What is the minimum price for a house with installment purchase conditions in Turkey?

What is the minimum price for a house with installment purchase conditions in Turkey? questions that arises for those interested in purchasing property in Turkey with installment plans is about the price of properties sold through this method. People often look at platforms like Sahibinden (similar to Iran’s Divar website) to find prices. However, what is seen on these sites are cash sale prices for second-hand properties (several years old with second-hand deeds) or new units with cash payment conditions. So, how do we know the price of a new property with an installment plan? Stay with us until the end of this article for the answer.

Is the price of an installment property the same as a cash property in Turkey?

As mentioned earlier, the prices advertised on websites like Sahibinden or other property sales platforms usually pertain to properties that are several years old or new units sold for cash. The price of a house in Turkey is influenced by factors such as the age of the building, the cost of materials at the time of construction, the location (neighborhood and area), the quality of the project’s construction, and the developer’s reputation. It’s natural for a second-hand property to be cheaper than a new one due to its age and maintenance costs.

The price of new installment properties differs even from pre-sale (under-construction) properties or new units offered for cash. The reason is that the seller’s capital will be returned to them in installments over several years, and given the current inflation rate and economic situation, it’s difficult to predict price changes in the coming years. However, developers are always striving to provide favorable conditions for investors so that they can own a new property in Turkey with a minimal budget and suitable installments.

How much down payment is required for an installment property purchase?

Now let’s turn to the question of what budget is needed to purchase a property with an installment plan. Depending on each developer’s sales strategy, the down payment in different projects starts from 25% to 30% of the total property price and can go up to 50%. This amount must be paid in cash at the time of purchase, and the remaining balance can be paid in installments until delivery.

The final price of the property varies depending on the neighborhood and area, the developer’s reputation, and the project’s quality. However, if we consider the minimum budget required to purchase a property in an average project in a reasonably priced area, you should have approximately $50,000 for the down payment. We recommend reading the article “How not to overpay for property in Turkey?” for more information.

What is the duration of property installment payments?

You might ask how many months of installment payments are needed to own a home. The number of installments depends on the developer’s sales policies, the project’s delivery timeline, and the stage at which you purchase the property (such as during excavation or in the middle of the project’s execution).

Developers usually set the number of installments until the project is completed and ready for delivery. However, in some projects, developers extend the installment payment period up to 1 to 2 years after delivery. In total, the duration of installments varies across different projects, from 12 months to 5 years, and is not uniform.

How to obtain Turkish residency and passport through installment property purchase

One of the questions you might have is about obtaining a Turkish passport or residency through an installment property purchase. According to the Turkish property residency (Taşınmaz İkamet) laws, a property purchased for the purpose of obtaining property residency must be ready for occupancy. This means that if you purchase a property in an under-construction project, you can only apply for residency once the property is completed.

However, the conditions are different for obtaining Turkish citizenship. If we purchase a property with a minimum value of $400,000 in an under-construction project on an installment plan, we can apply for citizenship. Nevertheless, according to Turkish nationality and passport laws, all required documents, including the payment slip, currency exchange certificate (Döviz Alım Belgesi), and property appraisal report (Ekspertiz Raporu), must be presented in a way that all collectively show the amount of $400,000.

For example, if the value of the property you are purchasing is $800,000, you must pay $400,000 in cash and the remaining amount in installments. In this case, you can apply for a passport even with a notarized (Noter) contract and without the property deed.

It is worth noting that Home Turkey Holding, as one of the most reputable companies providing investment and real estate services in Turkey, has provided special conditions so that you can apply for Turkish citizenship even with down payments of less than $400,000.

From which Turkish developers should we buy installment property?

One of the most important questions regarding installment property purchases for customers is whether Turkish developers can be trusted and which developers have more credibility.

In response to this question, it must be said that Turkey’s A-list developers are projects executed by the Turkish government, followed by GYO companies. These companies are considered the best developers in Turkey, and their activities are fully supervised by the government. The quality of these companies’ projects is excellent; they use the highest quality materials. Furthermore, they adhere to their commitments and do not delay project execution and delivery.

For other companies, it is essential to pay special attention to factors such as whether they are supervised by the Turkish government, their operational history, completed projects, the quality of previous projects, and the number of delivered projects. In the context of property purchase contracts, always seek assistance from experienced and professional lawyers to avoid any problems.

Whether for renting a house in Turkey or buying and selling property, the presence of experienced lawyers and specialized experts will prevent problems arising from your lack of knowledge of the country’s laws and regulations or from opportunistic individuals.

Are apartment deeds ready in under-construction projects in Turkey?

Finally, the last point that needs clarification is the issue of the property deed. In under-construction projects in Turkey executed by GYO companies, the individual unit deeds are issued from the very beginning of the project (i.e., excavation). However, for other developers, the property deeds are prepared by the municipality after the start of the second floor of the project, or what is known as the second roof.

Therefore, if we want to purchase a property in an under-construction project with cash, we can receive the property deed at that time. However, in the case of an installment purchase, the deed will not be given to the buyer until all property installments are completed.

Of course, the notarized (Noter) property purchase contract is fully valid, and since the property deed is registered in the buyer’s name at the municipality of that area after the notarized contract, there is no longer any concern about a developer selling a single unit to multiple people.

We hope the content of this article has been a useful guide for you in learning about the minimum price of a house with installment purchase conditions in Turkey and the conditions for purchasing this type of property. If you need more specialized guidance or consultation regarding buying and selling property in Turkey, you can contact our experts at Home Turkey and benefit from a free consultation.