The purchasing power and payment preferences of the property buyers will vary.
While some investors wish to benefit from the discount by paying in advance, some investors may prefer to buy in installments to evaluate their current money or due to budget constraint. You can learn about the property purchase financing models which are generally applicable to the purchase of property in Turkey.
It is the payment of the entire value of a real estate at once. The property amount is paid by the real estate investor to the construction company account at once and immediately.
In advance payment method, construction companies generally provide significant discounts. If you want to buy your property at a discounted price, you can choose to pay in advance.
Advance discount rates vary from company to company; for example; a property with a price of 600,000 USD can be sold in cash at a price of 510,000 USD with a 15% discount.
Instead of paying the cost of the real estate at one time, a customer can pay the amount in installments and / or as interim payments with its delay difference.
Construction companies offer installment payment methods to customers who do not have the opportunity to pay the entire amount of the property at once or do not want to use bank loans. In summary; except for cash purchases and bank loans, the type of borrowing made to the company is called "Company Financing". Although these payment methods vary from company to company, they may be offered in monthly installments for a certain period of time or at the end of a period. For example;
* If 300.000 USD of a 600.000 USD property is given as a down payment and the remaining amount is paid to the company in monthly installments for 36 months, this is called “Company Installment”.
* If 300,000 USD of a property worth 600.000 USD is given as a down payment and the remaining amount is paid at one time after certain periods, it is called “Interim Payment (100.000 USD after 6 months, 100.000 USD after 12 months and 100.000 USD after 18 months).
It is the payment in which part of the property amount is paid by using short-term or long-term housing loan from the bank.
* In general acceptance, housing loan cannot exceed 80% of the real estate amount.
* In other words, a minimum of 20% of the property amount must be paid to the construction company as a down payment.
For example; for a house amounting 350.000 USD, the maximum amount of housing loan (350.000 USD x 80%) is 280.000 USD. The maximum amount of bank loan that the investor can use is 280.000 USD and he has to pay 70.000 USD down payment directly to the construction company.
* For the maximum amount (80%), there is no necessity to use credit. If the property investor wishes, he can use the lower amount of the bank loan by making a higher down payment or interim payment to the company.
* If the floor easement title deed for the projects which are under construction has not been prepared yet, credit cannot be used from a bank other than the contracted banks by constructor company.
Banks take into consideretaion the following conditions in order to assign housing credit to customers individually.
1. Floor Easement Title Deed must be ready.
2. 80% of the construction level must be completed.