Select one of the frequently asked questions below to learn more about buying, selling, and renting real estate. Also, begin to think about important things to consider when diving into your real estate search.
Question about selling
Can a home depreciate in value?
Generally, real property never depreciates in value, or more so, it is not very common for property to depreciate. This is why it’s a great investment. Make sure you carefully consider location and community when choosing a home, it can effect the homes future value greatly.
If you are in a newly developed area, do some research on the construction of the surrounding areas being developed to determine if they may effect your homes value.
Is an older home as good a value as a new home?
This is really just a matter of preference, but both newer and older homes offer distinct advantages, depending upon your unique taste and lifestyle.
Older homes can generally cost less than new homes, however, there are many cases where new homes can also cost less then older homes. Most new homes will not have any backyard landscaping and some don”t include any front landscaping either. With an older home, the landscaping is normally already completed and could have 10”s of thousands of dollars in landscaping done, which is included in the purchase price.
Taxes on some older homes may also be lower. Some people are charmed by the elegance of an older home but shy away because they”re concerned about potential maintenance costs. Consider a home warranty to get the peace of mind you deserve. A good Home Warranty plan protects you against unexpected repairs on many home systems and appliances for a full year or more after you move in.
In a new house, you can pick your own color schemes, flooring, kitchen cabinets, appliances, custom wiring for TV”s, electrical, computers, phones and speakers, etc., as well as have more upgrade options. Modern features like media rooms, extra-large closets and extra-large bathrooms and tubs are also more attainable in ground-up construction. In a used home, you rely largely on the previous resident”s tastes and technological whims, unless you plan to farm thousands into a remodeling and rewiring.
New-home designers can use new building materials such as glazed Energy Star windows, thicker insulation and other technology that will lower future energy costs for the owner. Most states now have minimum energy-efficiency requirements for new construction. Kitchens and laundry areas in new homes are designed to house more efficient energy-saving appliances. Older homes, unless they have undergone an energy retrofit, usually cost much more per square foot to air-condition and heat.
Builders have to follow very strict guidelines in new-homes and additions, especially in the West and Northwest, where earthquake safety standards must be observed. In general, new homes are usually more fire-safe and better accommodating of new security and garage-door systems.
Older homes can be better judged for their quality and timeless beauty. New homes that now possess a smooth veneer might reveal the use of substandard building materials or shoddy workmanship over time.
As you can see there are advantages and dis-advantages to each, but it really comes down to what fits you and what you are looking for in a home.
What is a broker?
An agent who is authorized to open and run his/her own agency. All real estate offices have one principal broker.
Why would you invest in real estate in Bodrum?
Where is Bodrum / Is there an Airport?
Bodrum City on Turkey’s Aegean coast is an easily accessible holiday destination offering attractive beaches, suberb dry climate, trendy nightlife and a variety of cultural activities. Bodrum has been the leading holiday destination since the 60’s for affluent Turks and foreign visitors. Primary overseas access to Bodrum is through Milas / Bodrum International Airport, which is served daily from a variety of European destinations and İstanbul.
What is the health service like in Turkey? Are foreign insurances accepted?
Turkey’s health care is very good and very fast comparing to many countries in Europe.
Foreign insurances are accepten in private hospitals in Turkey.
What are the steps of Buying a Property in Turkey?
Bodrum is incredibly popular with both holiday homeowners and expats over the years. Not only does the country have a rich, ancient and interesting history with an impressive and attractive cultural heritage, but property investors are attracted by the beautiful weather, stunning coastlines, colorful waters and hidden locations.
It is also much easier to buy a home in Turkey than it is in many other European countries, with its fast turnaround being an attractive prospect to investors all over the world.
Property Buying Procedure
Of course, to begin with, you need to find a property that you want to buy. For our British buyers, buying a holiday home is a lifestyle choice, most people tend to buy a relatively modern property in Turkey and the quality of new-build homes has improved drastically in the past decade. Brand new apartments and villas are available with a more contemporary open plan style, some with beautiful outdoor areas and swimming pools. Whatever kind of property or location you are looking for, we have something for everyone.
Once you have found your dream holiday home, we will draw up a contract with you detailing the agreed terms and conditions of the purchase. This will include the amount of your holding deposit, a date agreed where you will pay a full deposit and the final balance cost of the property. A legal translator appointed by government notary offices will be present for the duration of the process so that you fully understand everything.
The legal translator then takes the buyer’s passport(s) to the Notary for translation. This is necessary for security and property location checks. The translation takes a maximum of half an hour, after which the passport(s) will be returned to the buyer.
Our office consultants and will then oversee the applications for the TAPU (title deeds) and the Iskan (habitation licence) as well as dealing with contracts. The Iskan is a technical passport for your real estate which holds information about your property such as the number of floors and indoor infrastructure. The TAPU is an official document that shows property ownership. This document will include the owner’s photo and an official stamp and signature. It is vital that a TAPU is checked for authenticity by making sure that the name on the TAPU matches the sellers. We will check all of this for you as well as making sure that the TAPU does not come with any debts and matches the property in question.
Seller and buyer will then sign the contract written up by us.
On completion of the contract, you will be required to leave a holding deposit to secure the property (Minimum holding deposit accepted is GBP 2.000 or equivalent), which is usually %5 of the property purchase price.
In order to acquire the title of a property, an application has to be submitted to the local Land Registry Office in which the property is situated. After carrying out necessary searches and checks for the above-mentioned requirements, the transfer of the title is done by the Land Registry Office. In Turkey, it is legally compulsory for both sides (the seller and the buyer) to be present at the entry in the property register during the transaction, the proofs or the documents concerning the transfer of the full purchase price into Turkey must be presented to the Land Registry Office.
It is at the point of deed transfer that all taxes and charges will be paid. You will need to pay a buyer’s fee which will be set at 3% of the value of the property. You will also need to pay the purchase tax (stamp duty) which amounts to 3% of the assessed value of your property. The assessed value is normally around 50 to 60% of the purchase price, so your purchase tax will be 3% of 60% of the value of your property. This tax goes to the local municipality (council).
As a new property owner, once the purchase process is complete, you will receive your TAPU (title deed). You will need to register with the local tax office and open a Turkish bank account which is compulsory in order to register a property in Turkey. In order to open a Turkish Bank account as well as your original copy of your passport, you will also need to provide another form of identification with your home address in the country you are residing. This could be in the form of a driving license, any utility bill (electricity, water, gas, etc.) or council tax bill. Once the bank account is opened, you will be given a dedicated tax number and you must register the fact that you now own the property with the local municipality.
Connection Fees, Tax and Insurance
Once you have the keys to your new holiday home, you will need to pay one off connection fees for utilities such as electric, gas and water. You will also be required to purchase earthquake insurance. Turkey does experience earthquakes and this insurance is mainly for peace of mind. All new build properties come with an earthquake warranty certificate by developers, but if you are buying a slightly older property, we recommend that you ask for one of these certificates.
Annual property tax is collected by the municipalities (the equivalent of council tax) at the rate of 0.3% for land and 0.1% for a house. Costs can vary slightly depending on your municipality and in the big cities these figures are double. All properties are subject to revaluation every year for tax purposes. If you are buying off-plan, as the buyer you must complete an affidavit and submit this to the municipality for tax purposes within 3 months of completed construction. We are happy to guide you through this process for the first time.
Your acquired property may be resold or rented out and the proceeds may be transferred out of Turkey.
Can i apply for a Residence Permit in Turkey?
Love Turkey and want to make it your home? Then you will need to apply for a Residence Permit. These are top tips and guide to the residence permit application procedure, and our local offices around Turkey can assist you with the application process.
Long Term Residence Permit is suitable for anyone who has eight continuous years on a Turkish residence permit with no longer than 120 days in any 12-month period outside the country.
Short Term Permits last for up to a maximum of two-years and the passports must be valid for the duration of the permit applied for plus 60 days. (120 days out of Turkey in any 12 months ruling has been abolished)
Family Resident Permit is available for up to a three-year maximum period and there is no limit on the amount of children (under 18) to be included in a family residence permit, and all passports must be valid for the duration of the permit applied for plus 60 days. (180 days out of Turkey in any 12 months ruling abolished)
Student Resident Permit is available for up to 12 months and will only be issued with a letter of consent given by parent or legal guardian.
Can I extend it?
Firstly, visit the website https://e-ikamet.goc.gov.tr to find out what sort of extension will be applicable to you.
You can use the ‘’Application for Extension’’ option and simply post the required application forms or visit your local Ikamet office if you have on in your area.
What documents do I need?
An existing, valid tourist or residence visa/permit.
Your passport valid for the duration of the permit applied for plus 60 days over the said duration, with photocopies in color of the latest entry visa page, and the main passport details page.
At least 6 (Best to obtain more) color passport size photographs conforming to Biometric sizing.
Mandatory health insurance, for each applicant under 65 years of age.
Proof of address in Turkey, available from your local government Citizenship office.
If applying for a Family Permit, you will need a marriage license or document, something to show sufficient and sustainable resources for the duration of the permit applied for and valid health insurance covering all family members under 65 years of age.
What is the process?
Visit the E-Ikamet website https://e-ikamet.goc.gov.tr/ and fill in the online application form.
Firstly, choose the ‘Application for Extension’ tab is you are renewing an existing permit or the ‘First Application’ for all other cases.
Book an appointment with the nearest DGMM office and choose the type of permit you require.
The red highlighted fields must be filled in but the black fields will also help speed up application.
After completing the process, you will be shown a screen confirming your application and given an application reference number that must be kept safe.
Click on the ‘’Residence Permit Application Document’’ link and print it out to take with you to your appointment at the DGMM office.
The application fees can be paid at the GOC/DGMM Offices or at a branch of HALKBANK or your local Tax Office (Vergi Dairesi). You will need your tax number and quote the tax reference number: 9069 when paying to ensure your payment is accepted and registered to an ”Ikamet card” (or Ikamet tax) payment.
British nationality is listed under United Kingdom.
Granting Country is your home country.
Granting Authority is the name of the department of your government that issues passports. E.g. HM Passport Office UK.
The photo that you upload must be a standard issue passport photo and conform to the Biometric profile.
Print out the page confirming your application.
Please note that is a guide only, for the latest application process and up to date information please visithttps://e-ikamet.goc.gov.tr/
What are the annual costs of Running a Property?
The annual running costs of property in Turkey are relatively lower than western countries. This explains why it is a popular choice for expats. The below are approximate amounts only and will differ slightly according to the type of property and where it is. Naturally, someone who is only using the property as a holiday home will incur lower costs. All the prices are in Turkish lira but use Google or XE.com to convert to Euros, pounds or USD.
Monthly Utility Bills
Electricity: For a two-bedroom apartment, monthly electricity bills vary from 150 to 300 Turkish Lira per month. The primary contributing factor for high electricity bills is air conditioning units that consume a lot of power. For this reason, some people lower their electric bill by installing stand up fans or ceiling fans.
Gas: Generally, gas is only used in Turkey for the oven. Rather than being connected through pipes, it is sold in large bottles of which the current price is approximately 100 Turkish Lira. Depending on how much you use your oven, a gas bottle will last an average of 6 to 9 months.
Water: Slowly, the old-fashioned water meters are being phased out and replaced with pay-as-you-go meters. Costs vary from averaging roughly 4 Turkish lira per cubic meter. A large family should factor in approximately 50 lira a month for water.
Internet: For permanent all year round living, the Internet will cost about 50 lira a month. If you are using your property only as a holiday home, you can rent dongles from companies who will deliver them to your door.
Annual Costs for a Property in Turkey
Council Tax: The charge for your council tax varies depending on the number of people on the tapu (title deeds) and the price of your property. An average 2-bedroom apartment can expect to pay roughly 3000 lira a year in Bodrum.
Rubbish Tax: This is a one-off annual tax collected with the council tax and is around 80 lira a year.
DASK Insurance: This earthquake insurance is compulsory by law. The cost varies between companies who use the square meterage of your apartment to calculate it. A 70-square meter apartment is roughly 250 lira a year. Obviously, the cost rises if you upgrade to contents and fire insurance.
Service Charges: If you purchase an apartment in a complex, a monthly maintenance fee is required. This fee goes towards costs such as communal electricity, water, swimming pool maintenance and any other communal facilities as agreed by the official management committee. They vary from complex to complex from 300 to 1.000 lira a year.
* A villa with swimming pool still requires maintenance so you can learn to either maintain the swimming pool yourself or employ a company for roughly 750 lira. Generally, villa owners only keep their swimming pools open from May to October if they are living there all year round.
* If you use the apartment as a holiday home, you may wish to employ a management company to perform checks, handle bills, or clean the apartment before you arrive. We offer all these services to buyers and can discuss packages available.
* If you choose to live in Turkey all year round, also take into account, the costs of residency fees and health insurance. We discuss this in our next article here or you can see the whole series of articles about buying property in Turkey here.
Can Turkish Citizenship be obtained by purchasing a Property?
Article 20 of regulation regarding implementation of “the Law for Turkish Citizenship” enacted in 2010 specifying requirements for foreigners to acquire Turkish citizenship, was amended by the presidential decree signed by President Erdogan on 19 September 2018. The decree with number 106 was published in the Official gazette and went into effect as of said date.
Based on amended text, the fixed capital amount required to apply for citizenship was reduced from US$ 2 million to US$ 500 thousand. According to the new regulation foreigners who own real estate in Turkey worth a minimum of US$250,000 (instead of US$1 million) can apply for Turkish citizenship. The expression “providing employment to at least 100 persons” which is among the conditions of eligibility for citizenship, was changed as “50 persons”. The amount of deposit to keep in banks in Turkey to acquire citizenship was also reduced from US$ 3 million to US$ 500 thousand.
On the other hand foreign investors should hold the properties or continue the minimum limit of financial investments for at least three years to meet the criteria for Turkish citizenship.
A foreign person that meets any of the below conditions may acquire Turkish citizenship:
- A foreign person who has made a fixed capital investment amounting to at least USD 500,000 and where such investment has been determined by the Ministry of Economy,
- A foreign person who has acquired an immovable amounting to at least USD 250,000 on the condition that an annotation has been put to the title deed stipulating that the immovable will not be sold for three years and where such acquisition has been determined by the Ministry of Environment and Urbanization,
- A foreign person who employs at least 50 persons and where such employment has been determined by the Ministry of Labor and Social Security,
- A foreign person who has deposited at least USD 500,000 to a bank active in Turkey on the condition that such amount is kept in the account for three years and where such deposit has been determined by the Banking Regulation and Supervision Agency,
- A foreign person who has acquired Government debt securities amounting to at least USD 3,000,000 on the condition that such amount is kept for three years and where such acquisition is determined by the Under secretariat of Treasury.
The Regulation Amending the Regulation on the Implementation of Turkish Citizenship Law enters into force on the date of its publication (19 September 2018)
What do I do if I receive a tax statement?
Many tax authorities will mail an informational copy of the real estate tax statement to the homeowner in addition to the Credit Union. However, there are some statements tax authorities do not forward to the credit union, and in special cases we will need your assistance in obtaining the bill. If you receive a statement for any of the following, please forward it to our office by mail or fax.
- delinquent real estate taxes
- supplemental or additional real estate taxes
- special assessments
- if the tax authority will not honor a bill request from another party.
How long does the loan process take?
Most mortgages originated today calculate interest in arrears, unlike consumer loans which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360 day year in which each month has 30 days.