Helping Foreign Investors Avoid Unscrupulous Property Developers
The opportunity for unscrupulous activities grows exponentially with the foreign interest in Turkish properties. In fact, many UK investors have reported issues, particularly along the Aegean Coast, with property deals going nowhere despite a sizeable monetary investment. Some property developers have gone so far as to sell the same property to multiple investors, neglected to hand over title deeds, or collected numerous deposits and then fled or otherwise disappeared.
This is why it is imperative for foreign investors in particular, although local investors should also heed this advice, to do their due diligence when it comes to choosing an honest and reputable developer. Along the same line of thinking, it is important to choose a real estate agent or advisor who can help you from a local and international level.
Choosing a knowledgeable and reputable real estate agent will mean that you have a local connection and perspective at every level of your investment interactions. Of course, The Foreign and Commonwealth Office (FCO) is also taking the matter of foreign investment deals into their hands.
Currently, the FCO is creating a list of Turkish property specialists who are deemed to be professional, reputable, and fair in their practices. This list, which will be tailored for UK investors specifically, will be created with the advice of the Real Estate Dealers Association (REDA), Didim Chamber of Commerce (DDC), and local authorities. It is the sincere hope of the FCO that this will curb the number of complaints from would-be British investors who have missed out on a great opportunity or experienced a sizeable financial loss simply because of unscrupulous developers.
Of course, intentionally unscrupulous behavior is just one problem some international investors have faced. There are a few developers who do not mean to cause problems for British investors. Some overzealous developers will begin projects without being able to carry through with promises in a timely manner, resulting in foreign and also local investment capital being tied up for an indefinite length of time. The FCO believes their list will deal with these issues as well.
While the FCO's list will indeed be a helpful tool for foreign investors in general, it does not negate the need for a foreign investor to do their due diligence and seek out the invaluable advice of a reputable real estate, construction, and investment professional. In addition, it is important for foreign investors to be smart when choosing a property in Turkey, alert, and follow their instincts. There is, of course, the old adage. If a deal sounds too good to be true, then it probably is.