The Hidden Costs of Buying a Home
There could be a lot of unexpected expenses in this process, which can be challenging for homeowner candidates. Therefore, you can use the In addition to the price of the apartment for sale, you should decide on many different issues such as the year of construction, building material, location and payment options and adjust your budget accordingly. If you are not working with a real estate agent, these processes can become more complicated. Moreover, the budget you set aside for the purchase may fall short of the prices you need to pay in a way you didn’t expect. So The Hidden Costs of Buying a Home:
By law, the property tax rate of the houses is as follows. It is 0.2% of the market value within the metropolitan boundaries. In non-metropolitan municipalities, it is 0.1% of the market value.
For commercial places, the rates are changing. It is 0.4% of the market value within the metropolitan boundaries. In non-metropolitan municipalities, it is 0.2% of the market value.
The taxation for the property is made annually and the tax is paid in two installments during the year. Click here for taxation periods and the property tax payment deadlines.
Compulsory Insurance (DASK)
DASK is a type of insurance which is obligatory by law. This insurance covers natural disasters such as earthquake, fire, etc. This insurance should be renewed on a yearly basis. Insurance costs vary according to the size and quality of the property.
Proverbially, as much as the gas, water, and electricity are used, bills will be heavier. In Turkey, the main services paid by the bill are gas, electricity, water, and the internet. These bills come on a monthly basis and paid by the resident.
While subscribing for the gas, water, and electricity, there is a security deposit should be paid. You may find the deposit amounts for an average house.
Title Deed Fee (TAPU Harcı)
According to the Law, the rate of title deed fee is 4% of the sales price. The title deed fee is paid by the buyer and seller over the sales price. Depending on the deal, title deed fee payment terms are changing. While some owners require the buyer to pay the whole fee, some of them ask to share it in half. On some occasions, the owner pays the fee and the buyer doesn’t need to pay it at all.
Agent’s Service Fee
As it is well known, real estate agents work on commissions. This another important factor in the calculation of the costs of purchasing the property in Turkey. They are only paid when they complete a property sale. Therefore, they don’t receive any payment until after settlement. The standard commission rate in Turkey is 4% of the sales price. Depending on the deal, the agent’s service fee payment terms are changing. While some owners require the buyer to pay the whole commission, some of them ask to share it in half. On some occasions, the owner pays the commission and the buyer doesn’t need to pay it at all.