Is it worth buying property in installments in Turkey?

Buying Turkish real estate in installments is a common practice, but foreigners often do not even know about it and do not understand how it works. Let's try to correct this omission and consider the issue of purchasing real estate in installments from the buyer's perspective.

Fundamental features: why do Russians buy housing in Turkey in installments?

The installment plan provided by the developer is the optimal, and often quite profitable, way to purchase real estate. The fundamental, classic benefit of installments is that you do not need to pay the entire amount at once: while construction is underway at the site, you systematically pay the money, ultimately receiving real estate from the primary market.

The installment period may vary depending on at what stage of the construction of the project you contacted the developer. Please note that we will be talking about short-term installments, and not about a full-fledged mortgage for decades. As a rule, 30% of the final cost will need to be paid immediately.

Housing in Turkey in installments: main advantages

This process for purchasing a home provides several significant benefits to the buyer. The most important are:

1. Extreme simplicity of the transaction. A passport and a down payment are all that is required to complete the transaction.
2. No age restrictions. If you are an adult, then this is enough.
3. Loyal attitude of the developer to the buyer. There is almost always the opportunity to choose the frequency and size of payments; the developer is ready to accommodate you halfway in most other issues.

Well, and perhaps the most important advantage of installments, unlike any type of loan, is that the buyer will not have to overpay for the purchase.

Installment plan is a clear and simple, as well as convenient and profitable system for purchasing real estate in Turkey.

What is the fundamental difference between a bank loan and installment plan?

It is important not to confuse mortgage and installment plan. The fundamental differences are as follows:

1. Installment plans can only apply to primary real estate.
2. An installment plan, unlike a mortgage, is issued only for the duration of the construction of the facility. There are exceptions, but they are rare.
3. Interest. Perhaps the most eloquent indicator of the difference between a loan and an installment plan. You use it without interest, and the interest rate on the loan will be in any case. The choice is obvious.
4. Preparing for the deal. In the case of installment plans, everything is really much simpler compared to a mortgage. If, before issuing a mortgage, the bank carefully checks all participants in the transaction, then the transaction with the developer reduces most formalities to nothing, limiting itself to only the necessary minimum.
5. Amount of payment. Based on current market realities, the bank will be able to offer only half of the cost of housing stated in TAPU, and it is often lower than the real market price tag. That is, at best, you will receive only 50% of the required amount from the bank. In the case of installments, you will pay approximately 30% of the required amount at once, but the buyer can always agree on the size and frequency of the remaining payments with the developer, while counting on a loyal attitude on the part of the developer.

Other reasons to use installment plans

The key motive that encourages people to use installment plans to purchase housing in Turkey is the opportunity to fix the cost of housing and “ground” their own financial assets.

The installment plan is not very suitable for those people who need housing right now, since it is issued for the period of construction, but it is an ideal solution for investors. This is convenient, since housing begins to make a profit immediately after putting it into operation, despite the fact that a mortgage in a similar situation, at best, would simply be repaid through rent.

However, considering installment plans only as a convenient investment tool is not entirely correct. Even if you are not interested in the field of real estate investment, but you are interested in the possibility of purchasing housing in Turkey, then you should definitely consider the option of installments. Although it is short-term, which is not always convenient, it also has a lot of significant advantages, which have already been discussed above.

Finally, installment plans are available to foreigners and do not provide for any impossible, categorical requirements: everything is quite obvious, simple and does not require a lot of time for practical implementation. If the purchase of real estate in your case is not prohibited by the current laws of the country, then no difficulties will arise. Still have questions? Contact us and receive detailed, professional answers from our portal right now.