dqdx - The Buying Process

The Buying Process

Buying a property in Turkey is relatively straightforward in comparison to other European countries. Non-Turkish nationals are free to purchase in their own name and dqdx guides clients through each stage.

Since dqdx offers off-plan properties, the buying process is completed in a number of stages and concludes as the property construction is finalised and the sale is completed. Once you have decided on the property you wish to purchase, we ask for a one-off (non-refundable) payment of Ł1,500 at the same time that you pay the initial deposit. This property is taken off the market immediately and reserved in your name. The London office will become your dedicated point of contact from this point on after which the chronology of payments is as follows:

Phase	Event	Amount
On reservation	Deposit and exchange of contracts	5% of purchase price Ł1,500 reservation fee
1 month after deposit	2nd payment	35% of purchase price
6 months after deposit	3rd payment	10% of purchase price
12 months after deposit	4th payment	25% of purchase price
On completion	Handover of keys and transfer of title	25% of purchase price

Ancillary Costs

As in the UK, purchasing property entails ancillary expenditure, such as legal and notarisation fees. These fall due at different times - prior to purchase, ongoing during ownership and payable on sale. These costs vary in accordance with the value of the property.

Property Financing

Mortgages are not available in Turkey although they are scheduled to be introduced shortly (legislation has already been passed). Long-term credit is available from 5-15 years, secured against the property purchased. However lending to non-residents is restricted. For UK and Irish investors therefore, the simplest way to finance is through equity release against assets in your own country. However this may expose you to currency exchange risk if you rely on funds repatriated from renting your property to service a sterling-denominated debt.

We recommend therefore that you consult with a UK mortgage broker with international expertise. There are a number of brokers who are able to arrange non-resident mortgages for UK/Irish citizens (subject to status). These mortgages are provided by foreign banks (not necessarily Turkish), specifically to buy investment property in Turkey and are secured on the property purchased there. Your credit relationship with the bank is effectively "ring-fenced" since your UK assets are not considered in the lending decision and so remain protected.