When is the Best Time to Buy a Property in Turkey?
The short answer: when you find the right property, in the right location, at the right price, and within your budget.
The long answer on when is the best time to buy a property in Turkey takes into consideration other important factors such as:
Spring in Turkey offers the most pleasurable weather, ideal for viewing properties – but more importantly – a time when sellers are putting their properties on the market in time for summer. Between the months of May to June sellers list their properties in anticipation of a move before the three month summer holidays.
While the spring and summer season is the most popular time to buy a property in Turkey, for the savvy buyer, winter is a more prudent time to make an offer on property.
Traditionally the most enjoyable time to buy a motorbike or yacht takes place during the sunny summer season. Most sellers prefer to sell during summer when the weather supports immediate enjoyment of the new motorbike or yacht purchase. However, it’s actually more strategic to buy a motorbike or yacht in winter, as demand is low and therefore more inclined to be a buyers market.
Housing purchases are no different and also influenced by seasons. Particularly coastal or lifestyle properties that require favourable weather conditions to appreciate and enjoy the property’s lifestyle facilities on offer.
Four reasons why buying a property in Turkey in winter can save you money:
1. Motivated Agents: Winter season means fewer buyers available for inquiries and viewings. The low winter activity motivates real estate agents to want to close a sale.
2. Less Competition: With fewer sellers in the market, there are also fewer buyers. With less competition and demand, buyers have stronger negotiating power.
3. Time-Productive: The time to negotiate contracts is usually fast to complete in winter due to the low demand and motivated property sellers and their agents. You’ll also find real estate agents more helpful in winter due to the lower volume of inquiries received.
4. Motivated Sellers: Sellers always seek the higher demand, and thus higher prices of the spring and summer seasons. However, when a property is listed for sale in winter, there is usually a motivated seller with financial reasons, or an emergency situation to justify selling in the low season.
Turkish Lira Exchange Rate
The value of foreign exchange rate received for your home currency against the local Turkish Lira can cost or save you a significant amount of money. With the Turkish Lira in an official currency crisis against the US dollar, purchasing power for foreign buyers represents buying opportunities. Timing is everything with foreign exchange; especially considering the Turkish Lira has lost thirty percent in value over one year. Thirty percent depreciation in currency value represents a thirty percent discount, and why the best time to buy a property in Turkey is when the Turkish Lira is weak.
Tip: look to America’s foreign policy and sentiment towards Turkey, international tariffs, inflation and pertinent economic data releases for foreign exchange timing opportunities.
One of the best times to buy a property in Turkey is when you are buying off plan direct from the developer by credit. To reduce financial risk, developers sell properties off plan. This sales strategy helps the developer raise capital – like a form of self-funding – providing the developer with cheaper financing than borrowing from a bank. While the property has yet to be built, sales show homes are usually displayed on site to represent the final and finished build. When buying off plan, the property buyer is buying based on their research, due diligence, and reputation of the developer.
Buying off plan offers several advantages:
1. Variety and Customisation: Buying off plan provides a brand new property in addition to the ability to choose your preferred location, layout and finished materials.
2. Building Guarantees: Buying off plan direct from developer provides building guarantees, and as the first owner, full benefit from the entire time validity on the guarantees.
3. Cash Flow Friendly Payments: Off plan purchases are usually characterised by reasonably small deposits in the beginning, with payment upon completion or a series of milestone/time-staged payments when the project is delivered. This payment plan provides cash flow friendly payment terms and gives the buyer time to plan and save.
4. Competitive Pricing: Prices paid for airline tickets sold early are much lower than seats sold on the same flight purchased at the last minute. The construction industry is very similar in that early-stage off plan properties are competitively priced to attract sales and generate funding to minimise financing risk. To stimulate initial sales momentum and incentivise early bird purchases, developers price the first few off plan properties at substantial discounts, usually sold at below the market value from the prices paid at the time of completion.
5. Capital Growth: Buying today at below market value to the prices sold at the time of completion, offers in most cases, potential for capital gains. In most situations off plan construction takes a few years to complete. During such time, potential for capital growth is common. Many property speculators earn a living paying deposits for off plan properties, then selling at the time of completion in order to profit from the early-bird discount compared to the current market price.
6. Resale Opportunity: For investors seeking a quick profit, buying off plan offers the opportunity to sell before completion to benefit from the early-bird discount and capital gains potential during the construction period.
More Information About Buying Property in Turkey
• Buying Off Plan Property in Turkey: One area seeing much interest from potential buyers because of excellent prices is off plan property. What did you need to know about buying off-plan property in Turkey?
• Turkish Property Investment: To Rent Out or Sell?: All experts agree that real estate is the best long-term investment to make. Rent out or sell... Which brings more money? Base your decision on whether to sell or rent on current conditions and what makes the most sense financially.
• Guide to Buying Turkish Property for the First Time: Every year, increasingly more foreigners are looking at Turkish property to get their foot on the international real estate ladder. Some areas are more popular with foreign buyers than others and for good reasons. Istanbul Homes offers useful tips for first-time buyers.
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