Whether to buy a property in Turkey depends on your personal financial situation. There are several tax incentives to consider and you can even take advantage of financing options. You can also consider the location of the property. You may even want to consider the return on investment. After reading this article, you should know whether investing in Turkey is a good idea for you.
Tax incentives
Tax incentives for buying property in Turkey may be beneficial for you if you plan to stay in the country for an extended period of time. For example, you can get tax exemptions on newly built properties and recover previous taxes that you paid. However, there are certain conditions to qualify for tax exemptions. First, you must secure all the necessary documents. Second, you must apply to the Turkish tax authorities. Upon approval, you will receive a “Tax Exemption Certificate.”
Another important factor to consider is the tax rate. The tax rate is one of the factors that will determine whether you will make money or lose it from your investment. In Turkey, taxes on investment properties are constantly changing. Therefore, it is important to understand the various taxes that you will have to pay for real estate. For instance, you must pay a Title Deed Transfer Tax. In addition, you will have to pay an Annual Real Estate Tax. If you are a foreign investor, you will also have to pay Real Estate Value Increase Tax.
Location
Location of property in Turkey is an important factor in deciding whether to buy a holiday home or an investment property. You should think about the location of the international airport, the location of main roads and amenities, the proximity to the sea, and places of interest. Turkey has many prime locations, and a property in these areas is likely to increase in value in the future.
When investing in Turkey, you should make sure to research the area and make sure the property you are buying is worth the money. It is also helpful to take a tour of the local area. Next, you will need to apply for a mortgage. This process can take a while, so it is a good idea to hire a mortgage broker to help you get approved. Once you’ve decided to buy a property in Turkey, you should create a budget for the property you want. Once you’ve finalized the price, you can then appoint a solicitor to handle the deal for you.
Return on investment
Investing in property in Turkey is a great way to create a solid return on investment. The Turkish property market has a strong buy-to-let market and capital appreciation is predicted to be above-average over the next five years. The high number of tourists in Turkey also means that rental yields can be high. One way to increase your investment is to buy property off-plan. This type of investment requires you to make full payments at different stages of the construction process.
Another way to increase your investment return when buying property in Turkey is to invest in properties with excellent financing structures. Most of these properties require investors to pay 30% of the property value as a deposit, with the remainder payable upon completion or via mortgage. This means that developers can offer their units at below market value. Despite the low purchase price, Turkey’s off-plan property market is experiencing a steep growth curve.
Financing options
There are a number of ways to finance your purchase in Turkey. Most Turkish banks have English-speaking financial advisers and offer various payment plans. Many offer off-plan finance to purchasers of homes that are still under construction. This option may require a guarantee from the construction company. Banks are willing to lend up to 70 percent of the total price of the property, and repayment terms may vary. Generally, repayments can take up to 20 years and cannot exceed one third of a buyer’s monthly income.
Another option is to take out a Turkish mortgage. These mortgages can be obtained by non-resident foreigners who are able to prove they are capable of paying off the mortgage. The conditions may vary from region to region and from currency to currency. If you’re planning on buying a property in Turkey, you should know what type of mortgage you’ll be receiving.
Turkish real estate market
Several reasons make the Turkish real estate market a great investment. The first is the country’s strong capital formation. The country’s GDP is only 10% that of the rest of the world, which is driven by exports, investment, and domestic consumption. As a result, the Turkish real estate market is an investment-driven growth engine.
Turkey’s real estate market has undergone a number of changes in recent years. Some of these changes have benefited buyers, while others have been necessary to modernise the industry. Regardless of the reason, these changes are good for the overall market and will ultimately benefit buyers.
The Turkish real estate market is very different from other investment markets in the United States and Europe, but it’s still a good long-term investment. It’s important to do your research to ensure that you’re getting a good deal on a property in Turkey. There are many factors to consider, such as the local economy, infrastructure, taxation, and demographics.
