Buying real estate in Turkey offers the flexibility of payment in cash or in installments, an option provided by the Turkish government to encourage foreign investment in the real estate market. The installment method is particularly advantageous for those who may not be able to pay the full price upfront or who prefer to spread their financial obligations over time.
Here are some key points regarding installment plans for buying real estate in Turkey:
Installment Payment Terms
Initial Payment: A down payment is usually required to secure an installment plan. This initial payment typically ranges from 35% to 50% of the total value of the real estate.
Duration: The installment period can vary depending on the developer or construction company. Options can range from 12 to 48 months, allowing buyers to select a payment plan that aligns with their financial situation. However, for properties under construction, payment schedules are often tied to the project's completion date.
Discounts: Some developers offer discounts for buyers who choose the installment method, although these are generally modest, often not exceeding 5%.
Title Deed Transfer: The buyer will not receive the title deed until all installments have been paid in full. The transfer of title will proceed after the final payment has been made.
Considerations for Choosing Installments:
Financial Planning: Installments are suitable for those who cannot pay the full price at once or prefer to keep funds available for other investments or businesses.
Immediate Residency Needs: For buyers who need a residence quickly but cannot immediately secure the full property price, installment payments offer a viable solution.
Investment Strategy: Investors may choose to buy more than one property through installments, diversifying their investment rather than allocating all funds to a single asset.
Alternative to Renting: Buying on installment is a strategic move to eventually own a property instead of bearing the ongoing cost of rent, thus achieving home ownership while residing in the property.
Conclusion: Investing in Turkish real estate via installment plans can be a strategic and financially savvy choice for many foreign buyers. It allows for greater financial flexibility, enabling investors to maintain liquidity while gradually securing ownership of a property. Each buyer's circumstances are unique, so it is vital to consider personal financial situations, investment goals, and the specific terms offered by developers when choosing between cash and installment payments.
