Make a Good Investment by Buying Property in Turkey
Frequently, customers ask if buying property in Turkey is a good investment? Given that over the decades, the focus of mainstream real estate markets has shifted from just finding a home to making a sound financial commitment, this is a good question.
Terms such as flipping houses, capital appreciation, and liquidity are all factors that house buyers are considering. So, to answer this, let’s look at the current performance of Turkey’s housing market. High interest rates have caused domestic sales to slow down, but foreign sales are at an all-time high.
In 2018, foreigners from many countries purchased 40,000 homes in Turkey. This trend has continued through to 2019 and shows no signs of letting down with industry insiders predicting annual sales of 50,000 homes.
However, why are investors are flocking to the Turkish housing market?
Why Buying Property in Turkey is a Good Investment?
1: The exchange rate between the lira and other world currencies is at an all-time high, meaning buyers have a lot more Turkish lira than ever before.
2: A surplus of housing in certain areas presents affordable prices per square meter when compared with other countries dominating the overseas property scene.
3: Many developers are focusing on modern builds with the latest in architecture and advanced home technology. Many newly built projects are mostly equipped with Smart home technology, and communal facilities like a sauna, fitness gym, and swimming pool.
4: Buyers purchasing homes worth $250,000 or more, who plan to keep them for three years are eligible to apply for Turkish citizenship.
So, the market presents many opportunities, but it is worth doing your homework to maximize your potential investment. After all, it is a buyer’s market now, and there are some things to be aware of.
1: Renovation Property: A Costly Investment
Many people dream of taking a traditional home and renovating it, either to sell at a profit or retire in Turkey all year round. However, the cost of upgrading old houses to modern regulations can run in thousands of lira, and in most cases, it does not add to the selling value.
2: Buy-to-let Property in Turkey
Recent reports say self-catering holiday homes cover 30% of the holiday market proving their popularity. However, research the area you plan to buy in. For example, in the Aegean resort of Altinkum, the market is flooded with holiday homes to rent, so will you need to do some exceptional marketing to grab your share.
At the same time, there is a lack of long-term rentals, but these generate a lower income. This is something to consider, especially since you need to pay income tax. As well as marketing your rental home, management is another aspect to consider, including cleaning, maintenance, upkeep, and payment of bills.
You also need to register every occupant to the official government system. Investors who live in other countries often use a management team to handle this for them. Rather than go it alone, consider rental guarantee properties, where the management aspect is done for you.
3: Financing your Turkish Property Investment
To finance your investment, avoid Turkish banks that apply high interest rates to their mortgage plans for foreigners. A better option is to consider buying off-plan with payment installment plans ranging from 1 to 5 years. They are interest-free and allow you to tap into off-plan prices. See example properties here.
More Advice on Investing in Turkish Property
So, to summarise, buying property in Turkey is a good investment, but assess each region to understand what is driving sales and how much future potential there is to maximize your financial portfolio. If you want to speak to a local sales agent to arrange a viewing or for more advice, and tips on entering Turkey’s housing market, call us today.
Also, see our extensive portfolio of apartments and villas for sale and fill in the inquiry form or use the chat messaging feature for more information on any of them.