Problems You may Encounter When Buying an Apartment in Istanbul

Some problems to avoid when buying an apartment in Istanbul

12th August 2022

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Istanbul, Turkey, has become one of the best and most powerful countries in the world in the real estate investment sector, and there are many foreign and Arab investors striving to buy real estate in Istanbul, because of its tourist and economic potential.

Our article today deals with problems you may encounter when buying an apartment in Istanbul, and how to deal with those problems.

Problems when buying an apartment in Istanbul

There are some problems that you may encounter when buying a property or apartment in Istanbul, the following is a list of those problems in detail:

First: the possibility of being exposed to real estate fraud

One of the most important problems that you may face when buying a property or apartment in Istanbul is the problem of real estate fraud, and this occurs when dealing with real estate companies that are not guaranteed or reliable and do not have a good reputation, credibility and transparency.

Hence, some fraudsters take advantage of foreign investors' lack of awareness of the conditions in the Turkish real estate market, the regulations for buying and selling, and the higher and lower values of real estate prices.

The following is an explanation of some real estate fraud patterns or fraud in the field of real estate investment:

1-Offer a damaged property for sale

Here, some real estate fraudsters offer dilapidated real estate to the foreign investor, without clarifying all the costs required to maintain the property, which sometimes are much higher than the return that this property can achieve. Then the buyer is surprised by this situation after the purchase, and finds himself facing a major financial problem, and that he is required to pay large sums of money in order to repair and maintain the property that was just purchased.

2- The property is not listed in the real estate registry

Sometimes some real estate marketers offer an apartment or property that is not listed in the official real estate registry of the state, and this means that the investor will be required to pay additional fees and costs in order to legally register the property, in order to be able to obtain the title deed or "Tapu" of the property and be able to act with it legally and properly.

3- Impersonate the owner

It is one of the most dangerous and most important methods of real estate fraud, where one of them impersonates the property owner, and from here forges documents and papers, which the foreign investor does not discover quickly, as it is only revealed when a specialized employee looks at them.

4- False quotation (price offer)

Some real estate fraudsters take advantage of foreign investors' lack of sufficient information about real estate prices in Turkey, and from here, they offer exaggerated and unreal prices for the property, meaning that they double the price of the property.

Second: Change in the value of the local currency

One of the most important problems that you may encounter when buying a property or apartment in Istanbul is the instability of the local currency exchange rate (the Turkish lira), as it sometimes witnesses some fluctuations when trading against major foreign currencies such as the US dollar and the euro.

But it is worth noting that the Turkish real estate market is related to the strength of the Turkish economy, and that despite the fact that the Turkish economy has been subjected to several recurring crises, they have not affected the economic sector in the country, and the Turkish real estate market does not take long to return to its prosperity.

On the other hand, economic and real estate analysts believe that the fear of devaluation of the local currency (the Turkish lira), is not misplaced, but rather it is an ideal opportunity to buy more and more real estate in Turkey, and it can be considered a golden opportunity to invest in Turkey.

Third: Lack of experience in the stages and steps of buying real estate

The lack of experience in all stages and procedures for buying an apartment in Istanbul is one of the most important problems that you may face, and it is the big problem for foreign investors wishing to buy real estate and apartments in Turkey in general, as the following is an explanation of those steps in detail:

1-You must choose the right property through a trusted and reliable real estate company.

2- You must extract your tax number from the official tax department, and this document is very important as it can be considered as the official identity of foreign projects in front of all government institutions, and you need this number in order to complete any legal or financial transaction in Turkey in general.

3- You must now translate your valid passport into Turkish, and then notarize it at a notary.

4- If the buyer wishes to buy a property that is still under construction, then a contract must be written between the investor and the construction company, and the contract must include all the details related to the property, which includes the following:

-Seller and buyer information.

-The exact date of delivery of the property.

-All materials that are used in the construction of the property.

-An explanation of the taxes and fees required in the case of a delay in delivery.

-It is worth noting that both the seller and the buyer must sign a live signature on each page of the purchase and sale contract, and all photos that explain the design plans of the building or property to be purchased must be attached, and then return to the notary in order to document the sale and purchase contract, and this is in order to guarantee all the rights of the buyer or investor after selling the property.

5- We are here in the step of transferring ownership, which requires paying a tax of 4% of the total value of the property purchased, and this tax is called the title deed tax or the property transfer tax, and in most cases, this tax is divided between the seller and the buyer equally.

Fourth: Lack of complete knowledge of the conditions of the Turkish real estate market

Lack of knowledge of all the necessary information about the real estate investment market in Turkey is the most important problem that you may face when buying a property or apartment in Istanbul, and therefore some investors turn to acquaintances or relatives in order to gather sufficient information about the transactions of the real estate market in Turkey.

In this regard, we would like to emphasize that trying to benefit from the opinions of others is not a problem in itself, but the problem occurs when these relatives are not fully aware of real estate in Istanbul, in terms of the many areas and the varying investment value of real estate in it. Therefore, the best solution is to seek the assistance of a trusted and reliable real estate company with a good reputation, credibility and transparency, in order to determine a plan to buy an apartment in Istanbul in an orderly manner that ends with success, smoothly and effortlessly.

How can you overcome the previous problems?

Of course, foreign and Arab investors wishing to buy a property or an apartment in Istanbul or Turkey in general are looking forward to avoid all the previously mentioned problems, and the following is an explanation of the mistakes that you must avoid when buying an apartment in Istanbul or a property in Turkey in general:

First, stay away from remote areas

When you decide to buy an apartment or property in Turkey, you have to stay away from the remote areas of the city, as some foreign and Arab investors head to these remote areas in order to get a property in Turkey at a low price.

It is known that the closer to the city center, the higher the price of the property, given the availability of all the basic and recreational services that you may need, but the question arises, is it really a good and successful deal?

The answer is that it is not, and this is for the following reasons:

-If you decide to live in your property, which you bought in a remote area for a lower price, you will lose many basic and recreational services as well, including major hospitals, universities, schools and advanced transportation networks. But, if your goal is real estate investment, then the expected material profit return from remote areas is not good, and this is because the demand for it is weak due to the low quality of service facilities there.

But from another economic point of view, some remote areas are considered a golden opportunity for profitable real estate investment in the future, because some of these areas are currently witnessing many major projects that will develop the infrastructure in the region and raise the urban level there.

Second: Do not rely entirely on yourself when buying

If you decide to buy an apartment in Istanbul, you must study and know all the laws, regulations and steps that you must take gradually, and for this, we do not recommend that you ever search for a property on your own, but you must seek the help of a trusted real estate company, or resort to a qualified and experienced real estate agent, in order to ensure that you do not fall victim to any form of real estate fraud.

Third: You have to stay away from the old apartments

Whatever your goal in buying an apartment or property in Istanbul, you should stay away from dilapidated properties or old apartments, because despite the lower price of these old properties than new or modern apartments, they are not a good or ideal option, because they need a lot of maintenance and modification , which means additional costs to the price of the property.

It is worth noting that the rule of staying away from dilapidated real estate is a fixed rule in all countries of the world, not only the Turkish state.

Fourth: You should stay away from buying what you do not have the price for

One of the important tips that you should take into consideration, is not to try to buy a property that is very expensive and not suitable for your financial ability, meaning that you may need to borrow money in order to buy an expensive property, and this is not a good idea, because it is possible that you cannot pay this money that you borrowed, and therefore you get into many legal problems.

In this regard, we would like to emphasize that you should ask fully and clearly about all the costs that you have to pay, so as not to be surprised by costs that you did not consider.

Fifth: You must check the specifications of the property

Before buying a property or apartment in Istanbul, you must check all the specifications of the property, and this is in terms of the following:

-The area of the apartment or property.

-Interior finishing of the property. The number of rooms.

-The view from the property's balconies.

-Exact location.

-What services or facilities are around the property.

Sixth: Avoid buying apartments that are too spacious

If your goal of buying is real estate investment in Turkey, you should avoid buying very spacious apartments and properties, because the demand for them is rather weak, as they are only suitable for large families in terms of the number of individuals.

It is worth noting that it is recommended to choose apartments and real estate with a small or medium area, because the demand for them is very dense, and you have the possibility to sell or rent them quickly and easily, unlike large apartments in terms of space.

This is in addition to the price difference between small and large apartments, as the prices of large properties in Turkey are usually higher than others.

Seventh: It is necessary to take a real estate tour

Before completing the step of buying apartments or real estate in Turkey, you must take a real estate tour in which you can see the property in- kind, and you must visit all the real estate projects available for sale, and clearly see all the features and prices of each property separately, and never be satisfied by watching short videos of the property.

It is worth noting that seeing the property is an in-kind vision that enables you to see the quality of construction, the quality of the interior and exterior designs of the property, and the evaluation of the price of its decorations.

Notes when buying a property in Turkey

In addition to all of the above, there are some notes that must be taken into consideration when buying real estate in Turkey, as follows:

*Ensure the safety of the property from the legal side, and that there are no legal problems such as mortgage or inheritance, because this makes the process of selling or renting the property almost impossible.

*Verify the identity of the property owner, and that he has the absolute right to do whatever he wants to the property.

*Ensure that there is no other buyer of the property or apartment.

What are the services provided by the real estate company?

As we have previously explained the importance of using a trusted real estate company when buying real estate in Turkey, and in this regard, we explain to you what services the real estate company provides in Turkey:

-All the legal and real estate advice you need.

-The company offers you important tips to help you choose the right property for you according to your goals.

-The company helps to reach a suitable price for the property, which means saving a lot of money.

- Some of the company's services are free.

-Real estate companies in Turkey have strong relationships with construction companies and from this point of view help the client or investor to buy a property with modern specifications at an affordable price with the possibility of obtaining discounts.

It is worth noting in this context, that the real estate company must be chosen according to specific criteria; a good reputation for the company and enjoys a wide reputation in the field of real estate investment in Turkey, and you can also see the services provided by the company, and you can also communicate with one of the former clients of the company to get an impression of their opinion of that particular company.

Advantages of buying an apartment in Istanbul

Many investors around the world aspire to buy real estate in Istanbul, precisely because of its many unique features, which we summarize as follows:

-The possibility of obtaining Turkish citizenship through real estate investment, and this is through the purchase of a property or an apartment, provided that the total value of the purchased property is not less than 400,000 US dollars, and pledge not to sell the property for a minimum period of three years.

-The possibility of obtaining real estate residency in Turkey, which is a short-term residency that is renewed every year for the duration of the property ownership.

-Enjoying the distinguished temperate climatic atmosphere of the Turkish city of Istanbul.

-Benefiting from the boom in the Turkish real estate market in Istanbul.

-The possibility of obtaining a high and good profit return due to the components of the tourist city.

-The possibility of obtaining a long-term profit, as the real estate investment in Turkey is long-term.

-Enjoying a tourist stay in Istanbul, where thousands of tourists flock every year from all over the world.

And here, we have come to the end of our conversation about the problems you may encounter when buying an apartment in Istanbul, how they can be overcome, and what you should avoid when completing the purchase transaction.

Binaa Real estate services:

Real estate marketing in Turkey/ Legal and after-sales services /Assistance in obtaining Turkish citizenship

Property management in Turkey / Real estate tours/ Airport reception.

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Problems You may Encounter When Buying an Apartment in Istanbul

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