The era of shared ownership in housing purchases

Unable to buy homes on their own due to prices climbing as housing supply fails to meet demand, citizens have begun making joint purchases. In this developed method, multiple people purchase a single property to become co-owners, allowing them to either generate rental income or reside in the property themselves. Experts, however, have warned citizens against buying homes using this method, which lacks a proper legal framework.

With housing supply failing to meet demand and access to credit decreasing,those wishing to purchase real estate are resorting to different methods. 

By having multiple people purchase a single property, individuals become co-owners. Experts state that this method, which lacks a proper infrastructure, is not sound and recommend that citizens follow the 'Real Estate Certificate' program, which is expected to be announced. 

With the certificate, one can purchase square footage. If the total square footage is sufficient to acquire a home upon the project's completion, the home is purchased; if not, the acquired square footage can be liquidated and sold. 

EXPERTS WARN

Stating that citizens generally invest in housing, Real Estate Investment Expert Olcay Selvi said, "Citizens who want to buy a home are turning to new paths are also applying. Recently, there have been structures that I have also been following via social media. Fractional real estate sales are in question. These are known as fractional real estate sales without a proper infrastructure, where they specifically say on social media, 'If you cannot buy a house on your own, buy it by dividing it into 52 weeks and receive your share of the rent generated by the house for your own week.' It resembles the timeshare sales that were very common at one point. Citizens should follow the Real Estate Certificate program, which we expect the government to announce. With the Real Estate Certificate, you can purchase square footage. It will be implemented in projects that are starting or about to start. During the construction period that lasts for months, you will purchase square footage using the down payment you have. At the end of the construction, if the total square footage you hold is enough to buy a house, you will get a house; if it is not enough, you will be able to dispose of and sell the square footage you purchased. You will also benefit from the profit between the starting price and the delivery price," he stated. 

Selvi said, "Housing has always been an investment vehicle. Housing supply also decreased with the wave of migration following the painful earthquake we experienced in February. With the economic repercussions occurring all over the world affecting us as well, access to housing has further diminished. In this sense, there are a number of efforts underway. Work is being done both on the urban transformation front and regarding new housing production." 

HOUSING SALES TO FOREIGNERS DECREASED

On the other hand, the Turkish Statistical Institute (TÜİK) announced the housing sales statistics for September 2023. Accordingly, housing sales across Turkey decreased by 9.5 percent in September compared to the same month of the previous year, reaching 102,656. 

Olcay Selvi said, "Around 102,000 houses were sold in September. There are various reasons for the decline. Specifically, mortgage sales occurred at around 8.2 percent. This is based on two reasons. The fact that loan interest rates are significantly high and that when buying a second home, only about 22.5 percent of the credit can be used. Here, people who are truly in need of housing or those who do not own a home and are living in rented accommodation The aim was to ensure access to housing. One of the main steps that needs to be taken here is to increase the housing supply. 70.3 percent of total sales were made in second-hand housing. The production shortage in new housing and the fact that land is significantly expensive can be cited among the reasons that reduce housing production," he said. 

Underlining that there is also a decrease in sales to foreigners, Selvi stated, "Housing sales to foreigners decreased by 42 percent in September compared to the same month of the previous year."