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Buying Real Estate in Turkey - A Buyer's Guide

| Essex Magazine

Buying Real Estate in Turkey - A Buyer's Guide

From bustling metropolises to idyllic coastal towns, Turkey offers a diverse range of locations that cater to various preferences and investment goals. When it comes to overseas property investment, Turkey has emerged as an enticing destination for buyers seeking lucrative opportunities in property. ... In this buyer's guide, we will explore some of the best places to buy property in Turkey, providing valuable insights to help potential buyers make informed decisions and capitalize on the thriving Turkish property market.

Location is crucial for successful property investment in Turkey. Analyze market trends and identify areas with growth potential. Consider infrastructure, amenities, and accessibility. Familiarize yourself with the legal framework and seek expert advice. Make an informed decision for a rewarding investment experience.

Investing in property in Turkey offers a variety of options to suit different preferences and investment strategies. Whether you're a seasoned investor or a first-time buyer, there are avenues that cater to your specific needs. DE COSTA GROUP, a renowned Real Estate consulting company, can guide you through the process and provide expert advice tailored to your investment goals. Choose your investment path wisely in Turkey's dynamic Real Estate market. Research, assess risk tolerance, and align strategies with goals. DE COSTA GROUP can provide professional guidance for successful investments. Capitalize on Turkey's potential with confidence.

Turkey is an excellent choice for Real Estate investment. Its strategic location, robust economy, affordable property prices, and thriving tourism industry make it an attractive destination for savvy investors. With favorable regulations and incentives for overseas buyers, Turkey offers promising opportunities for capital appreciation and long-term returns.

Turkey offers a diverse and thriving property market with ample investment opportunities. With its strategic location, growing economy, affordable prices, and robust tourism industry, Turkey is an attractive destination for investors. By conducting thorough research and seeking professional guidance, investors can capitalize on the potential for long-term returns and success in the Turkish Real Estate market. Now is the time to explore and seize the lucrative opportunities that Turkey has to offer.
When to Sell an Investment Property

| Financial Samurai

When to Sell an Investment Property

Are you wondering when to sell an investment property? Overall, the best holding period for Real Estate is forever. By not selling, Real Estate owners ride the unstoppable inflation wave, which has increased since the pandemic began. Inflation is still running high. Inflation helps boost rents and property ... prices. By holding onto your Real Estate forever, you never have to pay any onerous commissions and long term capital gains tax. Selling commissions are stubbornly high. After a tremendous run up in property prices, more people starting to inquire when to sell. As for your primary residence, try to hold on for as long as possible.

There are some key life events that warrant the re-evaluation of owning investment properties: a new family member, a death in the family, a terrible accident that requires extra care, an unwanted layoff, or a job relocation to name a few. Major life events may require more of your time or money. If you're unable to work, some life events may necessitate that you keep your rental property for semi-passive income. A full-time job is far superior to rental income once it gets going due to no maintenance, no property tax, no tenants to deal with, and unlimited scale.

Nobody should have more than 50% of their net worth in one asset class. This is especially true if debt is used to acquire the asset. As you inch towards financial independence, it's better to have three or four main asset classes that each count for 25% - 33% of your net worth. Diversify to protect your capital. You should consider selling your rental property when you have crossed the tax-free profit threshold. If you feel you have a high chance of making a greater return on a different investment with less risk, locking in your gains by selling your rental property may be a good idea.

Certain areas are more prone to natural disasters like hurricanes, earthquakes, flooding, and fires. Study your area's natural disaster history. If it's been a while since a natural disaster has struck, maybe you should sell.

After potentially decades of ownership, your may have accrued a massive amount of equity in your investment properties. If so, there's a chance you might die with too much assets. If so, that would mean that you wasted a lot of time, effort, and stress in your younger years worrying and working for money. You could have relaxed and enjoyed life more! Luckily for you, it's not too late to do just that. Why not sell one of your investment properties and enjoy the proceeds? You can also use the money to help someone else more in need.

If you're over the age of 60, you're in the last third of your life. It's best to decumulate and spend down your fortune rather than keep on trying to make more. You don't have to spend all the proceeds. Maybe your estate will go above the estate tax threshold, which means your estate will have to pay excessive taxes. What a waste. Find ways to enjoy your wealth before it's too late!
Real Estate in Turkey - Laws and Regulations

| Lexology

Real Estate in Turkey - Laws and Regulations

Legal System
Based on civil law, Turkey's legal system comprises a hierarchy of codified rules, resembling the legal systems of continental Europe. The Turkish Constitution is the supreme law of the land, followed by codes issued by ... Parliament and decrees issued by the President, and finally secondary legislation such as regulations, by-laws and communiques, provided that they do not conflict with a superior law in the hierarchy.

The Turkish court system functions as an inquisitorial system. It is the judge's duty to inquire and rule on the case. Judges may hear witness statements and request evidence to ensure a fair judgment. Article 2 of the Turkish Civil Code sets out the general principle of objective good-faith that the courts rely on to rule in equity.

Preliminary injunctions may be granted subject to certain conditions prescribed under the applicable legislation (e.g. risk that a right might be materially endangered or become impossible to exercise).

Oral contracts are binding under Turkish Law unless the law expressly states otherwise. Laws applicable to Real Estate are national in scope.

Land Records
The Turkish land registry system is a reliable and secure system, whereby every Real Estate transaction is officially registered. Transfers of title must be registered at the land registry to gain effect. Similarly, all interests in real property, including mortgages, usufruct rights, rights of first refusal and rights of repurchase must be registered to ensure validity, enforceability or both. Land registry records are public; therefore, the rights of third parties who acquire ownership or any form of interest in the Real Estate's land registry records are respected. Beyond the official ledgers, information regarding the legal status of real properties (ownership rights, rights registered in favour of third parties, encumbrances, etc) is also maintained in a computer system called Takbis. The public may not access Takbis, but property owners can view their property through their own accounts on the government's electronic database.

Registration and Recording
A sale of property can only be completed at the relevant land registry with both the seller and purchaser present. At the time of the acquisition, a title deed fee at a rate of 2 per cent is applicable over the purchase price for the buyer and seller separately, but the parties may agree otherwise. The fee must be paid to the tax office before the transaction.

VAT must be paid for the sale of real property owned by companies, real person merchants or both.

Corporations are exempt from VAT and 75 per cent of corporate tax, provided that the property is kept for two years and selling real property is not the corporation's field of business. There may also be favourable tax regimes under double taxation agreements.

Foreign Owners and Tenants
Foreign companies established abroad are not entitled to buy real property or rights in rem in Turkey unless there is a special law allowing otherwise (such as the Petroleum Law, Law on Encouragement of Tourism or Industry Zones Law).

Turkish companies in which foreign shareholders directly or indirectly hold more than 50 per cent of the shares or management control are subject to an approval procedure (with the Governorships, General Staff, and General Directorate of Security Forces) for the acquisition of real property or limited rights in rem. If a Turkish company becomes a foreign capital company as a result of a share acquisition and such company owns real property or limited rights in rem, a similar post-closing permission process must be followed to notify the General Directorate of Foreign Investment of the share transfer.

As for foreign individuals, the President determines the countries whose citizens can acquire Real Estate and limited real property rights in Turkey. However, the total size of the land acquired in Turkey by a foreign individual cannot exceed 30 hectares. There is also a limitation up to 10 per cent of the total surface area of the relevant district per foreign individual.

Legal Liability
The seller has statutory defects liability for defects and deficiencies in the property. There is a defined statutory limitation period for defects liability relating to immovable property sales (one year, five years and 10 years depending on the asset type and the applicable provisions).

An owner can incur criminal, civil and administrative liability for other matters relating to the property even if the matter occurred before the property was purchased. Building owners have strict liability and whoever holds the title when the damage occurs will be held liable. A tenant can also be held liable for damage they inflict. Lenders do not bear any liability.

Choice of Law
Under Turkish Law, the governing law for disputes related to rights in rem over properties and agreements related to Real Estate and the use thereof (i.e. lease agreements, donation) is the law of the country the property is located. Hence, if the property is located in Turkey, the property right, rights in rem and legal transactions concerning the property (ie, formal requirements to purchase property) and agreements regarding use of the real estate must be subject to Turkish Law.

Jurisdiction
For Real Estate disputes, administrative or civil courts have jurisdiction depending on the nature of the dispute. Administrative courts of first instance have subject-matter jurisdiction over real-estate disputes concerning immovable property, such as development or zoning, expropriation, demolition, occupation, land allocation, licence or authorisation, or any rights bound to these acts or in actions concerning public domain. Civil courts of peace hear civil-law disputes including lease agreement or other agreement disputes, distribution of rights, elimination of joint ownership, protection of possession of immovable property, etc.

Under Turkish Law, the plaintiff and defendant must be included in the petition to initiate a lawsuit. There is no obligation to include any third party.

Extra-jurisdictional services can be made to real persons or legal entities with foreign addresses via the international service of process rules under Turkish Law, with the involvement of the Turkish Ministry of Justice.

A party does not have to be qualified to do business in Turkey to enforce remedies.

Forfeiture
The government may seize real property without compensation as a result of criminal investigations or actions.

Ownership and Occupancy
Under Turkish law, the most basic category of property rights is ownership, which gives the property owner the right to permanently use, benefit from, and dispose of a piece of property.

Servitude rights are considered limited rights in rem, as they provide the rights holder more restricted power than ownership rights. The most common servitude rights are usufruct rights and construction rights. Servitude rights on real property may only be established through registering the right with the relevant land registry. As with ownership rights, servitude rights can also be enforced against third parties.

Turkish law also recognises condominium regimes, joint (common) ownership and cooperative ownership.

Owing to its scope and nature, the Turkish Code of Obligations applies to almost all commercial and residential leases regardless of whether the property is residential or commercial.
Best Time to Buy an Investment Property

| Norada

Best Time to Buy an Investment Property

Investment properties can be an excellent way to build long-term wealth and generate passive income. However, timing is a critical factor to consider when buying an investment property. Purchasing at the wrong time can lead to reduced returns, lower rental yields, and potential losses. So when ... is the best time to buy an investment property?

There is no one-size-fits-all answer to this question, as the optimal time to buy an investment property varies depending on different factors such as location, market conditions, and personal circumstances. However, here are some general tips that can help guide you in making the right decision.

Firstly, consider the current market conditions. Typically, the best time to buy an investment property is when the market is experiencing a slowdown or a dip in prices. During a downturn, sellers are often more motivated to sell, and properties may be available at a lower price, making it an opportune time to make a purchase. In contrast, if the market is experiencing a boom, you may face stiffer competition and higher prices, making it more difficult to find a good investment opportunity.

Another factor to consider is the interest rate environment. When interest rates are low, it can be an advantageous time to take out a mortgage as you may be able to secure a lower interest rate and reduce your borrowing costs. However, if interest rates are high, you may want to hold off on purchasing an investment property until they come down, as higher rates can increase your borrowing costs and reduce your potential returns.

In addition to market conditions, personal circumstances can also play a role in deciding when to buy an investment property. For example, if you are in a stable financial position and have a large down payment, you may be able to purchase an investment property even during a market upswing. On the other hand, if you are just starting out, it may be better to wait until you have more savings and a better understanding of the market.

Location is another essential factor to consider. Different markets have unique cycles, and what may be the best time to buy in one area may not be the same in another. Therefore, you need to research the local real estate market and determine the best time to buy in that specific location. For example, if a particular area is undergoing significant infrastructure development or regeneration, it may be an ideal time to invest, as property values could rise due to increased demand.

Lastly, consider your investment goals and strategy. If you plan to hold the property for the long term, the timing of your purchase may be less critical, as the property's value is likely to appreciate over time. However, if your investment strategy involves flipping properties for a quick profit, it may be more critical to time your purchase correctly.