Which is better buying a property under construction or ready to move?

Because of the great diversity in real estate market in Istanbul, many investors wonder when buying a property, is it better to buy a ready-to-move-in or under construction property? Especially since the price differences between the projects under construction and the ready projects are very big, especially if the comparison between them is in the same area, in light of the fear of some investors about buying a property and not receiving it, especially since in recent years some investors have been frauded from some companies, and here the role of real estate consultant comes in clarifying the differences between them and when a property under construction is better than a ready one. In this article, we will discuss the difference between under-construction projects and ready-to-move projects, the advantages of each of them as well as their disadvantages, and how to make a decision to buy any of them.

Definition of the property under construction

It is a project that is still in the process of construction and has not reached its final shape, which enables the buyer to see the shape or verify the quality of the finishes used in the interior cladding of the property, and it still needs a period of time, until it is completed for the final shape.

Definition of ready-to-move-in property

Contrary to the previous definition, the ready-to-move-in project is the one that its construction is fully completed, so that the buyer can see the property and its view, as well as the quality of the cladding and the materials used in the finishes.

Advantages of buying a property under construction

• Its price is lower than ready-to-move in the same area
• The possibility of paying with different plans, whether in cash or in short-term instalments, according to what suits the buyer, which does not cause him a burden on his budget.
• The possibility of selling it at a large profit once the project is completed at a rate of no less than 25% of the original price.
• The possibility of making modifications to the design of the interior of the property before construction to be implemented by the construction company, as it allows you to design, modify and divide rooms according to what you want. You can also control the building materials, and all raw materials, and sign the contract according to the agreement with the construction company.
• The ability to choose the property, its floor, and its view in a large way, due to the availability of various options in terms of area, floor height, or even the view of the apartment.
• The possibility of obtaining a large discount if the investor pays the full price of the property.

Disadvantages of buying a property under construction

• The total instalment price may be much more comparing the total price of the same property in cash if the investor decides to pay the full price.
• The delay in the construction company in handing over the project, or the breach in the implementation of the terms of the contract.
• Sometimes the finishes of the delivered apartment are not like the sample ones that the investor saw in the project.
• You will not be able to apply for the citizenship file if you do not receive the title deed for the apartment, if the payment is in instalments.
• Difficulty in renting the apartment or living in it if the purpose of buying the property is to live and move to Turkey with the aim of settling in.

Advantages of buying an apartment ready for immediate housing

• Ease of renting the apartment if the purpose of purchasing is investment and the speed of obtaining a fixed profit return
• Housing and moving to the new apartment in case the purpose of the purchase is to move and live in Turkey.
• Being able to apply for real estate residency or citizenship file in case the purpose of buying the property is to obtain residency or citizenship.
• Being able to inspect the apartment intended for purchase, its location and its view, as well as the evaluation of the quality of the project's finishes on the ground, because what you see is what you buy.
• Receipt of the apartment title deed and submitting to the citizenship and residency procedures
• The absence of monthly instalments may represent a burden on the investor
• Save time and effort in thinking about decoration, finishes, and others.

Disadvantages of buying a ready-to-move-in property

• The available options are limited because most of the options have been sold while the project was under construction, especially with regard to the height of the floor and the view of the apartment.
• Instalment opportunities are almost non-existent, as most construction companies have a cash payment only, and very few of them give instalment for the buyer ranging from 6 months to 12 months at best.
• The difficulty to make any modifications to the interior design of the apartment.
• Chances of negotiating a price or obtaining a satisfactory discount are few.
• The prices of ready-to move apartments are much higher than the prices of apartments under construction, so the ready project is suitable for those who have a larger budget.

What are the tips that an investor should follow when buying a property under construction?

• The assistance of a trusted real estate agency in its work and its integrity, with a good reputation and history in the market of real estate in Turkey.
• Knowing the name of the construction company developing the project, seeing previously completed projects, and making sure of its strength in the construction market in Turkey. It is one of the most important things that the investor must verify to ensure the reputation of the construction company and that it does not have bankrupt or idle projects in the market.
• If the project is under construction, it must ensure that all agreed terms are written in the contract, including the finishing materials and equipment received.

What are the tips that an investor should follow when buying a ready-to-move-in property?

• Ensure about that the title deed safety like it has not bank mortgage or any legal dispute about its safety.
• Get a copy of building quality assurance certificate approved by the authorities.
• Get a certificate of guarantee for the works of finishes and maintenance of the property.
• Obtain a warranty certificate for waterproofing works and maintenance of kitchen and bathroom appliances.

When should the investor buy a ready-to-move-in property and when should he buy a property under construction?

The answer to this question depends on the buyer’s purpose of the property. If he aims to obtain citizenship or wants to buy the property in order to move his life to live with his family to Turkey, it is better to buy a ready to move apartment, 

If he wants to buy it to rent it to Istanbul temporary visitors coming for tourism, the ready to move hotel apartments that are near from the city center would be an ideal option for him.

But if he wants the apartment for long-term investment, the apartments under construction will be the most appropriate and most affordable for him so that he can sell them after receiving them at a profit of no less than 25%.