There are three main options for you as a foreigner to secure finance for your property investment in Turkey.
Turkey real estate market is still developing which means foreigners interested in buying property here can still get great prices. When planning the finance for your dream summer home, we recommend looking at the options in your home country first. You can get a mortgage from a bank in Turkey too as a foreigner but it’s advisable to check where the mortgage rates suit you best.
As a foreigner interested in buying property in Turkey, you are eligible to get a mortgage from Turkish bank, too. You can start by visiting the banks that offer mortgage to foreign investors and compare the interest rates. Irrespective of which bank you choose; you can only get as much as 70% of the estimated property value. From a Turkish bank, you can get finance in various currencies like euro, dollars, and pounds. The repayment periods for the mortgage obtained from a Turkish bank can be up to 20 years.
While it’s a great option for investors who can’t get a loan from their home country, the interest rates are pretty high if you get a mortgage in Turkey. This is a factor of great consideration if you’re investing with an aim to earn rental income. There are also certain conditions to be met to secure finance from a Turkish bank. These conditions include having a habitation license which is called iskan in Turkey. Second-hand properties usually come with no iskan making it impossible to apply for mortgage in Turkey. This is the reason investors either go for new build apartments or apply for a mortgage in their home country.
Turkish developers also offer attractive finance terms for buyers who are investing in a project still under-construction. These offers allow the investors to pay with flexibility and without having to get a loan from any bank. The buyer needs to make a 40-50% down payment and then pay rest of the amount over few years in easy installments. This is a great way to finance your investment without paying any interest rate while also getting some great off-plan prices.
For Further Information Contact Us.