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Renting v’s buying a property in Turkey

21st July 2014

If you are thinking of moving to Turkey, is it better to buy or rent a property?

And if you can afford to buy a property in Turkey, is it necessarily a good idea – or would you be better off renting instead?

Lets explore the positive aspects of owning your own home v’s renting in Turkey.

Buying a property1. Investing in your future
You are investing in your future when buying a property and creating a valuable asset. 
You can spend money improving your home and increasing its value, whereas you can’t alter a rented home without the landlord’s permission.

2. Freedom
If you own your home you can do what you like to it (within the planning regulations). You can make it a home for your family or simply move in and carry on. You'll also be in direct control of any problems with the property and won't have to deal with agents or Landlords.

3. Building your dream home
If you purchase an off-plan property you can design your home to pretty much anything you want. You can design everything from the bedrooms to the size of the pool and this can be an exciting and rewarding experience.

4. Come and go
Do you still have a base in your home country? You can use your property in Turkey as a summer home and come back and fourth*.
(*Regulations - please see; 90/180 day tourist visa explained & Turkish residence permit types)

5. Pet friendly
Do you have pets? You will find that many landlords in Turkey prefer tenants not to have animals and most renters find this there biggest problem when looking for a rental property.
However, by owning your own home you will have the flexibility to keep as many four legged friends as you like. Oscar, Jake & Sandy are all welcome.

6. Paying with a Mortgage

If you choose to take out a mortgage in Turkey and pay with a repayment mortgage, you will have the peace of mind that your monthly re-payments are not 'dead money' and you are paying off towards something you do actually own.

You have less flexibility than when renting. For example, if you want to move for work or personal reasons selling up and moving on is far more expensive if you own as you’ll have all of the associated legal fees. Also bear in mind that it may not always be easy to sell your home – you’ll be dependent on what’s happening in the market

Renting a property1. Flexibility
Renting allows you to choose pretty much where you like to live. Allowing you to move to a new location or try a new location perhaps as a test before you decide to commit and buy in the area. (You will need to sign a 1 year rental contract. Some landlords do allow 6 month short term rentals)

2. Free from financial responsibility
As a renter you are not going to fall foul of any housing market related conditions. You will of course have to pay rent but you're not tied into monthly repayments on a bigger loan.

3. No maintenance costs
As a tenant it is the responsibility of the landlord to maintain the property and pay for its upkeep. (roof, windows, doors, airconditioning, heating system etc) And if there is a problem with the property it is the landlords responsibility to correct the issue.

4. Try before you buy
Buying a property is a big decision to make and by renting first it gives you an idea of the area you intend to live in. It will also give you an insight into 'expat life' and what you can expect from living abroad.

5. Rental cost v's morgage cost
Sometimes it can be cheaper to rent than to buy. (when paying a mortage)
 If you buy a property for 150k and take out a 60% mortgage, that’s 90k. At a typical rate of 5% over 20 years, that’s an average of 600 GBP a month. On Turkey's coastal regions, where many expat communities live, rental costs are significantly less. And you can find similar properties for half this cost.

6. Keep your money in the bank
Some banks in Turkey offer as much as 9% interest and it may work out cheaper to rent a property and keep your money in the bank. Take into consideration how much the property will increase in value compared to the interest you will get over the year/s? Has properties in the area increased in value?
(Also take into consideration property maintenance, upkeep and/or property alterations)
In some areas it may be financially better not to buy.

Bad Landlords - You may find your landlord takes no responsibility for repairs to the property and may not even care. Or you may be given short notice to leave the property and find it hard to find alternative accommodation for your needs.

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