Turkey is gearing towards liberalization of its national policies. Among the major advances in Turkey is the loosening of the country’s policies on ownership of foreigners of real property. As a result of such amendment, more and more foreigners coming from nearby European countries and the rest of the world invest in Turkish property.
There is a variety of means to own property in Turkey, use of private funds, a simple personal loan and loan with mortgage of property. Of these three, mortgage Turkey is the most efficient and convenient means.
Because of the demand for Turkish property, the country has tailored its mortgage laws to cater the growing industry of real estate sale to foreigners in order to encourage it. Today, the presence of a strong set of laws on mortgage makes Turkey a predictably good property investment on the map.
Most banks have a package or plan of mortgage for foreigners in Turkey, who are interested in buying property. In fact, even nationals from Great Britain and the other Scandinavian countries have chosen this scheme in order to facilitate easier ownership over the property since it is more expedient.
Just as well, applying for a contract of mortgage in Turkey is made more practical for foreigners seeking to own property. There are only four major requirements – a valid passport, proof of income, tax returns in the preceding year, and credit and mortgage statuses in the country of origin. After the mortgage is approved, the loan is released to be paid to the sellers of the property and title over the mortgaged property is issued in the name of the mortgagor.
In addition, it is notable that Turkey, in encouraging foreign ownership of property, has not set a maximum amount for mortgage to foreigners but has only set a considerable minimum of 30,000 Euros as floor mortgage price. In addition, foreign mortgagees are allowed to apply up to 65% of the value of the property as loan to finance the purchase.
The made-easy mortgage for foreigners in Turkey and the non-rigorous procedure in its application marks a market tendency that will bolster the increase of demand for real estate in Turkey.
