What are the Important Points For The First Time Property Investors In Turkey?
One of the most preferred investment instruments is to make property investments in Turkey. Considering the long term, property investment is among the most profitable investment instruments. If you are first-time property investors in Turkey, you can read this article to learn important points and true methods for property investments.
For the valuation of the owned property, it is necessary to correctly predict the residential areas that will increase in the future. The point to be noted here is that affordable properties are not to be missed. These properties, called a bargain, are sold immediately after they are put up for sale. In order not to miss these properties, the market should be investigated very closely, systematically and it is important to follow the reports of property appraisers like us.
What is Real Return?
The most noteworthy point when investing in property is that after the inflation and taxes are deducted, the property acquires higher earnings compared to alternative instruments such as time deposits, foreign currency, and gold. There are two situations to obtain real returns. The real return shows the increase in the purchasing power of the money supply. If there is no increase in purchasing power, it means that real return has not been achieved. The purchased property should gain value over time or should be earned at the purchase price when purchasing the property. Investments should be made in a property whose sales price is cheaper than their counterparts.
How to Identify the Right Investment Region?
Some regions in Turkey are located in every city the momentum of growth periodically and shows increasing development. High immigration areas such as Istanbul and the districts where the demand for property is intense always provide a profitable investment. Urban transformation, government investments, and incentives are shown as the main factors in the region’s appreciation. For this reason, the steps to be taken on these issues should be constantly followed. Square meter prices tend to increase constantly in the regions where investments such as metro and transportation infrastructure, bridges, highways, airports are realized. These regions, which show a continuous upward trend, are identified as the right investment region.
Where Is The Best Investment Place In The City Center?
Overall, high-profit investment projects are located outside the city and in newly developing regions. Therefore, there is a result that it is wrong to invest in the city center. However, this result will not always be correct. Property investment in the city center also offers important earning opportunities. The most important point to note here is the opportunity to property investment that can be sold quickly. Buying a property under the valuation report is also one of the most profitable investments.
As of 2020, there is an excess supply in central and urban transformation areas such as Kadıköy, Üsküdar, Maltepe, Beşiktaş, Şişli, Sarıyer, and the square meter prices in residential properties for sale have decreased significantly. Considering that supply and demand will be balanced over time, the increase in foreign exchange and inflation will be reflected in property prices, it is estimated that these prices will increase in the future and property will provide high returns.
What Are The Other Points To Consider When Making A Property Investment?
- An independent property valuation report should be requested from the property consultant.
- When buying, the affordable property must be found and treated quickly.
- Those who will finance their investment by using housing loans should not forget that the terms over 5 years are unpredictable.
- The property consultant should be asked to measure the net square meter of the house in person.
- Property consultants should make land parcel inquiries and zoning inquiries.
- Different levels of risk analysis should be done for condominium and floor easement deeds.
- If a dwelling without housing is being bought, it should be investigated why the building could not be resettled.
- If the property you want to buy is bought for urban transformation in the future, it should be checked whether there is a floor height limit to prevent this.
- According to the land share, TAKS & KAKS calculations should be made from the property consultant.
- It should be noted that income tax will be paid if the purchased property is disposed of before 5 years.
- The lease multiplier should be calculated to calculate how long the investment will pay for itself. The rent multiplier is calculated by dividing the house price by the monthly rental income. It helps to determine how long it will take depreciation if the investment is rented out.
- Of course, you should work with a professional and authorized company for your real estate buying-selling processes in Turkey like Property Guide Turkey.