Installment purchase or 100% payment

Constructors in the real estate market, when selling, use many tools to increase sales.

One of the most effective is installment payment.

Installment payment in Turkiye cannot be called the most profitable, but it should not be underestimated either.

How is the process of buying a home in installments?

Let me remind you that the installment plan may be of interest to investors and buyers of real estate for themselves only if you do not plan to apply for a Turkish passport.

The standard conditions for providing installments from the constructor are: 50% prepayment, the remaining 50% are divided in equal parts and paid before the end of construction.

Until you pay the full amount, TAPU will be issued to the constructor, and you can transfer it to your name only after paying the full amount.

Comfortable? Of course it's convenient!

BUT, before making a decision on such a purchase, you need to correctly calculate the economy!

The fact is that in Turkiye the price of 100% prepayment and installment purchase can differ significantly.

In the case of installments, you will overpay 10-20%, which you could receive in the form of a discount by purchasing for cash.

Of course, if we translate this figure into annual, it turns out not so much, the overpayment is approximately the amount of a good mortgage rate.

Investors like to use such schemes, who simultaneously acquire several objects without paying for any of them in full.

This makes it possible to enter more projects with the same budget.

The disadvantage of the installment plan is that its term is very short, which is why the monthly payments are quite large.

When reselling an apartment at the construction stage, you will be offered to repay the loan in full, and then sell it or the installment terms under the contract will be transferred to a new person.