Mortgage Process in Turkey

The Turkey mortgage process in Turkey, is very similar to the majority of many other
countries but can be at times slow, due to the Turkish legal and administration
system. If you have found a property in Turkey and made a deposit, we would
advise that you contact us as soon as possible. Our advice and mortgage quote
service is free of charge and you are under no obligation. You should be aware
that property purchased in Turkey, especially raising of Turkish finance, can be
more complicated and time consuming, therefore we would recommend that you start
the mortgage process as early as possible to avoid such delays and make the
buying process as smooth as possible. Obtaining an acceptance for a mortgage,
will give you the head start you need to purchase a property, this service can
be arranged whether you have yet to visit Turkey. Once an acceptance has been
completed, you will know the range of property values you will be able to
purchase at and place an offer, confidently knowing that you can raise the
necessary finance to support this. Once an offer has been accepted on a property
and the sale agreed, the initial sale of contract is draw up, a contract is
normally drawn up, which would include the price, completion date and any other
relevant information for the sale. An application of transfer is then made to
the land registry, with deposits being paid, legal documents being drawn up,
local tax numbers being registered.

The property is also valued and the mortgage
application reaches final sign off with the appropriate lender, with the
mortgage offer being released and the property completion date being set,
subject to the title deed transfer timescale, as the title deeds need to be in
the same names as the mortgage application. If you are purchasing a property
“Off Plan” a mortgage can only be raised by completion of the property, however
you are still able to apply for the funds and have the mortgage offer in
writing, but the final survey will not take place and funds will not be made
available until the property has been completed and fully inspected by the
lender concerned. Please note that in all cases you will need to have been
granted clearance to purchase your property from the Turkish Ministry of
Defence. Usually your vendor will apply for this so make sure you are not short
changed in any of your negotiations.

Turkish home loan market

Mortgage regulations increase the value of the Turkish home loan market

Despite the presence of mortgage regulations in Turkey, there is no reason for an investor to be afraid about investing on a property through loan mortgage. In fact, as the market progresses, investors are given the chance to use the gearing technique.

Gearing is a method that can help anybody who looks for higher returns on investment. Simply put, if you eye to purchase a property worth £200,000 with 50% taken from home loan, there is a chance for you to gain more once the property appreciates in by 10% in a year’s time. Doing the math, you may gain as much as £20,000 or 20% out of your £100,000 initial investment.

What makes the Turkish home loan market boom?

Aside from tourism and affordability of properties on Turkish grounds, there are yet other reasons for foreign investors who want to enter into the loan market scenario. Turkey is accessible most especially to the United Kingdom with only four to five hours of travel using Turkish airports. Additionally, every person can acquire a home not only in areas situated near the beach but even in the rural areas.

Rural properties in Turkey are eyed by investors because of the cheaper prices attached to them. With this, it really does not matter where you buy a Turkish property. As long as you enjoy the country at its best, your home loan will be paid for not only in monetary terms but in aesthetical pleasures.

Turkish Home Loan Market Saved

Has the Turkish Home Loan Market Saved Because No Mortgage Regulations was In Place?

A lot of foreign investors are contemplating on renting up a property on Turkish grounds. This is basically because of the real value of the place especially when it comes to tourism. The country is a good combination of big beach resorts and a favourable climate. An added advantage that foreign investors see is the fact that homes are reasonably priced. With all these facts about Turkey, everybody seems to be interested in signing up a home loan in any of the banks or financial institutions offering one.

Developments of various properties in the place are considered budget-friendly. This being so, investors both from within and outside the nation are taking their chances on investing on home loan. But, is it true that the Turkish home loan market was put aside because there were no concrete mortgage regulations in the place?

The real scenario in Turkish home loan market

The Turkish mortgage regulation was supposed to provide tax incentives to mortgagors. These tax incentives are now utilized in order to develop the primary and secondary mortgage markets in the country.

Mortgage regulations in Turkey are not to be taken as an opportunity to raise the fair market value of Turkish properties offered in the loan mortgage market. If this happens, prospects of the said market – especially foreign investors – may back out from the project. This may even be a cause of another problem when selling mortgage bonds to countries like the USA.

How did Turkey solve the home loan problem coinciding with mortgage regulations?

Turkey must be very thankful with the presence of big construction companies who helped develop new projects just after the mortgage regulations have been implemented. These projects led to the decrease of home prices and are now available for loan. Effortlessly, the government as well as project proponents are able to sell the homes to various investors.

Of course, the country continued to flourish in terms of tourism. In fact, Kusadasi and Fethiye on the west continue to be recognized worldwide because of its well-known resorts. Smaller beach towns like the Aegean and Mediterranean Region are not left lagging behind. For anyone who continues to search for mortgaged property in Turkey, Antalya and Side at the southern part are popular choices.