Assuming that you have decided to either sell your house or buy a new house, I should tell you that there are some considerations to take into care. Luckily, Istanbul Property experts have created an informative article that will show you what to do before selling or buying an apartment.
First of all, before buying a real estate, it's important to assess your financial readiness by determining your budget and exploring financing options, such as loans, debts etc. Provided that you have successfully found a loan according to your income, you will not encounter any financial issues, given that you stay loyal to your debt.
Additionally, consider the location of the property, including amenities, proximity to services, and potential for future growth. Decide on the type of property that aligns with your needs and investment goals, and carefully evaluate its condition through inspections or professional assessments.
Stay informed about the current market trends, including supply and demand, pricing, and overall stability. Furthermore, research any planned or ongoing developments in the area.
When selling real estate, obtain a reliable property valuation and assess the market conditions to strategise your selling approach and pricing. You don’t wanna sell it over-priced or under-priced, so everything should be according to the value. Consider making necessary repairs or improvements to enhance the property's appeal, which will hasten the process of selling. Develop a marketing plan and decide whether to work with a real estate agent, which is undoubtedly advised.
Most importantly, understand the legal and tax implications of selling, and have a clear plan for your next move. Finally, maintain objectivity and manage any emotional attachment to the property throughout the buying or selling process.
Check real estate and environmental cleaning taxes
There are dozens of taxes that we do not know about but are obliged to pay. One of these is the cleaning tax that every homeowner pays. People who own a real estate in Istanbul, or in Türkiye, may not realise that part of their water bill (approximately 0.5 per cent of the water bill) is taken for the cleaning tax. The cleaning tax is used to pay for municipality-employed cleaning workers to clean around buildings, houses and parks. In Türkiye, this tax is levied twice a year.
There is another tax that is paid when buying and selling a house in Türkiye. This is the real estate transaction tax. Real estate purchase and sale tax is paid individually by both the buyer and the seller. As of 2023, the distribution of the four per cent purchase and sale tax is two per cent from the buyer, two per cent from the seller + 400 TL revolving fund fee and 750 TL cadastral fee. In order for the payment to be made, the minimum declared value must be received from the municipality to which the immovable belongs. This is a legal obligation, it is absolutely out of the question for both parties to show a sales price lower than the municipality's declared value, in such a case, a tax penalty will be applied later.
Check the declared value of the real estate in the land registry
When buying a house, if it is second-hand, the seller may offer to undervalue the property. In this way, the owner thinks he is being cunning and plans to reduce the taxes. If this happens, talk to the seller and refuse the offer, as it will be bad for both of you. You don't know the seller’s tax liability, and even if he tells you that he is in a bad situation financially and cannot pay this tax, don't accept it. Tax evasion is a major offense and the penalties can be severe. You don't want to face higher penalties just to pay a little less, do you?
Another tax that a homeowner has to pay is the property tax, which is an annual tax. Homeowners are obliged to pay a certain portion of the value of their homes registered in the title deed each year as tax. Property tax is calculated at 1 per thousand for residences (2 per thousand in metropolitan areas). Let's say the value of your house is 300 thousand dollars, which means that the tax you will pay is 300 dollars per year, if it is a non-metropolitan city. If your household is in a metropolitan area, this value is going to be 600 dollars.
Luckily there is an exemption for some homeowners. Property owners with a single dwelling that does not exceed 200 m2 gross are given an advantage in property tax, and those who meet the conditions specified in the law do not pay the tax. Therefore, if it’s your first house and it’s not exceeding 200 meter square, you are not obliged to pay the property tax.
Do you need a real estate agent?
In Türkiye, it is not mandatory to hire a real estate agent when buying or selling a house, but having one can be highly beneficial. A real estate agent brings extensive knowledge and expertise of the local market, which can be invaluable in navigating the complex process of property transactions. They can provide important insights into property values, negotiate on your behalf, handle paperwork and legal documentation, and ensure a smooth and efficient transaction. While it is possible to buy or sell a house without an agent, working with a reputable real estate agent can save you time, effort, and potentially even money by helping you make well-informed decisions throughout the process.
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