Real Estate Fraud: Lands for Investment
January 4, 2018
January 27, 2023
Turkey Dream Apartment realizes that the reputation of the Turkish real estate market is a shared responsibility, and that the confidence of investors is the most valuable profit that real estate companies must achieve. Since the wheel of the Turkish economy is based mainly on mutual trust and the formation of a safe and profitable investment market for all parties.
How do real estate fraud cases take place by submitting land offers for sale in Turkey:
Some companies make offers to their investors about lands for sale with the aim of investing in Turkey, and these lands are near the large state projects, which gives a relative guarantee of an increase in the price of the land in the future. Is this the whole picture?
Unfortunately not, as these lands offered for sale are in uninhabited areas yet and you have not obtained a building permit or permission to invest in them from the municipality. This means that the land cannot be exploited for several years in the future, or for a period of up to ten years or more. The obvious fraud lies in concealing important information about the nature of investment in Turkey from the client.
Where most construction companies follow the principle of participation when they start their projects, if we assume that after several years, when obtaining the building permit, that there is a construction company that decided to make a residential or commercial project in the land area, then it offers the owners of the land to share the land and that the construction costs are involved and all gets party to his share of the property according to the percentage determined by the prior agreement.
That is, the ownership of the land has become joint, and the profit that the landowner obtains is a number of apartments or commercial stores, depending on the type of property to be established. Which may constitute only a small percentage of the profit that can be obtained if the capital is used in more feasible investment projects.
You hear about advertisements about lands for sale in Istanbul near the new airport, which is considered one of the largest projects of the Turkish state in Istanbul today, as it is the third airport in the world in terms of area. Of course, the price of lands adjacent to the airport is on the rise, and it must continue to rise in the coming years, especially with the completion of the airport project and the completion of its accompanying services. However, the lands adjacent to the airport are semi-isolated areas from the city, where services are not available, and there is no building permit on these lands. And logic says that the prices of these lands will rise significantly upon obtaining building permits, and this is very encouraging, but can the investor really benefit from this increase? Can he achieve the desired profit?!
In addition, there are no guarantees of resale on these lands, which means that obtaining a new investor to buy the land again and ensuring that a profit percentage is achieved is the responsibility of the buyer, and therefore the process of reselling it and achieving an actual profit is questionable.
The opportunity cost is high in such projects, while the invested capital will be frozen for several years without any significant profits, in addition to the fact that the increase in the property price will not greatly affect the profit returned to the buyer. We find that there are other investment methods that are more effective and more guarantee to achieve profits and returns. over the same time period. The investment options in Turkey are many and varied, and through the real estate and investment consultancy provided by Kamran Company through its specialized team, the investor can determine the best investment method for him
Since its was founded, Turkey Dream Apartment - Kamiran has been working to detect all real estate fraud attempts on investors in Turkey, especially the unclear fraud methods that appear as a guaranteed investment method, and it is in fact a deceptive method followed by some parties that offer offers of lands for sale in order to invest in Turkey without A real guarantee of profit.