Before embarking on your property search and financial planning, it's crucial to establish a realistic budget. While some may be tempted to find their dream home first and then seek financing, this often leads to financial strain or disappointment. To avoid such pitfalls, prioritize understanding your financial capacity before starting your property search.
Start by creating a comprehensive list of potential funding sources, indicating whether the funds are readily available or expected in the future. Many foreign property buyers in Turkey rely on savings, inheritance, or re-mortgaging their UK properties. Understanding the timing of fund availability is essential, as property transactions in Turkey are known to move swiftly, with the entire process sometimes completing within 6 weeks to 3 months.
Insights into Turkish Mortgages for Foreign Buyers
Since 2007, Turkish banks have been extending mortgage services to foreigners. While terms and conditions may vary between banks, the typical financing ranges from 50% to 60% of the property's purchase price, leaving buyers responsible for securing funds for the remainder. Although we do not provide mortgage advice, it's worth noting that interest rates for foreigners tend to be higher, making mortgages less favorable. As a IzmirAdvisor.com estate agency, we recommend clients consider organizing finances in their home country for better negotiation terms.
Navigating Currency Exchange Considerations
While you may be planning your budget in your home country's currency, keep in mind that the property's value is tied to the Turkish lira house index. In the event of a future sale, the property's value will be determined in Turkish lira. Given the fluctuating nature of currency exchange rates over the years, it's advisable to monitor rates regularly to gauge your property investment's performance.
The timing of currency exchange is also crucial, especially considering the substantial amounts involved in property transactions. Moneycorp, an international payment specialist, can assist in obtaining favorable rates and avoiding high transfer fees typically imposed by banks.
Understanding the Full Financial Picture
Beyond budgeting, it's important to factor in additional costs associated with property purchases. In our subsequent articles, we delve into various aspects of property acquisition to provide comprehensive insights for a well-informed decision-making process.
Explore our related articles below for further guidance on navigating the complexities of property investment in Turkey.