Is Istanbul a Promising Investment Prospect?
In a market where people are afraid to take risks, Istanbul is beginning to shine like a beacon. Istanbul has become familiar to me as a result of my many excursions from Cyprus to Bulgaria. I fly into Istanbul’s Ataturk airport and then wait for my 10-hour bus ride to Bulgaria for up to 8 hours (food for another article).
Istanbul intrigues me; it only takes a brief visit to see that it is one of the world’s major transit hubs. This city is at the crossroads of so many journeys, and it is so steeped in history that it is constantly just beneath the surface, no matter what 21st-century growth throws up.
So, do you want to Turkish Passport by Investment? What makes it a promising location for short- to medium-term expansion? Many people would point to the UK’s impending EU membership as an example. Whatever happens in that field, Turkey is, in my judgement, on the rise. From political sway to pipelines, business, and communication, everything happens here. Due to a fast growing population, property is in short supply to meet the demands of industry. There is a robust market for buying when there is a lack of excellent rental property.
I went to the Tulip Turkuaz development in Bahcesehir/Ispartakule, which is 15 minutes from Ataturk Airport, 15 minutes from ferries and the Bosporus, and 25 minutes from Levent and Maslak’s business districts. This accomplishment piqued my interest for a variety of reasons, the first of which was its Bio-Climatic credentials. This one was designed by Ken Yeang, who is well-known for his previous bio-climatic breakthroughs.
The second reason is that this project has some incredibly important partners, such as Tulip Turkuaz, a real estate investment firm, and Toki, a Turkish construction firm, both of whom are committed to ensuring security. Toki’s business partner, EMLAK KONUT, is also participating. When you consider Akbank, Turkey’s second largest bank, The VAN HERK GROUP, a Dutch investment firm, and PANAGRO, the Dutch construction firm that is really creating the project, there is no doubt about the development’s credentials.
When I got on site, I was greeted by Gül Küsefoglu, the Sales and Marketing Manager. She took me through the project and used a model to show me how the finished development will look and perform.
The property will include a number of water channels, with the water coming from reclaimed grey water from nearby properties. The development plot will be 65 percent green area. On the rooftops of the buildings, there will be gardens, and even the underground parking garages will have green open spaces to the sky.
The complex will use solar panels to help residents save money on their electricity bills. Natural light corridors will be placed throughout the buildings to make the most of the light, and all 11 apartment buildings will be positioned such that they do not block each other’s natural light. So, here’s how much it’ll set you back:
In Turkey, purchasing costs account for around 7% of the overall purchase price.
The Costs of Buying a House
1. Purchase tax: The government must receive 3% of the property’s ‘declared’ value. For taxation purposes, the City Council sets home prices, therefore their assessment is far lower than the actual purchase price. Once the TAPU has been obtained, there is a one-time payment that must be made (step 6).
2. The attorney’s fee: ( should you require one, but Property Sun Turkey strongly advises) The cost of a solicitor starts at roughly £400.00 and varies depending on which one you select.
3. Agency commission: In Turkey, real estate agents charge a 3% commission depending on the purchase price to the customer.
4. Notary fee: Expect to spend roughly £100-150 for the power of attorney and passport translation. You must pay this at step 4.
5. Find two maps: you’ll need two maps. The first is a property map, which is submitted to Izmir’s Aegean Army. This is estimated to cost about £35. A 1/5000 scale map was used in the title deed process for the second map. The cost is roughly £400, but it varies depending on the municipality. (Two-Step Process)
6. Registration of title deeds: £30 for a title deed registration in your name. Step 6 pays for this, and it only needs to be done once.
The cost of buying differs from one location to the next.
There may be additional costs.
Registration for Government Services Water and electricity transfer into your name – about £150
Government Building Insurance (DASK) has been required since 2000 and costs roughly £35 per year, depending on the size of the home.
Home and contents insurance is optional and can be obtained once the property paperwork have been registered in your name. Approximately £150, however prices vary depending on the type of coverage required and the property’s worth.
Municipalities (i.e., local governments) collect property tax on a yearly basis at a rate of 0.3 percent for land and 0.1 percent for homes. This can be paid once or twice a year, with the first payment being made in May and the second in November.
This is an intriguing concept for investors looking for a place to deposit their money, with a starting price of around £60,000 for a one-bedroom flat and the possibility of a mortgage.
Is Istanbul a suitable place to put your money? Yes, and I’m willing to put my money where my mouth is when it comes to Tulip Turkuaz, which is, based on what I’ve observed, a burgeoning development.