4 Real Estate Mistakes Investors Should Avoid
Suppose you are thinking about buying a property in Turkey. In that case, there are four real estate mistakes to consider to make sure that you avoid any potential fraud in the property-purchase process.
In recent years, Turkey has become the destination of many foreigners who want to own a property. It has even turned into a regional power. Turkey has a significant influence on the real estate market by achieving record numbers. For example, foreigners buy 45 thousand properties annually.
Talking about the positives and numbers that Turkey has achieved in the real estate world does not negate some problems. You may face some issues when buying real estate in Turkey. These issues are natural things that result from complacency or neglecting some real estate advice. Or taking the step of real estate investment in Turkey without goals.
How to avoid the biggest real estate mistakes while buying a property in Turkey 2021
To find out the answer to the above question, continue reading the article focusing on the four most crucial real estate mistakes. Investors may face these troubles. So, you should be wary of them and avoid them as much as possible.
4 real estate mistakes you should avoid
1- Real Estate Broker Fraud
If you don't have experience in the real estate sector in Turkey, you may be exposed to fraud by Real Estate Broker Fraud or a fake real estate company. So, What Is Real Estate Broker Fraud?
Real estate brokers help their customers with real estate transactions and operations involving real property within a single or several states. Although they are bound by a code of ethics and must adhere to professional standards of conduct, they sometimes engage in fraudulent activities that may result in severe penalties.
Falsification in the Sale
The primary source of concern with a broker is the falsification of some critical aspects of a sale. Some people may give misleading information about their qualifications, background, and work history. These and other types of fraud are most prevalent in real estate transactions. It is the first real estate mistake that you can do in Turkey.
Brokerage fraud happens when an entire company or agency commits the same fraudulent acts as a single broker. Sadly, without realizing they are committing a crime, the corporation or a single expert may repeat the activities until someone calls the police or another professional examines the situation.
Good examples of broker fraud
Cozenages are a vital component of broker fraud. Through the scam, the broker may engage in illegal activity and continue to charge a person for different real estate problems. He or she may misrepresent a property based on its age, history, dimensions, and flaws. He or she may even use a forged license or give forged credentials to the buyer or seller in order to further his or her activity or scam.In other cases, he or she may delegate the job for which he or she is responsible to another person without the buyer's permission.
Full disclosure, as well as the requisite duty of care to the client, is essential. It is the broker's responsibility to provide all information, to be honest, and to provide data about circumstances to the buyer or seller.In real estate transactions, the client places their trust in the broker, and the obligation to perform the proper function is critical. If the broker fails to fulfill his or her duties, he or she may face legal action as a result of the violation.
2- The fluctuation of the exchange rate of the Lira against the dollar
The exchange rate is regarded as a key determinant of a country's relative level of economic health. Exchange rate movements have a direct impact on a country's overall productivity and have the potential to directly increase the overall trading performance of the majority of enterprises and the balance of payments of developed countries.
Turkey is a developed country that relies on outside financial sources for resources, energy, and technology, among other things.As a result, as the exchange rate rises, so does the amount of money spent (TRY equivalence) on loans.
An increase in the exchange rate would result in a poor economy due to a decrease in new investments, a decrease in economic growth, and an increase in the unemployment rate.
As a result, there is no doubt that Turkey's unpredictable dollar exchange rate has a negative effect not only on governmental accounting but also on everyone's standard of living..
3- Real estate mistake: Misunderstanding the real estate buying process
One of the fundamental obstacles and real estate mistakes that stand in the investor's way is the misunderstanding of the real estate buying process and the required documents.
Alhuda Real Estate offers you a set of services to facilitate the process of buying a property in Turkey:
- Choosing the right property through a reliable and legal real estate company.
- Visiting the property site, accompanied by experts, checks and discovers the extent of defects in it.
- Extracting the tax number from the tax department closest to the buyer's residence.
- Doing the translation of the passport into Turkish language with its authentication at the notary.
- Conducting a purchase contract between the construction company and the investor that contains the parties' details and the property, the date of delivery, materials used in construction, taxes, delay fees, and defaulting on conditions in case the property is under construction.
- Make sure to sign you as a buyer and the construction company on every page of the sales contract, attaching plans to design the identity and sealed property by a notary so that you guarantee all your legal rights after purchase.
- Transfer Of Ownership
With these simple stages and documents, buying real estate in Turkey for foreigners is done.
4- Real estate mistake: Lack of knowledge of the real estate market in Turkey
One of the complicated real estate problems is the lack of extensive knowledge of the real estate market in Turkey and the factors affecting it. In terms of construction companies, buying conditions, prices, apartments, projects, advantages, negatives, regions, etc.
This problem increases with most new investors in Turkey and even the old ones asking the wrong person or party to obtain real estate information.
Suppose you want to enrich your information about buying real estate in Turkey and the real estate market. In that case, you should seek the help of experts who are thoroughly familiar with all the small and big things related to Turkey's real estate sector and alert you to points that you may overlook about the real estate mistakes and the market in Turkey.
Smart solutions to avoid real estate problems in Turkey
To avoid real estate mistakes in Turkey, bypass them with intelligent solutions provided by Alhuda experts:
- Never buy a property without reliable real estate brokerage.
- To choose a reliable real estate company, ask about it, contact its former customers, and not content yourself with comments.
- Don't let all of your legal and administrative steps go without a real estate expert.
- Read real estate articles such as the Al Huda Blog, which transmits everything new about buying real estate in Turkey and the sector legislation.
- Ask the real estate expert about everything and inquire about each point so that you clarify all your questions.
For more information about real estate investment, please contact our consultants at Al Huda. We’ll give you all the information you need in a free online consultation