Property Guide Turkey

Why to Invest in Real Estate in Turkey?

Foreigners ensures the high demand to invest in real estate in Turkey. One of the most important advantages of purchasing a property in Turkey is the high return. Apartments in residential complexes located in the areas with well-developed infrastructure, are in high rental demand all year round. Thus, they are already rental guaranteed by the nature of the market.

Turkey offers a wide variety of real estate at extremely attractive prices. Throughout Turkey, you can find affordable studio apartments as well as luxurious sea view penthouses and villas. Foreigners are mostly attracted by the coastal tourist cities and cultural capital Istanbul, thanks to its central location. Especially the projects such as Canal Istanbul, Yavuz Sultan Selim Bridge, Istanbul Airport and North Marmara Highway make Istanbul the capital of major construction projects.

Why to Invest in Real Estate?

Passive Income

You can obtain stable periodic income without the requirement of continuous effort by investing in real estate in Turkey. For the best opportunities, the price of the property should surely accord to your budget. It should also match your expectations. You should decide what your priority is. Whether you wish to make an investment or to live in that property. Eventually, you should determine an exit plan.

Diversification Resulting in Increased Stability

The asset class diversification will reduce the risks of your investment. If you do not prefer to take risks, you should not invest in gold, in the exchange market or in a single business with all your money. When you invest in real estate in Turkey, an average of 40 or 50 percent of the funds remain in the real estate. So that, real estate becomes an investment instrument with high return potential.

Possibility of Leverage

Real estate investments have a significant difference from other investment alternatives. It allows you to invest above your income. For example, when you invest in gold, you can only invest as much money as you have. But you can invest much more in real estate than you own. If the return of the purchased property exceeds the cost of the loan, you start making a profit.
In summary, the most ideal leverage for real estate investors; rent income meets the cost of credit. Thus, rental income pays the loan and the value increase of the property remains an extra profit for you. When choosing real estate for the investor, it would be better to choose a real estate that can afford the loan payments as much as possible from rental income.

Constantly Increasing Cashflow

Cashflow is the amount of profit that an investor earns after paying all costs, taxes and loan payments. When rent income is higher than costs, taxes and mortgage payments, continuous cash flow will be generated from this investment. Before you invest, you should evaluate your income and expenses and ensure that the property you want to purchase, is in a place that provides positive cash flow to gives a high return on investment.

Independent Title-Deed Ownership

In Turkey; 3 title deeds are used as flat ownership, construction servitude and land title-deed. When you invest a real estate in Turkey, you will have full control over a source of income independently. Either you can decide to resell the property or make income by renting it out.

Why to Invest in Real Estate in Turkey?

Turkey is a country which the population is increasing each passing day. According to the Turkey Statistical Institute (TUİK) data; population residing in Turkey in 2018, increased by 1 million 193 thousand 357 people compared to the previous year. Thus, the population of Turkey was 82 million 3 thousand 882 people as of December 31, 2018. This figure was 70 million 586 thousand 256 in 2007. The proportion of the working age population in Turkey is 67.8 percent. Istanbul where 18.4 percent of the population of Turkey live, is 15 million 67 thousand 724 people. The population of Turkey in 2050 it is expected to be 94.6 million.

The Rural Population Rates in Turkey

The rural population of Turkey was 14 million 425 thousand 490 in 2000, while this figure dropped to 5 million 115 thousand 275 in 2018. In 2018, the urban population constitutes 93.76 percent of the total population.

Tax Advantages

The tax of income from real estate assets differs according to ownership status when you invest in real estate in Turkey. Therefore, investments in real estate assets are important in this respect. Real estate prices are increasing as days pass. This also increases the value of the capital used in the purchase. On the other hand, the tax related to this assessment occurs only when the property is sold and liquidated. That means the amount of periodical tax you will pay for the property is very low compared to other investment rates.

Inflation Hedge

Inflation rates increase periodically. As a result of this increase, a certain increase in housing prices is observed. But in some cases; the periodic rate of increase of inflation is fixed for those who wish to purchase property, workplace and land from Turkey. This paves the way for an affordable investment. At the same time, the rental price increases parallel to inflation. So you can make a profit on the property you bought at a fixed exchange rate.

Why to Invest in Real Estate in Turkey Now?

Right Timing to Invest in Real Estate in Turkey

The right timing to invest in real estate in Turkey comes with unmatchable profit opportunities. Inflation dropped to single-digit figures in last months in Turkey. Inflation’s sharp decline assisted interest rate cuts. Since interest rates for housing loans declining, demand for housing started to increase significantly.

Accordingly, it is possible to evaluate the period in which mortgage and inflation declines and demand increases as the right time. As a result of these reductions occurred recently in Turkey, we can say that demands have been rising, prices will be increased and it is the right time to invest in real estate in Turkey now before prices rise even more.

A Legal Reference for Residence Permit and Citizenship

According to the arrangement held in January 2017, the property which was purchased to obtain citizenship, must have been worth 1 million dollars. This figure was reduced to 250.000 dollars in September 2018. Therefore, whoever invests in real estate in Turkey worth of 250.000 dollars can obtain Turkish citizenship. They can also benefit from the rights of being a citizen.

In conclusion, Turkey offers important advantages for both domestic and foreign investors. It is in a central position where real estate market activities do not fall. Turkey continues to make investors gain thanks to the rapidly developing economy every day. Turkey is a natural bridge between East-West and North-South. It is considered as an effective exit point to major markets. Therefore, it is the right time to buy a property in Turkey now in order to be an advantageous investment in the long term.

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