Last Updated on 19/09/2022
Buying a second-hand property in Turkey: Useful information
The Turkish real estate market has been very active in recent years. In fact, despite the fluctuation of the currency and the changes in the economy, this sector resisted all the variations preserving thus its position as a solid investment sector. Moreover, it is a rich field that has been providing multiple options for investment; and the resale market was one of these advantageous plans. In fact, buying a second-hand property in Turkey is an advantageous opportunity.
Yet, we highly recommend interested investors investigate this market carefully and pay attention to certain facts to avoid unacceptable situations.
Buying a second-hand property in Turkey
What is a second-hand property?
A second-hand property in Turkey is any piece of real estate that has already undergone at least one sale procedure. Contrarily to what many people think, it can be new construction and has never been used or occupied. Besides, it also can be an old property renovated or not. However, a property that has been sold more than once is less costly than a newly-sold property, even though the time between the two sales doesn’t exceed one year. For this reason, purchasing a resale property could be a wise decision for those who have a tight budget.
Important points to consider while buying a second-hand property
People who consider buying second-hand property in Turkey must pay attention to certain points. In fact, they should check if the property is a subject of debt or mortgage. Fortunately, everything regarding the property is mentioned on the title deed. Therefore, before the purchase, they should ask to examine carefully the title deed document where there will be mention of the property has any debts.
Moreover, they should check if the purchase price is the same as the one mentioned in the title deed. Many house owners try to reduce the tax cost by mentioning a less price. This would be a problem, especially for buyers interested in acquiring Turkish Citizenship by real estate investment.
Besides, when purchasing a second-hand home in Turkey, people should pay big attention to the contract. According to Turkish legislation, whether you are purchasing a new home or a resale property, you should confirm the details outlined in the contract before signing it. This is especially important if the buyer does not speak Turkish. That is why we highly recommend foreign buyers to be accompanied by a Turkish speaker preferably with a background and knowledge in the Turkish real estate market.
Moreover, while buying a second-hand house you should check if the property has already a tenant or not. This situation might be beneficial if you think about investment. However, it might be a problem if you will live in it.
Benefits of buying a second-hand property in Turkey
More affordable prices
Compared to newly constructed apartments, second-hand properties have more affordable prices with a good range of options. Therefore, this is one of the key benefits of purchasing a resale apartment. Sometimes, you can purchase a second-hand apartment for 50% less than a newly- constructed one in the same neighborhood.
Fewer taxes to pay
Contrarily to new properties buyer, people who purchase a second-hand property in Turkey will be exempted from paying the VAT tax. Note that the value of this tax varies between1 and18 % according to the property type.
Faster purchase process
Buying a property from a person would be much easier and faster than buying it from a construction company. It would take less time and require fewer procedures.
Statistics of Resale real estate market in Turkey
Second-hand properties in Turkey have always the highest share of the total house sales that occur in Turkey every month. In fact, according to the data released recently by the Turkish Statistical Institute, resale properties constituted 68,4% of the total real estate transactions in Turkey in August 2022. Likewise, it constituted 69,4 % of the total property sales in Turkey in July 2022.
Moreover, according to the same data, second-hand home sales grew from January to August by 19.5%, totaling 667,627, compared to the same time last year.
To conclude, we should mention, that the second-hand property market in Turkey with many opportunities but that requires a deep investigation. Therefore, MEO Consultants experts will provide you with a more detailed series of articles to clarify and analyze the resale market.
Yet, investors interested in second-hand property investment can get a full advisory upon request. They only need to get an initial risk-free consultation.
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