greatly to the recovery of the lira was the government's pricing of real estate in Turkish lira exclusively, which preserves the price of the property and limits the loss of its purchasing value.
When studying the situation of real estate investment in Turkey as an example of investment as a whole, we find that this sector has benefited from the decline in the value of the Turkish lira exchange in 2019, as it flourished and the amount of real estate sale in Turkey to foreigners increased by 69% during the first six months within the year 2019.
Of course, this is an irrefutable evidence that the real estate sector has emerged from its previous recession and has returned to rise in terms of attracting more investors.
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Anxiety about choosing an inappropriate property:
When buying a house in Turkey, do not forget to specify the purpose of buying it, what do you intend to do with it? Is it for housing? Or investment? Or obtaining Turkish citizenship?
Likewise, you have to carefully decide and define all the characteristics and features that you would like to have in your property in terms of the number of rooms, the area of the house, an apartment with a sea view, the service facilities within the property, the finishes and their quality, and of course you must specify the financial value that you want to spend on your project, so all of this will help the real estate agent to meet your needs, defining your exact request, saving time and effort.
Certainly, if you want to live in the property, you will have certain specifications that differ from your use of it as an investment, a workplace, or a restaurant, for example. Each has its own way of thinking and specific priorities, without which the presence of the property is of no use.
Once you decide what you will benefit from or in what you will invest it, you move to the second phase, which is choosing the most appropriate site that meets your need, so you must do tours within the neighborhoods and residential complexes in Turkey, search and ask about the nature of the area and the degree of suitability for your project, and remember always to inquire about the proximity of public and private transportation from the region because that is a key factor in the success or failure of the investment.
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Concern over fraudulent and unreliable entities:
If you are thinking of investing in Turkey, you should always inquire about the extent of honesty and transparency of the party that you deal with now and in the future.
To ensure your peace of mind, we recommend that you always deal with a real estate broker known for trust and reliability.
To achieve this, you have to do a thorough research within the real estate market in Turkey and find the real estate company that you will invest in.
Once you find your way and decide to invest in a particular company, you have to be careful! Yes, pay attention to the conditions agreed upon in the contract, and review the terms for protecting the rights of the investor.
If you follow these steps, there will be no cause for concern, the expert real estate consultant will help you and provide you with all the information about real estate in Turkey in a way that facilitates your decision. Visiting the site with one of the employees will draw a clear picture for you about the project and its advantages and disadvantages for sure.
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The mortgage ghost and fear of not being able to pay it:
The option of mortgage and purchase in installments has become one of the most attractive things for Arab and foreign investors to invest in Turkey, but this of course involves real concerns that the buyer can make the monthly payments due to him. Here we will explain to you the mechanism by which the installments are paid in a comfortable way according to the Turkish commercial laws and provisions:
The value of the first financial payment constitutes up to 30 to 40% of the total value of the property in Turkey, and it can sometimes reach 50%. As for the value of the monthly installments, this is what is agreed upon between the buyer and the real estate company concerned in a way that satisfies both parties. The investor has to negotiate with the company to reach a suitable deal for him and ensure that he can pay the installments without worry or doubt.
You will not believe your eyes! When you pay all your installments ahead of time, you can get big discounts of up to 20%. Isn't that amazing!
After presenting all the potential risks when buying apartments in Turkey, we will give you the most important tips as quick points, and always keep in mind:
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Deal with the most reliable companies.
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Do not be lazy about making tours of the project site.
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Ensure your legal rights by hiring a lawyer specializing in real estate matters.
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If you want to buy a property under planning, be firm by specifying the time of delivery with penalties imposed in the event of procrastination and delay.
You are now ready to go through that experience and dive into the field of real estate in Turkey
What are you waiting for? Hurry up and start investing now, time is money.
Edited by Mersat Real Estate Team ©
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