Affordable Housing in Turkey for Those Who Are on a Budget
Are you on the lookout to buy cheap flats in Turkey? Maybe you’re wondering how to go about it, where to go, and how much to budget.
Well, you’ve come to the right place. We’ll answer all of those questions here in this guide. And If you have additional questions, please read more on Turk.Estate, where you’ll find more information (like the average cost of a standard house in Turkey).
But without further ado, let’s explore how to find and purchase affordable housing in Turkey.
Prepare your budget
A critical part of preparing your budget is to have a price or average price in mind. There are many benefits that you can earn from this, including:
Clarity as to how much you need, regarding your taste in property, the choice or category of housing you want, the location, etc. All of these will factor into the amount necessary to pull through a sale/purchase of a property, and knowing the average cost will give you ideas on how to tackle it.
Clarity as to procedures – another advantage of knowing what you want and how much it will cost is that it allows you to decide on how you will be able to pay it. Lately, there are several measures that you can use to purchase a property. You can use personal savings or take a loan; alternatively, you can access a mortgage or some form of down payment.
The average cost of a family-sized home in Turkey as of 2023 is between $80,000 to $90,000. Most properties hover around $680 per square meter.
The higher the property quality, the higher the price, so you may have to keep that in mind. But there are unique payment plans you can utilize in Turkey to help you buy your dream home.
Buying property on a budget
Here are some of the most common alternative payment methods to cash, which can aid and make property purchases much easier in Turkey.
Down payment plan
While considering which company or developer to work with, you may use a down payment method.
Interestingly, many developers use this method in the Turkish real estate market. The gist of this kind of payment plan is this: you pay a deposit sum at the beginning of the contract, ranging from 15% to 30% of the final contract sum.
The benefit of this payment mode is that it allows you to pay the remainder in agreed bits or piecemeal across a period. You may agree to pay the remainder across a year or two or more.
The downside of this kind of payment is that it is prone to misunderstandings. For example, there may be clashes regarding the use of the property between the periods the buyer occupies it up to the year they finish paying it. There may also be misunderstandings about the payment installments, events of delay, etc.
Lastly, they may carry higher interest rates. The best way to forestall such issues is to have a comprehensive contract between you and the seller covering all possible and foreseeable challenges and events that are not reasonably foreseeable.
You should consult a lawyer for a comprehensive, watertight agreement to clarify all contract terms for all parties involved.
Construction plan
This plan allows you to make payments piecemeal as the construction project advances. Here, you agree to make some form of deposit or first level of payment, and then you must advance the other payments as the building advances into new levels.
Where it is a skyscraper, for example, you may be required to make payment as each floor is completed. Where it is a single duplex, the requirement might be that you make certain installments when the building gets to the roofing stage, etc.
The good part of this kind of arrangement is that it is dependable. An estimate of the periods the property will attain certain levels will be made, and you can plan accordingly. It also buys you some time to source funds.
The negative part of this agreement is that it may be costly, and there may be concerns about the project’s durability. Unlike a complete project, you only have the reputation of the contractor to hold as an assurance that quality will never be compromised along the way.
More so, construction plan payment styles are often short-term and payable within 3 - 5 years or less. This may not be as flexible for many people.
Combos
Lastly, it would be best if you did not rule out the possibility of having a flexible payment plan. Many developers and property experts offer properties with varying levels of flexibility.
You can have a construction plan and a down payment plan merged. Unique plans are sometimes drawn up to support low-budget buyers now and then.
How to get a flexible property plan
A common saying goes like this – ‘he who asks questions will not miss his way.’ As you take steps to purchase a property in Turkey, ask crucial questions about financing and payment options. This is where your negotiating power is at its height, so utilize it.
Ask the developer for new and unique concessions, request and negotiate how far they are willing to go, and your options. Compare the replies you get from many developers and sellers and choose the one that is most accessible.
Where a special plan is being drawn for you, please insist that it be reflected in writing and involve your lawyers in the whole process to prevent either party from reneging on their promise.
