All you need to know about TOKi Turkey Real Estate campaigns

The aspect of financial discounts is among everything related to real estate market affairs – and governmental ones in particular – is a wide, broad and broad aspect of the prosperous Real estate industry in Turkey day after day, although some may misunderstand the issue of real estate discounts, as they think it is evidence of a recession in the real estate market In Turkey or as a result of fears of not selling the property, except that all this is just an illusion and a wrong interpretation touching estimates of discounts, as Turkey achieves every year many real estate sales that include more than the homes sold to foreigners in Turkey as well as to the availability of more apartments for sale in Istanbul .

As for the special Turkish government real estate discounts, these reductions are with a long-term government policy to keep the flow abroad towards Turkey increasing the attractiveness of the Turkish real estate market in front of the countries, we note that these adjustments benefit greatly, and what is mentioned in this aspect is that Turkey relies heavily on foreign investments and these A good alternative to debt and loans from the World Bank, which ended up paying its full debt in 2013 and does not want to return to that era of restrictions imposed by the World Bank debt.

There were also reductions of construction and contracting companies in Turkey, there are many new real estate projects after the validity of the urban transformation plan, which is converted into more than 7 million homes in Turkey into urban homes and safe housing and investment complexes, although these projects achieve the recycling of private capital With it during half a year or a year at more than one estimate, and some major projects sell a lot of their properties on the scheme and before construction, and so the discounts policy is only if a plan to compensate the sale and move to another project, and the competition factor between the major companies to attract more buyers and achieve Urgent earnings.

Perhaps one of the most prominent government cut plans for this year is the Comprehensive Housing Management Plan “TOKi”, where discount campaign applications will be launched for residents and companies who wish to pay their debts early, on the title deed, and according to information received from Ministry of Environment officials and from the Comprehensive Housing Department, a discount will be deducted. 20% for residents and companies who wish to prepay their debts immediately on their right.

Details of the plan

• Citizens who cannot fully close their debt stock can benefit from the 20% discount campaign under the Comprehensive Housing Management Plan.

• Citizens who will not be able to completely close the debt will be able to benefit from a 20 percent discount campaign for their cash payments, provided that they are not less than 25 percent of their debt stock.

• Buyers who wish to take advantage of the campaign will be able to apply to the relevant bank between May 6 and July 19.

• When the debt that closes after this date is closed, it will not be possible to benefit from the discount rate.

Conditions to benefit from the TOKi sale campaign

• Home and business buyers who will benefit from the discount must not have any dues and any debts on them that were paid to the Department of Comprehensive Housing from the date the application was submitted.

• Campaign owners and companies who started paying their installments at the end of 2018 will benefit from the campaign, but projects with 12 installments or less are not included in installments in the discount campaign.

• Real estate and business buyers who wish to benefit from the campaign will be able to use housing loans from the intermediary banks that they signed the real estate sales agreement.

The most important previous discounts in the Turkish real estate market

• Canceling the value-added tax on real estate in Turkey: “KDV” value-added tax is one of the most famous taxes around the world, but in the last third of 2018 Turkey issued a decision to cancel the value-added tax for a limited period, with high expectations that this cancellation period will be extended until In the middle of this year at the very least, to benefit from the law to abolish the value-added tax on real estate in Turkey, it is required that the buyer be a foreigner or an expatriate Turkish, that the buyer transfer the price of the property through a Turkish bank from outside Turkey, and that the amount transferred in US dollars, as well as Pricing of real estate is required in Turkish lira instead of the dollar and the euro.

• Reducing the minimum real estate investment in order to obtain Turkish citizenship: Obtaining Turkish citizenship is one of the great incentives for buying real estate in Turkey by foreigners, and even represents a strong financial return, and since the Turkish government announced in 2017 the decision to obtain Turkish citizenship by investment Real estate by one million dollars, calls and suggestions by real estate developers in Turkey began to reduce the minimum ceiling for much less, and indeed the Turkish government responded in the second half of 2018 and were issued to the Turkish citizenship law modifications that included reducing the minimum real estate investment that nominates Turkish citizenship from one million To the amount of 250 thousand US dollars, and the last months of last year witnessed an unprecedented demand for buying real estate in Turkey and all indications confirm that this amendment was the main reason for the increase in the demand of foreigners to own real estate in Turkey.

• Discounts for construction and contracting companies in Turkey: The past year witnessed such campaigns in which discounts reached about 20% for some projects in September and October 2018, in addition to discounts on home furniture and electrical appliances that are usually delivered with the apartment when sold , And many expectations indicate that many construction companies in Turkey are determined to repeat such experiences due to the profits they have made in previous times.

• Reductions on the interest rates for real estate loans: The dependence on real estate loans in Turkey is very limited, as the percentage of buyers through mortgage in Turkey no longer exceeds the 15% rate at best, due to the large increase and leaps in the interest rates on these loans coinciding with the decline in The exchange rate of the Turkish lira since the beginning of the third quarter of 2018, which made a number of Turkish banks tend to reduce interest rates on real estate offers which – although they differ from one bank to another and according to the value of the property and the duration of the loan’s fulfillment – but in general decreased from 20% in September 2019 to about 7% in February 2019 with the continuation of these discounts. It is also mentioned that some banks in Turkey currently do not exceed the value of the interest on the real estate loan with 3% or 4%, but the financing alternatives for real estate loans remain better and more secure, not to mention the fact that the loan It only covers 70% or less of the property value, not to mention of course the availability of real estate with the guarantee of the Turkish government, which you will know more about in this Blog.

If you want to know more details about the optimal way to take advantage of the various government and commercial discounts on the real estate market in Istanbul and Turkey in general, and if you want to enter the real estate investment market in Turkey from its widest and most reliable and profit-guarantee doors, do not hesitate to contact us to obtain our advisory services in a way Totally free, which our experts will offer you with pleasure and welcome, contact now .