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zuzum
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Property investment in Turkey is quite straightforward. There are 2 ways to own land for property development. The first is paying cash up front. The second is less financially straining: acquiring ownership of the land against units built. The second method is the most preferred by both investors and construction companies in Turkey as it does not require any initial funds against the ownership of the land. Any funds needed are for the construction expenses of the development on the land, subsequently alleviating the burden of fronting the purchase price of the land.
HOW DOES THIS WORK
A land owner offers his/her plot for property development instead of trying to sell it for cash to a construction company. This method also becomes more attractive for the land owner as he/she will receive units built on their plot, and when the land owner decides that he/she wants to sell the units that are left for them on the plot, will, in most cases, likely to receive more money than if they were to sell the land for current market value. Or they simply put their share of the units built up for rent, creating a great source of positive cash flow.
A contract is drawn up between the construction company and the land owner.
Once both parties agree on the terms of the contract, a property development company takes up the offer to build on the land owner’s plot. A less than 50% share of constructed units eventually belongs to the land owner, and the remaining units belong to the construction company. Normally the construction company will sell the units that they acquire off this deal, to property buyers.
How is the ownership of the land/units built for the construction company get acquired?
At different stages during the construction of the properties, deeds are issued to the construction company by the land owner. Units are allowed to be sold to property buyers even before the construction company acquires the deeds for the units. The cost of the units built by the construction company for the land owner becomes the cost of the land for the units that the construction company eventually owns. It basically means that the ownership of land for the builder becomes payments in installments over an agreed period of time between the two parties. This method alleviates the burden of having to front the cash by the builder; for the land, before they begin building, and the funds by the builder are used to pay for all building materials, manpower, taxes, permits, etc.
OFFER:
KEY DETAILS• Region: Kadriye (Belek),Antalya, Turkey
• Property type: Residential investment land for development
• Purchase method: land ownership in exchange for units built for land owner
• Advantage: No upfront funds required for purchase of land by builder
• Only units are built for landowner to acquire land/title deeds for the builder company’s ownership of land with units
• Percentage of ownership for builder ranges from 60% to 65%
KEY STRENGTHS
• Rapidly developing region
• Turkey’s Capital of Golf Tourism
• The first private university in the Mediterranean region, Antalya University is being constructed on an area of 110,000 m2 in the city’s Kadriye town, that began August 2008. The new university will include three faculties, four occupational high schools and a large campus area.
• The Antalya Chamber of Commerce and Industry has also started negotiations with the British Consulate for the city to host a proposed new British university.
• These new projects will: increase high rental occupancy and investment demand for the Antalya / Kadriye regions
• high capital appreciation
• attract more visitors to the region
• increase the population, thus strengthening the regional economy
HYPOTHETICAL SCENARIO
Below is a simple hypothetical scenario that will allow you to see how this system works and what financial gains it can bring to your investment decision to acquire land for residential development in Turkey, using this method.
All legal procedures are applied through the assistance of a lawyer and finalized at the Notary Public office. Any contracts drawn up and signed in Turkey are only valid in the Turkish Judicial system, if they have been drawn up, authorized and signed at a Notary Public office in Turkey. Any contract signed without the official Notary Stamp places very little weight for applying the law, should it be necessary to go to court.
FACTS IN BRIEF
We once again emphasize that this is a hypothetical scenario and not based on a real story. However the facts used are based on realistic information. Accurate information, facts and procedures will be present upon a real situation and can vary from contract to contract.
• Landowner: Ali
• Construction company: XYZ Builders
• Land size: 5,000 m2
• Planning permission: 20/40 with 3 levels (ideal for an apartment project)
• Total apartment units to be built: 30
• Units in exchange for land/units: 40% for land owner (12 units)
• 60% for builder (18 units) Contract period: 1 year
• Builder to receive 18 title deeds: in 4 stages during the one year period or sooner. This is based on how soon the builder can build 12 units for the landowner. Once all units are built for the land owner, then the builder has the right to own all 18 units it’s entitled to. The builder will acquire the title deeds during each stage the construction reaches.
PROCEDURE IN BRIEF
• A contract is drawn up and once agreed by both parties it is signed at the Notary Public office nearby. Using solicitors is strongly advised.
• A project is drawn up by an architect of the builder’s choice.
• Once the project is approved by both parties, permits are applied for.
• Upon the approval of the building permits for the construction of the project, construction procedures begin.
• Based upon the facts, the builder has one year from the date of the approval of the building permits to complete the entire construction of the property development. Approval is obtained from the local municipality.
• During the construction, based upon the facts and contract, the time to build is split into 4 stages and at each completed stage land title deeds are issued to the builder for the units that have been agreed to be given to the construction company for ownership.
EXPENSES IN BRIEF
• Opening a company in Turkey
• Accountant fee and monthly fees thereafter
• Solicitor fees
• Surveyor’s fees
• Notary Public fee
• Miscellaneous costs
• Consider your flight and hotel expenses for periodic visits to view the project in progress
• Annual land taxes to be paid as you acquire the title deeds into your or your company’s name
• Fees to be paid at the title deeds office as you acquire the deeds into your or your company’s name
• As you sell your units to property buyers, the 50% land title fee/tax based on the value of the property shown on the title deed (this is split between you or your company and the property buyer 50/50)
• Builder’s quotation will include:
o Architect and engineer’s fee
o Building permit
o Municipality fees
o Construction permission costs (YAPI DENETIM)
o Material costs
o Labour costs (salary, contract, taxes)
o Taxes
We cannot place amounts on these expenses as it is based on the value of construction, etc. However, we are equipped to present a quotation once all details are more certain and based on real information. The above is simply a guideline as to what you can expect to pay for.
WHAT CAN WE DO FOR YOU/YOUR COMPANY?
• Provide a full detailed quotation based on the land chosen for development.
• Assist in negotiating the terms with the land owner.
• Full project development support from the first step all the way through to the total physical completion and documentational aspect of the project.
• Property valuation to establish sales prices of your properties that are constructed for the buyer’s market.
• Full marketing strategy and implementation using all of our global resources to assist in selling your properties from your development to potentian local and foreign property investors.
• Full property management after the completion of the project.
• Full rental management to your client’s who purchase from your development.
• Before, during and after sales services to your client’s.
• Basically everything that needs to be done as if it were our own property development in Turkey.
MAKING YOUR INVESTMENT MONEY WORK HARDER FOR YOU
While you have an “x” amount of funds to investment for this property development project, why not use the Turkish banking system and gain more by way of high interest on large sums of money? You won’t be spending it all in one shot. The funds you disburse will be in stages for the construction of your property development project. The banks in Turkey offer higher interest rates than pretty much most banks in Europe. So bank what you haven’t spent yet and profit more whilst you build! It’s certainly worth it…wouldn’t you say?
More information can be acquired from all major Turkish banks. Please contact us and inquire about this information Today!
HOW DOES THIS WORK
A land owner offers his/her plot for property development instead of trying to sell it for cash to a construction company. This method also becomes more attractive for the land owner as he/she will receive units built on their plot, and when the land owner decides that he/she wants to sell the units that are left for them on the plot, will, in most cases, likely to receive more money than if they were to sell the land for current market value. Or they simply put their share of the units built up for rent, creating a great source of positive cash flow.
A contract is drawn up between the construction company and the land owner.
Once both parties agree on the terms of the contract, a property development company takes up the offer to build on the land owner’s plot. A less than 50% share of constructed units eventually belongs to the land owner, and the remaining units belong to the construction company. Normally the construction company will sell the units that they acquire off this deal, to property buyers.
How is the ownership of the land/units built for the construction company get acquired?
At different stages during the construction of the properties, deeds are issued to the construction company by the land owner. Units are allowed to be sold to property buyers even before the construction company acquires the deeds for the units. The cost of the units built by the construction company for the land owner becomes the cost of the land for the units that the construction company eventually owns. It basically means that the ownership of land for the builder becomes payments in installments over an agreed period of time between the two parties. This method alleviates the burden of having to front the cash by the builder; for the land, before they begin building, and the funds by the builder are used to pay for all building materials, manpower, taxes, permits, etc.
OFFER:
KEY DETAILS• Region: Kadriye (Belek),Antalya, Turkey
• Property type: Residential investment land for development
• Purchase method: land ownership in exchange for units built for land owner
• Advantage: No upfront funds required for purchase of land by builder
• Only units are built for landowner to acquire land/title deeds for the builder company’s ownership of land with units
• Percentage of ownership for builder ranges from 60% to 65%
KEY STRENGTHS
• Rapidly developing region
• Turkey’s Capital of Golf Tourism
• The first private university in the Mediterranean region, Antalya University is being constructed on an area of 110,000 m2 in the city’s Kadriye town, that began August 2008. The new university will include three faculties, four occupational high schools and a large campus area.
• The Antalya Chamber of Commerce and Industry has also started negotiations with the British Consulate for the city to host a proposed new British university.
• These new projects will: increase high rental occupancy and investment demand for the Antalya / Kadriye regions
• high capital appreciation
• attract more visitors to the region
• increase the population, thus strengthening the regional economy
HYPOTHETICAL SCENARIO
Below is a simple hypothetical scenario that will allow you to see how this system works and what financial gains it can bring to your investment decision to acquire land for residential development in Turkey, using this method.
All legal procedures are applied through the assistance of a lawyer and finalized at the Notary Public office. Any contracts drawn up and signed in Turkey are only valid in the Turkish Judicial system, if they have been drawn up, authorized and signed at a Notary Public office in Turkey. Any contract signed without the official Notary Stamp places very little weight for applying the law, should it be necessary to go to court.
FACTS IN BRIEF
We once again emphasize that this is a hypothetical scenario and not based on a real story. However the facts used are based on realistic information. Accurate information, facts and procedures will be present upon a real situation and can vary from contract to contract.
• Landowner: Ali
• Construction company: XYZ Builders
• Land size: 5,000 m2
• Planning permission: 20/40 with 3 levels (ideal for an apartment project)
• Total apartment units to be built: 30
• Units in exchange for land/units: 40% for land owner (12 units)
• 60% for builder (18 units) Contract period: 1 year
• Builder to receive 18 title deeds: in 4 stages during the one year period or sooner. This is based on how soon the builder can build 12 units for the landowner. Once all units are built for the land owner, then the builder has the right to own all 18 units it’s entitled to. The builder will acquire the title deeds during each stage the construction reaches.
PROCEDURE IN BRIEF
• A contract is drawn up and once agreed by both parties it is signed at the Notary Public office nearby. Using solicitors is strongly advised.
• A project is drawn up by an architect of the builder’s choice.
• Once the project is approved by both parties, permits are applied for.
• Upon the approval of the building permits for the construction of the project, construction procedures begin.
• Based upon the facts, the builder has one year from the date of the approval of the building permits to complete the entire construction of the property development. Approval is obtained from the local municipality.
• During the construction, based upon the facts and contract, the time to build is split into 4 stages and at each completed stage land title deeds are issued to the builder for the units that have been agreed to be given to the construction company for ownership.
EXPENSES IN BRIEF
• Opening a company in Turkey
• Accountant fee and monthly fees thereafter
• Solicitor fees
• Surveyor’s fees
• Notary Public fee
• Miscellaneous costs
• Consider your flight and hotel expenses for periodic visits to view the project in progress
• Annual land taxes to be paid as you acquire the title deeds into your or your company’s name
• Fees to be paid at the title deeds office as you acquire the deeds into your or your company’s name
• As you sell your units to property buyers, the 50% land title fee/tax based on the value of the property shown on the title deed (this is split between you or your company and the property buyer 50/50)
• Builder’s quotation will include:
o Architect and engineer’s fee
o Building permit
o Municipality fees
o Construction permission costs (YAPI DENETIM)
o Material costs
o Labour costs (salary, contract, taxes)
o Taxes
We cannot place amounts on these expenses as it is based on the value of construction, etc. However, we are equipped to present a quotation once all details are more certain and based on real information. The above is simply a guideline as to what you can expect to pay for.
WHAT CAN WE DO FOR YOU/YOUR COMPANY?
• Provide a full detailed quotation based on the land chosen for development.
• Assist in negotiating the terms with the land owner.
• Full project development support from the first step all the way through to the total physical completion and documentational aspect of the project.
• Property valuation to establish sales prices of your properties that are constructed for the buyer’s market.
• Full marketing strategy and implementation using all of our global resources to assist in selling your properties from your development to potentian local and foreign property investors.
• Full property management after the completion of the project.
• Full rental management to your client’s who purchase from your development.
• Before, during and after sales services to your client’s.
• Basically everything that needs to be done as if it were our own property development in Turkey.
MAKING YOUR INVESTMENT MONEY WORK HARDER FOR YOU
While you have an “x” amount of funds to investment for this property development project, why not use the Turkish banking system and gain more by way of high interest on large sums of money? You won’t be spending it all in one shot. The funds you disburse will be in stages for the construction of your property development project. The banks in Turkey offer higher interest rates than pretty much most banks in Europe. So bank what you haven’t spent yet and profit more whilst you build! It’s certainly worth it…wouldn’t you say?
More information can be acquired from all major Turkish banks. Please contact us and inquire about this information Today!
