Benefits of Investing in Land in Turkey
When you buy a plot of land, you can expect to pay very little, especially since the average price of land is low. Would you consider purchasing vacant land as an investment, if you plan to build a house or sell it later? Owning land comes with a host of benefits that are often misunderstood. In this article, we aim to shed light on these benefits and dispel any misunderstandings that may be holding you back from experiencing the joys of land ownership. Here are some positive aspects of owning land in Turkey:
1. Low Maintenance Costs and Minimal Repairs
Investing in land for sale in Turkey brings the advantage of minimal maintenance requirements. Unlike traditional properties, you won't be burdened with concerns such as roof repairs, painting, or HVAC systems. This translates into significantly lower ongoing expenses and generally low property taxes, making land a sustainable, long-term asset that offers both financial stability and peace of mind.
2. Profits through a Strategic Buy and Hold Approach
In today's digital age, acquiring land at favorable prices is easier than ever. When you acquire a piece of land in Turkey at a favorable price and manage to keep your ongoing expenses minimal, it provides you with the flexibility to patiently await the perfect opportunity to either sell the land for a higher value or initiate a development project. Land in Turkey tends to appreciate over time, allowing you to maximize your returns when the time is right.
3. Generating Income by Leasing Land
Land ownership in Turkey can be financially rewarding through leasing arrangements. Many landowners, including farmers and ranchers, lease their land for both short-term and long-term purposes. By leasing your land, you can increase your returns over time. Whether through agricultural leases to cover taxes or hunting leases to generate income, land in Turkey offers diverse opportunities for income generation.
4. Affordable and Sustainable Investment
When you embark on an investment in land, careful planning and clear objectives make it a financially sound choice. This approach allows you to make wise financial decisions without straining your budget. After you've acquired the property, you'll find that ongoing costs are typically minimal. While investing in raw land does involve inherent risks, taking strategic actions at the right moments can help you manage and mitigate these risks, ensuring that you enjoy the associated benefits.
5. Hassle-Free Land Ownership
Becoming a landowner in Turkey is a straightforward process. It begins simply with setting your budget, searching for available land, and selecting a parcel with a clear title. A real estate agent can assist you in reducing risks and ensuring a smooth and legally sound land purchase. Once you've closed the deal, you gain legal ownership of the land without significant risks.
6. Land Investments with Substantial Value
Among various investment options, land investments stand out due to the unique advantages they offer. The land is a tangible and appreciating asset. Owning land provides financial security, passive income opportunities, and the potential to double your investment without taking on high risks. As long as your land investment is well-planned, you can experience consistent profits and growth.
7. Land Ownership for Secure Retirement
Landowners in Turkey can continue to generate income by renting or leasing their property even after retirement. The benefits of land ownership extend beyond monthly earnings, as land requires minimal maintenance and appreciates in value. It's a secure way for retirees to maintain their desired lifestyle and achieve higher returns.
8. Versatile Use of Land
Owning land in Turkey provides you the flexibility to use it according to your specific needs and goals. Whether you intend to develop it for agriculture, boat storage, outdoor recreational activities, housing, or rental properties, the choice is yours. You can even explore options like solar energy farms, camping sites, golf courses, or timber harvesting without losing ownership of your land.
9. Excellent Resale Value
In Turkey, land investments experience rapid appreciation that exceeds the appreciation of developed properties. Land is resilient to natural factors like weather or erosion and is in limited supply, which drives up demand and, in turn, raises prices. Unlike apartments that need ongoing maintenance, land retains its value over time and can lead to substantial profits when sold, especially considering its relatively low initial costs.
In the next section, we'll discuss another important aspect of buying land in Turkey. Understanding the different types of land investments in Turkey will give you valuable insights and assist you in making informed decisions.
Types of Land Investments in Turkey
In Turkey, there are several types of land investments you can consider:
Residential Land: In general, this type of real estate is favorably received by foreign investors, particularly because of the amount of land allocated to housing, which supports a doubling of profits in this type of property called in Turkey “Arsa ”.
Investors in Turkey prefer purchasing residential land for building homes due to the freedom it offers in terms of design and specifications. The increasing value of residential land, particularly in major cities like Istanbul, Muğla, and Antalya, makes it a profitable investment. Residential land in major cities is particularly profitable, as its value continues to rise. Foreign investors have the freedom to purchase any residential land area, but there is a limit of 10,000 square meters without specific restrictions.
Commercial Land: Commercial land investments are typically made in areas with a high level of traffic. This includes locations near city centers, offices, and hotels.
When looking for long-term and maximum returns on their original investment, some buildings, such as those suitable for conversion into apartments or hotels, have proven to be timely investments. For those not quite ready to retire, owning and operating their own boutique hotel in Turkey has proven to be an attractive early retirement plan.
It's also home to some exciting opportunities that stand out all on their own in the country - for example, a gold mine in Turkey and an inner city renovation project. These unusual investment opportunities are ideal for anyone seeking a strategy that can result in stratospheric returns.
Agricultural Land: Purchasing agricultural lands for farming or livestock Turkey's fertile lands make it an attractive place for agricultural investments, especially in regions like Anatolia or the Mediterranean Region; particularly Antalya.
A large percentage of Turkish land is agricultural, owing to agriculture's importance to food security as well as its economic dependence on agricultural resources. Turkey's geographical location between Europe and Asia, as well as its climatic diversity, makes its agricultural land a unique one. It is for these reasons that different regions of Turkey offer a wide range of opportunities for agricultural investment.
Industrial Land: This type of land is of great importance to Turkey because it provides spacious land to build factories and industrial facilities, thereby strengthening the Turkish economy. Therefore, purchasing industrial land in Turkey is a unique and desirable investment for foreigners, especially those from developed nations. The Turkish government will assist investors in transforming it into a productive and export economy, reducing imports, and encouraging the construction of industrial facilities.
If you're looking for a quick increase in profits, don't hesitate to contact TERRA and invest in land. As a result of its geographical, economic, and demographic structure, Turkey has been a good investment for many investors in recent years. To promote foreign investment, Turkish economic policies are increasingly focused on encouraging and supporting it.
How to Buy Land in Turkey as a Foreigner?
What is the best way for a foreigner to purchase land? It is possible for a foreigner to purchase property in his or her own name or on behalf of a company; however, the preference between the two is determined by the type of property and the purpose for which it will be owned. It is best to establish a company and then register the property in accordance with its restrictions if the aim is to establish a project on the ground. It should also be noted that if the goal of buying agricultural land is to wait for it to go up in price, there is also the registration by forming a better corporation because a project must be established on this land within two years. So, here is what you need to do in an orderly:
To start with you need to become familiar with the new land Turkey offers by getting in touch with a reliable real estate agent. Ask them if they can add you to their buyer database.
Then, you need to make sure all documentation is in order and there are no dues attached to the property, such as a loan debt, unless it’s known in advance. After all is said and done, price negotiations can begin. Remember that haggling is a normal part of the process in Turkey, so definitely try to get several percent off the asking price.
It is then necessary to obtain a certificate indicating the estimated value of the land, which was imposed by the Turkish authorities to prevent fraud. This way, the buyer will know if he is overpaying. A certificate can be obtained from the local municipality's branch office.
Once you have a real estate agent or the seller has applied for ownership transfer (from the seller to the buyer), the General Directorate of Land Registry and Cadaster will inform the parties of the appointment date. Normally within seven business days, the deal is completed.
Until then, the parties will need to pay the necessary fees, one of which is the processing fee, which amounts to around 200 Turkish Liras. This fee is subject to change at a later date. The second fee is the title deed fee, which amounts to 4% of the purchase price that the buyer pays. It is important that you ensure you possess the necessary documents, such as a certificate of value and evidence of the payment of the fees before proceeding with the purchase of the property. For instance, if you agree to buy a plot of land for 100,000 Turkish Lira, the "tapu harcı" (a type of property tax) is 4,000 Lira.
As an example of a full buyer's package to purchase land, here are the documents:
• A passport or other acceptable photo identification (the ID document must be translated, certified, and notarized)
• Market value certificate
• Two recent photos (within the past six months)
• A copy of the fee payment receipt
• Representation documents (if the purchase is made remotely), e.g. power of attorney
As we approach the last stage of the land purchase – the appointment at the land registry directorate – both the seller and the buyer will appear in front of the directorate official. If a foreigner is buying property in Turkey, they must be accompanied by a certified translator at this stage unless they speak Turkish and declare they do not require one.
After explaining the details of the deal to the buyer, he/she will list the land plot's characteristics (location, purpose, value, etc.) Once the buyer confirms that the payment has been received, the official declares the sale successful, enters it in the land registry, and prepares a new title deed for the new owner.
It takes only a couple of minutes for the buyer to receive their tapu, which includes their name, photo, and other relevant information about their newly purchased plot. In contrast to red borders given for apartments, land ownership tapus have blue borders. In this way, foreigners can easily purchase land in Turkey.
Land Buying Procedure and Conditions in Turkey
In Turkey, both Turkish citizens and foreigners can own land or commercial properties without many restrictions. However, there are some conditions to be aware of when buying land as a foreigner:
• There is a requirement that the land to be purchased must be land, it cannot be an agricultural piece of land. If foreigners establish a company, then they are free to purchase agricultural land.
• It is important to note that foreigners cannot buy land within the borders of a village; they must buy within the city.
• Foreigners who purchase land are required to develop a project here within two years of buying the land. They are required to obtain a construction license and develop the new project otherwise, the state has the right to take this land back (again it cannot be an agricultural land).
• A foreigner buying a plot of land and then selling it to another foreigner (regardless of ethnicity) will not be subject to an extension of the current two-year period, but the current period will continue as normal. Suppose someone bought a plot of land one year ago, and when they sell it to another, the new owner has 1 year to build a new project on that plot of land.
• It is crucial to obtain approval from the government authorities when buying land in Turkey. By following this process, you will know the land is safe and secure. Generally, foreign buyers are prohibited from purchasing properties located near military facilities and sensitive areas because of national security concerns.
• In order to prevent the large-scale acquisition of land that might affect the availability of land to other investors or local residents, foreigners are restricted from buying land in excess of 300,000 square meters.
• Likewise, regional limits play an important role in ensuring that foreign investments don't disproportionately affect local real estate markets. There is a cap of 10% on land sales in each specific region.
Now that you know these facts, you can follow these steps to buy land in Turkey:
The process of buying land in Turkey involves these steps:
• Determining Budget: You must establish a budget before you begin your search for a home. Having an idea of what you can afford will help you narrow down your options and identify properties that match your budget.
• Land Search: Find properties that match your criteria and enlist the help of real estate agents. Real estate agents, whose local knowledge can be invaluable, can assist you in finding properties that match your criteria and present available options.
• Inspection and Due Diligence: Check the land's condition carefully, and consult a real estate expert if you're not certain if the land meets your intended needs. This ensures that the land is suitable for your intended use and is in good condition.
• Legal Consultation: Before signing any contract, you should seek legal advice from a specialized attorney. They will ensure your rights are protected during the transaction and guide you through the complex legal aspects.
• Contract and Title Deed Registration: As soon as you confirm the land's suitability and agree on terms, you'll formalize the contract at the Land Registry Office. This step culminates in issuing the title deed for the land in your name.
It is therefore important to understand that investing in Turkey's land provides a number of advantages. Turkey's combination of natural beauty and strong economy makes it an attractive investment destination, regardless of whether you are planning to build a new home or embark on an investment project. You can maximize your gains and experience success in this diverse and investment-friendly country if you understand the land-buying procedure and follow the relevant conditions.
How to Find Suitable Land for Your Development or Investment?
You are on the verge of an exciting journey if you are considering investing in land in Turkey. The country is beautiful, and it offers a golden opportunity for those who are proficient in land investment. However, it isn't just about buying any piece of land; it is about finding one that aligns with your objectives and dreams.
• Setting the Stage: Your objectives will be your guiding light in your quest for land in Turkey Is it to make a profit, or will you want to build something special on it? Defining your goals will be the first step in this adventure.
• The Quest for the Perfect Land: In the vastness of Turkey, there is no shortage of land for sale. However, this doesn't mean that all of it is a great investment opportunity. The real challenge lies in finding the land that will best and most efficiently complement your vision.
• Meet Your Ally: TERRA Real Estate: This labyrinth of land options can feel overwhelming. Don't worry, you're not alone. That's where Terra Real Estate comes in. These experts can be your trusted guide throughout this adventure.
• Understanding the Land Types: The Turkish landscape is filled with various types of land, each of which offers its own benefit, from scenic plots to fertile fields. Understanding what type of land suits your needs is vital.
• The Treasure Hunt Begins: You're ready to embark on your treasure hunt now that you've set your goals, partnered with TERRA Real Estate, and gained knowledge about land types. It's not a race; it's a well-planned journey to secure your investment, so take your time, research thoroughly, and think carefully about your options.
Therefore, investing in Turkish land is like writing a thrilling story, and you are the author. Setting clear goals, seeking expert guidance, and understanding the types of land will lead you to a successful and fulfilling investment. It is a worthwhile adventure to seek the perfect parcel of land, and it may result in financial success and personal satisfaction.
Apply to TERRA Real Estate to Buy Investment Land in Turkey
TERRA Real Estate is your reliable partner in Turkey for real estate investment. With more than a decade of experience, an extensive range of investment land, expert guidance, legal assistance, and a strong commitment to transparency, we simplify the investment process in Turkey. Get in touch with us today to embark on your path toward secure and profitable real estate investments in this thriving and dynamic market.