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 Post subject: How easy is it to buy/sell property in Istanbul?
PostPosted: Sun Sep 07, 2014 7:10 am 
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Joined: Sat Jul 05, 2014 10:47 am
Posts: 3
Hello,

My husband and I are contemplating a move to Istanbul in a few months. As we plan on staying for 2 or 3 years, and as rents are rather high, we are considering purchasing a property. My question is; do Turkish banks finance real estate purchases? I mean, we do not wish to put in a bulky sum of money upfront. We prefer to pay by installments over a number of years. Would that be possible?

Also, when the time comes to leave Istanbul, would it be easy to sell the house? Can the bank buy it back as is the case in other countries ? and if not, how long would it normally take to sell a property?

Thanks


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 Post subject: Re: How easy is it to buy/sell property in Istanbul?
PostPosted: Mon Sep 08, 2014 9:09 am 
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Joined: Sun Aug 31, 2014 2:49 pm
Posts: 10
Good morning Noha

Yes the Turkish banks do provide mortgages for property purchases to foreigners- I think loan is a better term as the maximum term is only 10 years. I believe on average they loan up to around 50% of the purchase price to a total of about 500k TL but this varies depending on nationality & personal circumstances.
Mortgage rates can be a bit on the high side however - which is why I think it's so hard to find them on the bank websites! A few banks that I know have info on Mortgages for foreigners are Garanti / Yapi kredi / Deniz bank. (I'm sure there is much more & I have no idea who would be best).

Many developers in Istanbul are also offering attractive payment plans, depending on how much you put down to secure the rate and/or length (I saw a 0% on Sat) but obviously if your looking for a house pretty sharpish you might find most of the property with these offers have been sold earlier during construction.

Yes rents are very high in Istanbul aren't they!!! - it's a property investors haven and it's looking to carry on that way. I presuming you'd be moving for work purposes? if you want a mortgage and know the time you'll be living here? and therefore are aware that you'd need a residency permit to stay longer than 3 months in any 6 month period.

Selling / buying a property here is very speedy (it slows down if purchasing as a foreigner due to the need for Military clearance) - Cash buying locals could be in a property within days of agreeing on a price!.

The population forecast for Turkey & esp Istanbul is basically just growing, growing, growing and there's already a shortfall in supply and demand of property. Based on that I'd presume you would be able to sell pretty easily when you leave, esp to investors- however the mortgage debt has to be cleared before signing over the title deeds (If the buyer is also having a mortgage for the property most banks take this on between themselves). However property prices keep on increasing year after year and if your in a position to keep on the property based on the sheer size of the rental market & potential returns you could always rent it out after leaving.

I hope I answered some of your questions if not or if you have any others following my ramble give me a shout.

Regards Ck


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 Post subject: Re: How easy is it to buy/sell property in Istanbul?
PostPosted: Mon Nov 03, 2014 7:08 am 
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Joined: Sun Jul 15, 2007 1:12 am
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The only downside to renting is that you can only rent in TL (years gone by you could rent in foreign currency), if you have a long term tenant then you can only raise the rent by the max allowed by the government; which doesn't keep pace with the devaluing of the TL and it's very difficult to remove the tenant.

PS: you can only collect rent via a bank account, so that the government is aware of the rent and thus the tax owed


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