Indeed construction property attracts investors due to its launching prices which mostly give you a high ROI compared to ready-to-move property and in return the investor is taking a risk of time.
But as a foreign investor always there are several things to which investors have to be careful and attentive while investing in an under-construction property, following are the ways to avoid default, bankruptcy, and further dangers which might occur in buying under-construction property.
-Who is the Construction company for the project? It is the most important information to know. Are they not someone who has a huge debt from the banks and can go anytime default if they are not able to generate the expected sale? Simply in this case buyer have to demand the title deed of under-construction land and provide it to his/her lawyer and inquire from the title deed office about the amount of debt on the land, It is very normal to have debt on the land but important is to know the size of the debt according to the project, In this case, Lawyer and Realtor must be consulted.
-The construction company’s history of delivering projects on time and exactly what they promised during the presentation and in the model is also important to know because if they have a history of delays and this is also not normal, then their buyers have a choice and if they do not deliver what they promised in their previous projects, then the investor should avoid this option.
-This is one of the most important points that I will address in a moment: The buyer must always sign a notary contract for a property under construction, not a general contract between the construction company and the buyer. The notary contract guarantees your safety from the government, which will only make you the official owner, and only in the presence of your lawyer, who will pay attention to what rights have been granted to the developer in terms of size, floor plan, private gardens, etc.
-A property study of the location you are buying is key, where you must know what are generally price per sqm selling in that area
-Why is it necessary to know the price per sqm? The answer is simply that not every developer is launching their prices as they should be compared to new ready-to-move options, many of them try to keep their profit ratio high from the beginning and try to make any attractive part of their project a unique selling point, but buyer must be careful with this strategy and make the price lower than the new ready to move options available around.
-If there is an installment option, even if the buyer does not want to invest in cash, he must know the difference between the percentage of installments and the discount and then make an appropriate offer, because you may find a construction company that will sell you more in installments than the bank interest.
-Have a professional realtor with you on a property tour who will save you a lot of time by providing you with the above information and reminders.
If you are interested in real esate investment, we advise you to learn about Real Estate in Turkey