What is an off-plan property?
What is an off-plan property?: Houses for sale in Turkey are divided into four different categories.
An old building that has been updated, repaired, and renovated is referred to as a renovated property.
Houses that have already had one or more owners are referred to as resale property.
A newly constructed house with no previous owners qualifies as a ready-to-move property.
A project that is still under development is referred to as an off-plan property.
A major distinction between an off-the-plan project and other properties is that it is uninhabitable. Buyers cannot move in immediately after making a purchase; instead, they must wait six months to two years before receiving title deeds.
Off-plan Property in Turkey
Purchasing property ‘off-plan’ was exceedingly widespread and trendsetting during the period when the Turkish real estate market was booming, roughly from 2002 to 2010. This is due to the fact that prices rose by 20-30% after completion, and there were few new-build projects available with exact requirements.
All of this was true as the market was spiraling out of control, but buyers were still wary of spending their hard-earned money in ‘under-construction’ projects. While houses in the development phase have their own worth, let’s bust some myths and look at the advantages of buying Turkish real estate off the plan.
Benefits of buying off-plan property in Turkey
In Turkey, the majority of second-home buyers opt for an off-the-plan building. Builders frequently begin marketing their projects to real estate investors at discounted pricing during the development stage, which are lower than the usual market rates. Other properties left in the project have their prices raised at various stages of construction until the expected market values are attained and the project is completed. The additional price rise is guaranteed by at least one year of market growth throughout the construction term of apartments or villas.
Advantages of buying under-construction projects in Turkey
- Buy at a lower price than the market rate.
- The possibility to obtain acquisition at reduced market values is a significant benefit of buying real estate ‘off-plan.’ As an added incentive, developers propose further deductions for early bidders and lenders. Because of their capacity to sell a large number of units quickly and competently, they provide the best discounts to property buyers.
- Increasing Property Resale Profits
- It goes without saying that the value of residential and commercial assets increases before they are completed. Financiers might list their homes for resale and sell them at a higher price than the market. Purchasing off-the-plan properties can be a good investment idea if you want to make rapid money. Renting real estate and reaping profits from the constant rental income can result in higher ROIs and capital gains, resulting in capital growth.
- Increases the amount of time available to plan and save.
- Under-construction properties might take several months to complete, giving purchasers plenty of time to plan ahead. If the goal is to move into the new home, there will be plenty of time to set up an auction of the present property or finalize tenancy terms. Off-plan projects also allow investors to build up cash reserves and seek financial assistance in exchange for their contributions. Different payment plans exist, such as no account advancement payments, in which the balance of the agreement is remunerated at settlement.
- Defeat the government’s taxes.
- Off-the-plan purchases are extremely beneficial to real estate investors looking to use the tax system to their benefit. The Turkish government has implemented new tactics to enhance real estate development and attract international property purchasers. It allows foreigners and Turks residing abroad to acquire projects directly from developers and avoid paying VAT if they meet the following criteria: The investment is made in a foreign currency and applies to each owner’s first property.
- Make personal suggestions for interiors, decors, and furnishings.
- When purchasing off-plan real estate, purchasers have the added benefit of being able to personalize the space. The ability to choose from a variety of high-quality materials and interior finishes allows property owners to construct a home that reflects their personal style.
- Growth of the stock market
- Capital appreciation is a big advantage of acquiring an off-plan house. Off-plan property owners are rewarded for their patience by receiving the best market increase imaginable, as values tend to follow the progress and development of the project. From start to finish, early investors make an average profit of 30-40% price gain.
Off-plan properties in Turkey offer various benefits to both domestic and international investors. Investing in such real estate developments is genuine, resulting in rapid capital growth and investment profitability. Unlike resale homes, which require full payment up front, properties under construction offer flexible payment options that range from 6 to 60 months.