When it comes to property investment, Turkey can be a great place to start. It has a growing economy and is still relatively affordable when compared to other European countries. However, just because Turkey is a good investment doesn’t mean that you can take any risks when purchasing property. In this article, we’ll go over some of the most common pitfalls that international investors make when buying property in Turkey.
Not Knowing the Local Real Estate Laws
Some states have more restrictive real estate laws than others. If you don’t know the local Turkish real estate laws in your area, you may not be able to buy or sell a property as easily as you would like.
For example, some states require that all real estate transactions be recorded with the state government. If you don’t record a transaction, you may not be able to sell or buy a property in that state.
Not Doing Your Homework on the Area
When you buy property in Turkey, it’s important to do your homework. There are many pitfalls that can occur if you don’t take the time to research the area you’re buying into.
One common mistake people make is not doing their research on the local economy. If the local economy is in a downturn, your property value may decrease. Similarly, if the area has a high crime rate, you may want to avoid buying property there.
Not Speaking to an Expert About Turkish Property Before Buying
When buying property in Turkey, it is important to be aware of the pitfalls that can occur. Not speaking to an expert can lead to major problems down the line.
Not speaking to an expert about Turkish property can lead to a number of problems. For example, buyers may not understand the ins and outs of Turkish real estate law. This can result in them ending up with a property that is not legally theirs or they may have to pay heavy fines if they sell the property later on.
Not Understanding the Turkish Banking System
Turkish banking is similar to other banking systems in that banks make loans to businesses and consumers. However, there are a few key differences that may affect your ability to open a bank account or get a loan in Turkey.
Turkish banks are generally considered to be more conservative than U.S. banks, which may mean that you’ll have a harder time getting a loan or securing an account. This means that if you’re trying to start a new business, you may not be able to get the financing you need from a Turkish bank.
Not Being Prepared for Potential Repairs or Renovations
When buying property in Turkey, it is important to be prepared for potential repairs or renovations.
Properties in Turkey are oftentimes subject to the elements, including weathering and salt damage. Additionally, they can be subject to repairs or renovations that may need to be done in order to keep them in good condition.
Forgetting to Factor in Inflation When Calculating How Much Money You’ll Need to
When buying property in Turkey, it’s important to remember to factor in inflation. Property prices have gone up a lot over the years, and you may not be able to afford the same property that you bought a few years ago.
Not Reading the Contract
One example of a mistake people make when buying property in Turkey is not reading the contract correctly. Sometimes sellers will include unenforceable clauses in their contracts, which can make it difficult to get your money back if you don’t like the property. Other times, buyers will sign contracts without knowing what they’re agreeing to. It’s important to be aware of all the terms of a contract before you sign it so that you can make an informed decision.
Not Checking the Property Status
When buying property in Turkey, it is important to check the property status. This can be done by contacting the local municipality or estate agent. If the property has been abandoned or the title is disputed, you may not be able to purchase it.
Ignorance of the Geography
When people buy property in Turkey, they often make common mistakes that can lead to trouble. One common mistake is not knowing the geography of the area they are buying.
Property in Turkey is often located in risky areas. For example, many properties near the Syrian border are vulnerable to attacks from Syria or terrorist organizations. Properties near the Iranian border are also at risk of conflict.
By taking these common mistakes into account, buyers can avoid problems when purchasing property in Turkey.
Assuming the Owner Will Repair or Maintain the Property
In many cases, the owner may not have the resources or inclination to fix or maintain the property. This can lead to a number of problems, including damage to the property itself, water leaks, and infestations. It is important to do your research before making an offer on a property, so you are aware of any potential issues.
Not Knowing the Tax Laws
For example, many people assume that they can deduct all of their expenses when buying property in Turkey. This is not always the case. In fact, most expenses related to buying or owning property are considered taxable income. This means that you will have to pay taxes on these expenses, which can add up over time.
By knowing the tax laws and avoiding common mistakes when buying property in Turkey, you can make sure that you’re getting a good deal and that you’re complying with all of the legal requirements.
Failing to Take Into Account Risk Factors
Failure to take into account risk factors can lead to a loss of money or a harmful outcome. For example, if a business does not properly assess the potential for problems with its suppliers, it may end up paying for products that are not of high quality or that do not meet its expectations. If a company does not properly assess the potential for theft or vandalism, it may end up losing valuable items or having to pay for damages. In both cases, the company has suffered a financial loss as well as an adverse physical or emotional outcome.
Not Preparing for a Possible Emergency
One of the most important steps you can take to protect yourself and your family in case of an emergency is to have a plan. Make sure you are familiar with the steps you need to take to evacuate your home, secure your property, and gather supplies.
Not Considering Pre-Purchase Inspections
When purchasing property in Turkey, it is important to be aware of some of the common mistakes that people often make. One mistake that people commonly make is not considering pre- purchase inspections.
Pre- purchase inspections are a great way to ensure that you are getting the most out of your property. They can identify any potential problems with the property before you even buy it, saving you time and money.
Being Overly Extensive with Repairs
When buying property in Turkey, it is important to be aware of the common pitfalls that can occur. One common mistake that people make is being overly extensive with the repairs that they make. This can lead to inflated repair bills and increased costs down the road. It is also important to understand the local laws in Turkey when it comes to repairs. Certain repairs, such as replacing a roof, may not be allowed without prior authorization from the government. Being proactive and understanding these laws can save you a lot of money in the long run.