Purchasing property in Turkey presents a valuable opportunity for those looking to invest. However, it’s crucial to understand several key factors before making a decision. Vladlena Baranova, Lawyer, AML Compliance officer at Immigrant Invest, certified CAMS specialist, outlines five important considerations to help you make an informed choice considering citizenship by investment in Turkey.
#1. Determining the Purpose of Investing in Turkish Property
Are you planning to live in the property, rent it out, or use it as a home for holidays? Or maybe you want to know how to get a Turkish passport by real estate purchase?
Each purpose has different requirements:
- for living, you might prioritise comfort and proximity to amenities;
- for renting, consider locations with high demand;
- for a vacation home, scenic areas might be preferable.
Once you’ve established your goals, you can start filtering your choices. For example, if you plan to live in the property, you might look for a quiet neighbourhood with good schools and parks. If you want to rent it out, you may focus on properties near universities or business districts.
For investment property in exchange for citizenship, it is important that the property meets the requirements of the government program.
Your goals might evolve over time. A property that suits your current needs might not be ideal in a few years. Think about potential changes in your lifestyle, such as starting a family or retiring, and how they could impact your property requirements.
#2. Learning About the Turkish Real Estate Market
The Turkish real estate market is ever-evolving, with frequent shifts and updates. It’s essential to keep an eye on market reports and news sources to stay informed about the most recent developments. Follow reputable real estate websites and subscribe to newsletters to get the most current information.
Investigate different areas in Turkey. Explore the various property types on the market and weigh critical factors such as location, pricing, and the potential for value growth. Some of the most sought-after investment regions include:
- Istanbul,
- Antalya,
- Bodrum.
Look at areas with potential for growth. Locations undergoing infrastructure improvements or experiencing a surge in tourism often present promising investment opportunities. For instance, properties near new airports or major highways might appreciate faster than those in more remote areas.
The Turkish economy can influence property prices. Be aware of factors such as inflation, interest rates, and government policies that might impact the real estate market. A stable economy usually means a more predictable property market.
#3. Getting Professional Advice
Choose an agent with a solid track record and positive reputation. It’s crucial that they also possess a thorough understanding of the legalities involved for foreign buyers.
Ensure the agent has a good understanding of the legal requirements for foreign buyers. They can help you with property registration, taxes, and other legal obligations. It’s also wise to consult a lawyer who specialises in Turkish real estate law to avoid any legal issues.
Expert guidance can prevent you from making typical errors, like:
- paying too much for a property;
- purchasing in a region with limited growth prospects.
Professionals can also aid in conducting thorough due diligence, verifying that the property has clear title deeds and is free from legal issues.
Consulting a financial advisor can provide clarity on the financial aspects of your investment, helping you make informed decisions. They can provide advice on financing options, tax implications, and long-term financial planning related to your property purchase.
#4. Negotiation
In Turkey, property prices are often negotiable. Feel confident in requesting a lower price or more favourable terms. Often, the initial asking prices can be higher than the actual value, leaving space for negotiation.
Being well-informed about the market value of properties in the area will provide you with a strong position during discussions. Compare prices of similar properties and use this information to justify your offers.
Negotiation approaches differ across cultures. In Turkey, establishing a strong rapport with the seller is crucial. Demonstrating respect and genuine interest in the property can significantly enhance the negotiation process.
#5. Considering the Cost of Living in Turkey
Consider monthly costs such as:
- property taxes;
- utilities;
- maintenance.
These can vary significantly depending on the location and type of property.
Ensure your budget includes these recurring expenses It’s important to ensure that owning a property in Turkey remains affordable over the long term. Include a buffer in your budget for unexpected costs, such as increases in rental fees.
Consider how your lifestyle might change. Will you need to learn the local language or adjust to different cultural norms? Immersing yourself in the local culture and becoming part of the community can significantly improve your daily life.
If you intend to reside in Turkey, it’s essential to evaluate the quality and availability of healthcare and education services. Investigate nearby shopping centres, clinics, and schools to confirm that they align with your expectations and requirements.
How to Invest in Turkish Real Estate and Get Citizenship
Investment requirements. To be eligible for Turkish citizenship through real estate investment, you must make a minimum investment of $400,000 in property. This investment needs to be held for a period of at least three years.
The application process involves several steps, including:
- Obtaining a residency permit.
- Making the investment.
- Applying for citizenship.
A lawyer can help streamline this process. Make sure all paperwork is correctly filled out and thoroughly checked to prevent any potential hold-ups.
Advantages of citizenship. Obtaining Turkish citizenship comes with numerous perks, such as visa-free access to over 120 countries, a tax-friendly environment, and the opportunity to reside and work within Turkey.
Conclusion
Before buying property in Turkey, define your goals, learn about the market, get professional advice, be prepared to negotiate, and consider the cost of living. These steps are crucial to making a sound investment. Dedicating time to in-depth research and gaining a comprehensive understanding of the market will lay a strong foundation for your property purchase.
