Before you start looking at properties, you need to know what your budget is. Some people find their ideal dream house first and then look for ways to fund the purchase. However, this generally ends up with the buyer overstretching themselves financially for many years to come, or disappointment when they realize that gorgeous villa with infinity pool and sea views is simply out of their reach.
To start, make a list of all sources of finance. Also, note whether the money is readily available or when you are likely to receive it. Most foreigners buying property in Turkey use one or more of three sources that are savings, inheritance, or re-mortgaging their UK property. It is important to know when the money is readily available because house sales in Turkey generally happen quite quickly, and the whole process can be completed from as little as 1 week to 2 weeks.
About Turkish Mortgages for Foreigners
In 2007, Turkey’s banks started offering mortgages to foreigners. Naturally, terms and conditions vary according to the bank but generally, 50 to 65% of the purchase is financed leaving the buyer to source funding for the rest of the acquisition. Please contact us if you would like to receive a list of banks offering mortgages to foreigners, but at this point, it is worth pointing out that repayment rates tend to be higher than that for Turkish citizens.
About Currency Exchange
Although you are working your budget out in the currency of your home country, remember that the value of the property is tied to the Turkish lira house index. Should you choose to sell your property later, its value will be determined in Turkish lira. Over many years, currency exchange rates can fluctuate either way, so it is worth getting into the habit now of watching the exchange rate so you are aware of how your property investment is performing.
The currency exchange rate at the actual time of handing over the money is also significant. Naturally since, property purchases involve thousands of pounds, a slight difference in the exchange rate can make or lose quite a bit of money. Our trusted partner Smart Currency Exchange are experts at helping people such as yourself manage the risk associated with transferring money overseas . You may think it’s early in the process but it actually helps having some visibility at an early stage for this and also for info there is no additional cost for using their services. Get more detail here.