How to benefit from urban transformation?

How to benefit from urban transformation?

In order to benefit from the urban transformation loan, the building must first be included in the scope of urban transformation. After the contractor is selected, an application should be made to the contracted banks that provide urban transformation loans. You can get an urban transformation loan up to a maximum of 100 thousand lira for an apartment, and a maximum of 500 thousand lira in total if the applicant has more than four or five apartments.

The loan received from the bank is transferred to the account of the selected contractor as blocked. Because the account is blocked, the contractor cannot use all the money. According to the stages of the construction, the contractor presents the production he has made and demands control. The bank receives documents from the building inspection, which controls the construction, and inspects the construction site. The higher the amount of work done until then, the more money the bank gives to the contractor. In other words, if the contractor quits the job while the construction is in progress, or if you don't like the production and stop the construction, the money you will complete the construction is already blocked in the bank account. So the money is kept under protection.

There is no ministry involved in this process. So the ministry just gives approval. Afterwards, you can have your building rebuilt with the loan you use from the contractor and bank you choose.

Note: Those who use urban transformation loans cannot receive rental assistance.

Advantages of urban transformation

Since the urban transformation will take place at the request of the citizens, there are some advantages provided by the state in this regard.

As it is known, there are municipal fees that are high in new constructions. With the urban transformation, there is an exemption from all of these.

Apart from this, contracts in return for flat and construction contracts are made by a notary public, there is an exemption from all notary expenses. After the building is finished, exemption from title deed fees is also included in the scope of urban transformation.

Another advantage of the urban transformation is that the VAT rate in the sale of flats and workplaces is 1 percent. In the current VAT application, VAT on sales is 8 percent and 18 percent, depending on the m2 and features of the flat. When an old building, which has completed its economic life, is included in the scope of Urban Transformation by taking an Earthquake Risk Report, VAT on the sales of new flats is 1%, and a VAT advantage of 7 to 17% per flat is provided.

In addition to the exemptions provided by the state, first of all, you are renovating your old and earthquake-proof building, and now you know that you will not suffer loss of life and property in a future earthquake or disaster risk.

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