Upfront discount or a longer payment plan? Comparing the total cost of two home offers

Compare home offers on matching delivery terms and dated cash flows to identify the payment plan that fits your budget.

One offer includes a substantial discount for paying upfront. Another lets you retain some cash and spread instalments over two years. Calculating the total cost of buying a home requires considering both advantages. The price, payment dates and delivery terms belong in the same table.

Compare matching delivery packages first

Check whether both offers concern the same registered unit or genuinely comparable homes. Different handover dates, furnishings, parking arrangements or contractual features may explain part of the price difference. Obtain written confirmation of the discount’s expiry date.

List dated deposits, monthly instalments, interim payments and handover balances. Establish from the contract who pays title-registration costs, financing, service fees and other expenses. Give uncertain items their own line instead of entering zero to make the figures look easier.

For a prepaid home purchase in Turkey, reviewing the unit plan, site plan, floor plan and technical specifications helps compare what will be delivered. Ministry of Trade guide.

Calculate totals and timing separately

In a hypothetical example, the upfront offer is TRY 4.5 million. The instalment offer requires TRY 2 million initially and TRY 120,000 a month for 24 months. Excluding additional expenses, the instalment total is TRY 4.88 million: a difference of TRY 380,000.

That first calculation does not reflect when money leaves your account. You can also calculate the payments’ present value: discount each future payment according to its payment month and your chosen monthly discount rate, then add the initial payment. State the assumption behind that rate. Since returns on retained cash are uncertain, reassess the result using several rates.

If bank borrowing is involved, add loan fees and insurance costs to the payment plan. If considering early repayment, check the contractual terms. The Ministry of Trade guide explains that fixed-rate and variable-rate loans have different provisions. Home finance information.

Test your budget in the hardest month

Consider how you will meet an instalment before rental income begins. What funds will cover a three-month handover delay or a temporary income reduction? Pay particular attention to interim-payment months: low monthly instalments can conceal these larger commitments.

Show the nominal total, initial cash requirement, highest monthly payment and remaining reserve side by side. If the upfront discount leaves your reserves depleted, assess that cost too. A suitable offer has a payment schedule that can work alongside your household budget.