The mortgage sector in Turkey for Foreigners.

The mortgage sector, which grows up rapidly all around the world, also entered in a serious improvement process in Turkey in March 2007 with the issuance of the "Mortgage Law". The effect of the law is that the demand of purchasing property increased and the mortgage sector went a step further.

Consumer loans in Turkey also increased in parallel with the growth of the mortgage loans. The total consumer loans' volume reached 172.693 billion TL in the middle of February 2011; while it was 91.353 billion TL in 2007 and it has a 89,04 % growth rate. Comparatively, in 2007 the mortgage loans, that had a volume of 30.823 billion TL, formed 33,74% of the total consumer loans and in the middle of February 2011; the mortgage loans had a 92 % growth rate, formed 34,27% of the total consumer loan sand its volume ascended to 59.188 billion TL.

With the growth of the demand of the mortgage loans, Banks started to play an active role. The volume of the mortgage loans of the public, private and foreign banks, which are categorized according to their capital, was 42.543 billion TL in 2009 and in the middle of February 2011, it reached to 59.188 billion TL. Between 2009 and 2011, the volume of the mortgage loans raised 16.645 billion TL and the growth rate became 39,13%. In the middle of February 2011, the public banks' mortgage loans volume was 17.409 billion TL, while it was 11.921 billion TL in 2009 and the growth rate was 46,04%. Furthermore, the volume of the private banks' mortgage loans was 19.769 billion TL in 2009 and it increased 43,06 %and became 28.281 billion TL. In addition to that, the growth rate of the mortgage loans in foreign banks was 24,31 % and the volume raised to 13.493 billion TL from 10.854 billion TL between the years 2009 and 2011.

The new regulations also gave ability to start residential financing companies like correspondent lenders and financing organizations.

DD mortgage - A joint venture of one of Turkey's biggest corporations Dogan Holding and one of the world's biggest banks Deutsche Bank, was established on 2008 with an approval from BRSA ( Banking Regulation and Supervision Agency). DD Mortgage's vision is to be one of the leading home financing corporations with high technology standards and a team of professionals with extended experience on mortgage products.

DD Mortgage creates values on mortgage industry with innovative products, flexible procedures and technological infrastructure combined with experienced employees. DD mortgage is also working on secondary market products in order to improve quality and increase resources that are available for residential home loans industry.
Author Resource:- Article written by Leading Mortgage DD company in Turkey, providing appropriate mortgage solutions such as Konut Kredisi with the help of specialized credit portfolio managers.

Turkey Property Buying Process

The principles relating to the ownership of property in Turkey are laid out in Article 35 of the Turkish constitution and the laws relating to the foreign freehold ownership of land or Turkey real estate have recently been revised and relaxed meaning that the property buying process in Turkey today has been simplified.
An investor wishing to enter the Turkish property market needs to be aware of certain restrictions that apply to the foreign ownership of properties or land of a given type in a particular location; furthermore it’s imperative that detailed and thorough title searches are carried out by an investor’s lawyer because problems have been known to arise with vendor’s not having the right to sell property for example.
Basically the process to purchase investment property in Turkey is straightforward if an investor is aware of the potential pitfalls and the restrictions that apply. This guide to the property buying process in Turkey highlights the main issues property buyers should bear in mind; but nothing can replace good legal advice and the first thing an investor should do before even making an offer on a property is find a local real estate lawyer to represent their interests.
In Turkey the sale of property to overseas buyers depends on the principles of reciprocity - if the country from which the investor heralds grants the theoretical right of freehold ownership of property to a Turkish citizen then the overseas buyer will be given permission to buy property in Turkey.
Land in Turkey is allocated a specific function according to the zoning schemes of the nearest town or village and if a piece of land is deemed to be agricultural for example and is offered for sale to an investor for development, certain issues will present themselves because the buyer’s intended use for the land does not match its defined function. Therefore it is imperative that a solicitor checks whether any restrictions exist in relation to any parcels of land a property investor is interested in buying for example.
Other restrictions that exist relate to land or property that is physically located outside the designated centre of the nearest town or village; the Village Act stipulates that foreigners are not permitted to own such real estate. And the final main restriction that can limit a property investor’s choices in Turkey is the restriction surrounding military land. Overseas buyers cannot buy land or property in the vicinity of military land.
If an investor is in doubt over any of these issues or is concerned about any real estate they are interested in buying in relation to these restrictions they should not even submit an offer to purchase before consulting their lawyer.
Once a property has been identified by the property investor as fulfilling all their investment criteria, an offer to purchase can be submitted to the vendor and upon acceptance it’s usual for the buyer to sign a conditional preliminary contract and pay a deposit of up to 10% of the property’s underlying price. The contract is mainly conditional to the completion of satisfactory title deed searches, and if the purchaser pulls out of the contract for any reason than those laid out under the terms of the contract then they forfeit their deposit. Likewise if the vendor withdraws from the sale they are expected to compensate the disappointed investor. It’s wise to have all these stipulations detailed in the preliminary contract, and any promises that have been made by the developer or vendor that are binding for the sale should also be included in any and all contracts entered into.
It’s imperative that the property investor’s solicitor do thorough searches of the title to the land or property to ensure that the vendor has the legal right to sell and that there are no outstanding debts or legal problems with the property. If the investor is buying an older property they should have a full structural survey done as well - especially if buying in an earthquake prone area as some structural issues can exist that are invisible to the naked eye.
When all has been proved to be in order with the investment property in Turkey the final contract is signed in front of a public notary by the vendor and the purchaser (or lawyers with powers of attorney), and the sale is completed when the balance is transferred to the vendor. The buyer’s solicitor will apply to have the title transferred and for the new title deeds to be delivered in the name of the property investor. This process can take a few months and in the meantime the majority of related taxes and fees will be due.
Finally, an approximation of the additional fees and taxes would include lawyer and notary fees, buyer’s tax of 1.5% of the property’s value, government and community taxes, insurance, property management charges and utility connection fees.

Source:Amberlamb

Turkey for Investment Property Buyers

The attraction of Turkey from a property investor’s perspective just got even better. In October 2005 when Turkey agreed to enter into talks with the European Union towards the country’s EU membership, the Crown Prince of Dubai immediately invested five billion US dollars into Turkey real estate sector giving overseas investors a boost of confidence in the country. Many second and holiday home owners and retirees had already begun to explore the delights of Turkey particularly along the country’s southern coastline, but now focus has broadened and appeal for property in Turkey is expanding countrywide.
Over the past ten years Turkey has undertaken many major reforms designed to align the country with her European neighbours and form strong economic links and business relationships with the West whilst retaining an important bond with the Middle East. The reforms have been successful and have resulted in Turkey beginning talks with the EU. The reforms have also resulted in Turkey achieving a growing worldwide appeal and the country has become a hot tourist destination with the majority of visitors either attracted to the vibrant city of Istanbul or the long meandering and inimitably beautiful Mediterranean coastline.
Both of these areas of Turkey now have strong returning and highly attractive real estate sectors which are already of interest to many foreign investors.
But Turkey is a vast and unique nation offering investors an unrivalled range of opportunities - Turkey spans the cultural and geographic divides between Europe, Asia and the Middle East and it has over seven thousand kilometres of stunning coastline on the Mediterranean, Aegean and Black Seas. It has highly desirable resort towns, clean and unspoilt coastlines, vibrant and exciting cities, world class sun and ski facilities and amenities and a laid back charm and exotic elegance.
Turkey also enjoys a strong and dynamic, multidimensional economy that embraces modern market forces whilst retaining a large and traditional agriculture sector - but the Turkish economy lacks sustained and significant foreign direct investment...
One of the fundamental keys to Turkey’s successful transition to full EU membership is its ability to attract and retain FDI. It has set itself a target of attracting 1.2 trillion dollars from Gulf States initially and therefore the Crown Prince of Dubai’s immediate financial commitment to the country’s real estate sector not only gave property investors faith in Turkey it gave other nations faith in the country as a whole and should lead to the further promotion of Turkey and an increasing flow of foreign direct investment.
This also means that property investors who commit to Turkey can have confidence in their welcome and acceptance.
If Turkey can get the FDI she needs and attain full EU membership she will become one of the most important and influential countries in the world as she will strategically and politically represent a bridge between the Middle East and Europe. The future prospects for Turkey and her economy are therefore very positive indeed over the medium to long term making the country an exciting investment opportunity for the buyer seeking significant returns over the same term period.

Source:Amberlamb