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?
Is property in Turkey a good investment?
You can be one of those who want to figure out “is turkey property a good investment”? In brief, the answer is yes. Properties in the Turkish real estate market promise a good return on investment. When the yearly price increases in sales value and rental prices are examined, it is clear that Turkish properties are a good investment instrument as well as being the right choice for the holidaymakers and immigrants who want to continue their lives in Turkey. Moreover, Turkish properties offer a variety of options to investors such as resale and buy to let investments, student housing, various types of commercial real estate like offices, shops, hotels, etc. Let’s look at the top reasons why you should invest in Turkish properties today.
- Advantageous Exchange Rates: 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 in exchange for their foreign currencies.
- Affordable Prices: A surplus of housing in certain areas presents affordable prices per square meter when compared with other countries dominating the overseas property scene. Besides, Turkey’s late joining to the international real estate market has led to the prices remaining relatively low despite the high demand over the past twenty years.
- Easy Buying Process: Property purchasing procedures are easy and swift in Turkey, which offers a plus advantage for investors. The Turkish government has made a series of regulations to ease the property buying procedures to encourage foreign investment. This has made the buying process easier than ever before. Today, property buyers can finalize property purchasing procedures within three days in Turkey, which is very rare in the world. Related pages; All You Need to Know About Purchasing Property in Turkey
- Luxury Features: Many developers are focusing on modern builds with the latest architecture and advanced home technology. Newly built projects are mostly equipped with smart home technology, and communal facilities like a sauna, fitness gym, and swimming pool. Moreover, some properties in Turkey offer ultra-luxurious facilities such as infinity pools.
- Turkish Citizenship: Foreign buyers who purchase real estate worth $250,000 or more in Turkey and promise to keep them for three years are eligible to apply for Turkish citizenship. Turkish citizenship by property investment is an advantageous program for those who want to make a profitable investment and get Turkish passports with their families, which provides many conveniences to its holders.
So, the market presents many opportunities, but it is worth doing your homework to maximize your potential return on investment. After all, it is a buyer’s market now, and there are some things to be aware of. Here are some of the crucial pieces of advice if you are planning to join the Turkish property market as an investor.
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 is not sold at the desired price to pay off the renovation costs and leave a satisfying profit.
2: Buy-to-let Property in Turkey
Recent reports show that 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. Related pages; Where and How to Buy Property in Turkey?
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
While some buyers have enough cash to pay for a property purchase in Turkey, some buyers may need to finance this purchase through a bank loan. Fortunately, Turkish banks provide mortgages to foreign property buyers, too. However, a much 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. Why pay high interest to banks while you can benefit from interest-free payment plans? See example installment properties for sale in Turkey.
More Advice on Investing in Turkish Property
In this article, we have answered the question: “Is Turkish property a good investment?”. 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.