You can pay in installments when you want to buy real estate in Turkey. A lot of construction companies will provide you with installment packages. The best thing about installments is that these installments come directly from the construction company in Turkey. So you don’t need to go to a Turkish bank and take loans and pay extra fees and interest to the Turkish bank.

Methods of payment when buying real estate in turkey

Methods of payment real estate in turkey

If you want to buy real estate in Turkey, you have two payment options: Pay in cash or installments.

These two payment methods are one of the facilities the Turkish government projects and private developers supply to all foreign investors who want to purchase Turkish real estate. Cash payment is when you pay at once the complete payment required for the price of the Turkish property.

The installments are the payment agreed upon between the construction company and the buyer for the price of the Turkish property. The construction company determines these installments based on the construction stage of the property.

Suppose the buyer of Turkish property cannot pay a large amount of money or may not like to expose their funds at this time. Then, the buyer can be offered by Turkish real estate companies and developers long-term payment plans of up to 10 years, depending on the construction company.

Your financial budget decides the payment method when buying a property in Turkey. If you have a significant enough budget, you will likely choose to pay in cash. And if your budget does not allow for it, you will select paying in installments.

Can foreigners buy property in Turkey in installments?

Yes, foreigners can buy property in Turkey in installments.

According to Turkish law, any nationalities allowed to own real estate can buy it in installments. Turkey has always been desirable for foreigners due to its amazing climate, nature, culture, and history. Istanbul also is the most attractive city for foreigners. So they love to start their investment project or buy an apartment.

As a result, the government is offering a lot of chances and sales to come and invest in its Turkish real estate. So then, they can get the title deed and apply for Turkish citizenship

To buy a property in installments, foreign investors must pay the initial payments of the property value, which ranges between 25% and 50% of the total property value.

The construction company will give you different suitable packages and sales for the property. The installment package mostly depends on the construction stage and the expectancy of the delivery date. Also, the construction company will organize an official sales contract. It determines the value of the payments and the process for paying the installments, where these installment payment plans will be notarized by The Turkish government.

The contracting companies offer the most installment payment plans for the property that is still a project under construction.

Is it a good choice to buy property in Turkey in installments?

Buy Property in Installments

Many foreign investors prefer buying property in Turkey in installments over cash. But is it an excellent choice to buy property in Turkey in installments? Let’s find out together.

Go with buying property in Turkey in installments if:

The property is under construction, so you can get the best price while it still not ready because property prices tend to be increased once the property is near the delivery date.

  • If you plan to live in Turkey later.
  • If you are planning to invest in multiple units, you don’t need to pay all the payments in cash for various units; you have to pay the down payment for all the units, which will be less burden for you and the rest of the payment in installment. As a result, you will own multiple units at the end with ease of mind. 

But if you want to receive the property and get the title deed. Or if you want to feel safe and comfortable because the ownership of the property has become yours. Or if you want to get more discounts on the apartment, then paying cash is the best choice.

So then, your reasons as a buyer determine the ideal payment method. Yet, real estate specialists will help you determine which option is most suitable for you to pay. 

What types of properties can be bought by installment?

The Turkish real estate market has a variety of opportunities for foreign investors. Any property can be bought by installment, whether buying a ready-for-accommodation property or an under-construction property. Foreign real estate investors usually go to Turkey and Istanbul to buy villas. And many foreigners are moving to Turkey and Istanbul to purchase residential or commercial apartments. So, these foreign real estate investors can easily get property offers and sales in installments. And also with low down payments. 

Also, many foreign property investors prefer to go towards buying property offered by construction companies. Because these properties are newly constructed projects. And they have a greater possibility of buying in installments with big sales and special prices.

But when it comes to second-hand properties and land investments, there is almost no possibility of buying in installments. Also, we recommend buying a property in Istanbul. Because buying a property in Istanbul is a good investment, thanks to Istanbul’s excellent investment climate.

What is the downpayment?

A down payment is a guarantee between the foreign investor and the construction company in Turkey.

The down payment amount is dependent upon the construction company. The down payment allows the buyer to close the sale of the property while he prepares for his financial condition.

This payment also might be considered the house’s first payment.

How much is a downpayment on the house in Turkey?

The buyer and the construction company agreed upon the amount of the down payment for a residential house. And The down payment begins with a deposit of 25% or 30% and up to 50% of the total price.

It depends on which construction stage you are buying the property. And you pay the rest in monthly installments according to the contract and the construction company.

How much is the cash discount?

When you choose to pay the entire property price (in cash), you will receive a large sale on its worth. which typically varies between 10% and 25% depending on the construction company. But also it can be more. One of the primary conditions for buying a property in Turkey in cash is to transfer the entire amount from bank to bank. And if you want to buy it in cash, you will only pay the transfer charge once. Then, when the property is ready for occupancy, you can get the title deed immediately from the title deed department. Also, you’ll gain ownership so you can apply for Turkish citizenship.

How many years is a good installment?

So it’s important to know that the fewer installment years, the better. Also, it is essential to understand that installing apartments directly from construction companies in Turkey is the best, as it is free of interest. Next, The construction company will organize an official sales contract.

The value of the payments and the process for paying the installments are determined in this notary contract. But in general, several 3-4 years is a good installment number in Turkey.

Do Turkish banks give loans to foreigners?

Yes, foreigners can take loans in Turkey from Turkish banks. For example, foreigners can apply for personal loans at Turkish banks to get residential loans.

Also, foreigners request residential loans from the bank to get the title deed quickly. After that, they can apply for Turkish citizenship.

But if you decide to take loans to buy a property in Turkey, you should know that the banks will impose interest on the monthly payments.

Turkish citizenship and buying property in installment

The Turkish government has made it possible to get Turkish citizenship by buying property in installments. However, suppose the installment value reaches 400,000 dollars regardless of the rest of the payments to complete it. In that case, the value of the purchased property must be at least $400,000 to get Turkish citizenship. So It is impossible to gain Turkish citizenship if the investor picks a property of the required value and pays a down payment of $50,000 or even $250,000.

Also, you can apply for Turkish citizenship immediately if the down payment is 400,000 dollars and you have made the notary contract.

Advantages of Buying Real Estate in Turkey in Installments

Buying real estate in Turkey in installments is simple. It does not impose any limits or conditions on buyers or investors. So here are the following advantages you must know:

  1. The date frame for paying the installments varies. So, if you need more money to pay in cash, you can pay the price on agreed months. The date’s range depends on the construction company, and you can choose what works best for you from their packages.
  2. Some building businesses provide a sale discount to real estate buyers who pay in installments.
  3. Real estate residency, one of the best types of residency, is available.
  4. After construction, the prices of residences under construction grow by up to 30% or more. That allows you to sell them and profit from the price difference.

Disadvantages of Buying Real Estate in Turkey in Installments

Buying real estate in installments in Turkey is safe. There are no significant disadvantages. But you’ll have to know that you’ll not get the vast sale discount usually made when buying real estate in cash. And sometimes, if you buy apartments in installments in Turkey and cannot pay the installment payments on the date according to the contract, an amount of money is taken as a penalty.

Also, If the installments are over a long period of years, there is a risk that you will lose the current value of the property. And also, It will take you longer to get ownership and Turkish citizenship.

Risks associated with installment plans and the purchase of under-construction projects

real estate properties in Turkey

Construction companies make offers and sales to attract buyers. Also, installment offers to allow more installments with flexible installment plans. But you will only get significant discounts when you pay with cash. And when you purchase under-construction property in Turkey, you pay only 20% to 30% of the property price as a down payment. You pay the rest in installments according to the project due date and in agreement with the project owner.

But also, it is possible to fall into the trap of fraudulent companies in Turkey. You may lose your capital and enter into long lawsuits. So make sure to buy the property from a reputable company. Also, consult experienced and reliable realtors in this field. Buying ‘off-plan’ property puts you at risk if the builder or developer goes bust before your property is built. Also, be careful while paying your installments. Pay only part of the amount, even if it is available. You must always pay gradually with the progress of the construction stages. Finally, inspecting the property and ensuring the materials’ quality is essential. And that everything you agreed on is available.

Finally, we are always willing to assist you in determining the best payment method in Turkey. We have the most up-to-date database of real estate properties in Turkey. And will also provide you with the most innovative services and opportunities at excellent pricing.

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