Buying off-plan properties in Istanbul
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If you are looking for a new home in Istanbul, or for a profitable real estate investment in Istanbul, you may be interested to know that there are options to buy off-plan properties in addition to the more traditional ready homes.
Istanbul is a rapidly growing city with a strong demand for housing, which means that developers are continually building new properties to meet this demand. Off-plan properties, in particular, are becoming increasingly popular, as they offer buyers with many precious advantages than if they were to purchase a completed property.
What does buying off-plan properties mean?
Buying off-plan properties means purchasing a property before it is built or completed. Essentially, the buyer is purchasing a property based on the plans, drawings, and specifications provided by the developer, without actually physically seeing or inspecting the completed property.
The concept of buying off-plan is particularly popular in new or developing areas where there is high demand for property, and where developers are looking to pre-sell units in order to fund construction costs.
What are the benefits of buying off-plan properties in Istanbul?
One of the main benefits of buying off-plan properties is the potential for lower prices, as developers often offer discounts to buyers who purchase early. Additionally, buyers may have the opportunity to customize aspects of the property such as finishes, fixtures, and fittings, which may not be possible with a completed property.
Buying off-plan properties can also have several benefits, including:
- Lower prices: Buying off-plan properties can be more affordable than purchasing a completed property because developers often offer discounted prices to buyers who purchase early.
- Customization options: Buying off-plan allows you to have input into the design and layout of your property. You can choose finishes, fixtures, and fittings to your taste and even make changes to the floor plan, which may not be possible with a completed property.
- Potential capital appreciation: If the property market is growing, the value of your off-plan property may increase before it is even completed, allowing you to make a profit when you eventually sell. As a result, the investor can achieve the highest ROI.
- Payment flexibility: Developers often offer flexible payment plans for off-plan properties, which can make it easier to manage your finances.
- Guarantees and warranties: Developers may offer guarantees and warranties on off-plan properties, which can provide peace of mind that your investment is protected. An example of a guarantee or warranty that a developer might offer on an off-plan property is a "completion guarantee." This guarantee ensures that the property will be completed by a certain date, and if the developer fails to meet this deadline, they will be obligated to compensate the buyer in some way, such as providing a refund or covering additional costs incurred by the buyer due to the delay. Another example of a guarantee or warranty is a "defects liability period." This period typically lasts for one or two years after the property is completed, during which time the developer is responsible for any defects or issues that arise. If the buyer discovers any problems during this period, the developer is required to address them at no additional cost to the buyer.
What are the risks of buying off-plan properties in Istanbul?
While buying off-plan properties can have many benefits, it also comes with some risks. Here are some of the main risks to consider:
- Delays: There is always the risk that the construction of the property will be delayed, which can result in your move-in date being pushed back or extended. This can cause inconvenience, especially if you have already sold your previous home or made other living arrangements in anticipation of moving into the new property. It is worth mentioning that all the contracts include delay conditions and fines so the investor can guarantee his rights.
- Financial risk: If the property market takes a downturn, there is a risk that the value of your off-plan property may decrease, which could result in a loss if you decide to sell. But if you invest with the right constructor and in the right areas, you can avoid the risks of the small contractors.
- Developer risk: It is important to do your research and ensure that the developer has a good reputation and a track record of delivering quality projects. If the developer encounters financial difficulties, it could impact the completion of your property.
- Funding risk: In some cases, developers may rely on pre-sales to secure funding for the construction of the property. If the developer does not sell enough units, it could impact the timeline or quality of the project.
It is important to thoroughly research the developer, the property, and the surrounding area before deciding to purchase an off-plan property. It is also recommended to have a lawyer review the purchase contract to ensure that it includes provisions for potential delays or changes to the finished product.
We at luxury Signature care about the details that guarantee you the best real estate investment in Istanbul. You can contact our experienced consulting team and have free consulting.