Guide When Buying Investment Property in Turkey

 

Are you planning to take advantage of the recent dip in the real estate market prices or just want to diversify your investment?   Regardless of your reasons for entering the field of investment property, it would be best if you were well-versed before you decide to dive into this competitive market.  Compared to stock purchasing, which can only cost you a few bucks, investing in this industry requires you to pour in a hefty amount of cash.  You can easily invest 6-figure cash when buying investment property in Turkey. 




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Essential Tips When Buying Investment Property in Turkey

 

There are myriads of challenges that abound in the current state of the real estate market.  People who choose to invest without any preparation may find themselves in a difficult situation.  The cost of real estate properties is steadily increasing, making you think if it is the right time to invest in the real estate market.  Based on the numbers released by NAR (National Association of Realtors), the reduced interest rate will continue to attract buyers.  The current trend in the market is projected to continue for the years to come.  Your first deal will often be the most challenging when buying investment property in Turkey since you are still learning the trade.  However, do not fret as we give you some of the tips that you will need.

 

Understanding Your Credit Profile

 Buying Investment Property in Turkey

The first thing you will need to do when buying investment property in Turkey is to look at your credit standing.  It will allow you to have a clear perspective about your credit profile and identify mistakes that you will need to dispute.  After you receive your credit report, seek the help of the expert before executing any action.  If you are not qualified for a particular loan, take this time to improve your credit score.  If you don’t have the time, you may look for private mortgage investors as your partner.

 

Choosing When Buying Investment Property

 

After you understand your credit profile, it is the right time to narrow down the sorts of investment property you want to buy.  You may seek the expertise of the tax advisor to find out which type of investment property offers better financing.  You need to understand your goal when buying investment property in Turkey.  You may look at a rehab structure, repair it and sell it for quick cash, some people favor the preconstruction, and some opt for rental properties. Regardless of your purpose, make sure that you understand the numbers, including the cost of repair, advisor fee, upfront fee, down payment, and financing.  Make sure that you will be able to afford the mortgage or need the help of private mortgage investors.

 

What to Do After?

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After considering the tips provided above, it is now time for you to secure a loan that will help you in buying investment property in Turkey.  You need to gather the necessary documents first, such as your divorce paper, bankruptcy notes, Social Security, driver’s license, and proof of steady income.  If this is your first time, we advise you to assemble your team of professionals such as accountants, realtors, real estate lawyers, private mortgage investors, and an experienced insurance agent.  Seeking their help will let you understand a problem before it even turns into something significant.

 

 

Essential Guide When Buying Investment Property

 solicitor fees for buying a house

Make sure that you will arm yourself with essential information before you decide to become a tycoon in real estate.

 

Ensure That This Industry is For You

 

Do you have a knack for repairing tiny problems on your property, such as fixing the drywall or unclogging your toilet?  Do you have any idea how the essential tools inside your toolbox function?  In this industry, you will hire a professional service to do the job, but when you are just starting, there is a good chance that hiring experts will drain your profit completely.  Buying investment property in Turkey for the first time requires you to conduct DIY repairs.  If you have no idea how to get the job done, then this industry may not be suitable for you.  During the initial years of your investment, your goal is to be aware of the various elements of being a landlord.

 

Be Sure to Have the Desired Amount of Down Payment

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Buying investment property in Turkey typically requires a significant amount of upfront payment.  In addition, it also requires a long stringent process to get approval.   Remember that the 3% down payment that you usually make when buying residential property will not be acceptable in the investment property.  You need to have the capacity to provide at least 20% since mortgage insurance is not generally accessible in rental property.

 

Interest Rate

 

While it may be true that the cost of borrowing cash is considerably cheaper today, the interest rate associated with buying investment property in Turkey is significantly higher.  Choose a property with a low mortgage payment to ensure that it will not eat up your monthly revenue.

 

Calculations

 

Precise calculation is essential when buying investment property in Turkey.  You will need to calculate your margin and your operating expenses.  Operating expenses are one of the high costs in managing an investment property.  On average, it should cost you about 35%-80% of your operating income.  Furthermore, you should also consider the cost of the property.  Expensive properties also come with heavier recurring expenses.

 

When buying investment property in Turkey, you have to remain realistic.  Like most business ventures, the investment property will not generate a considerable amount of cash at the beginning.  Make sure that you choose a trusted partner in this industry that will help you create better decisions.

 

Why Spend on the Investment Property in Turkey?

solicitor fees for buying a house

The experts have spoken; Turkey is one of the best places to invest in real estate property.  This notion is supported by a massive 78% increase in investment property in Turkey in the past few years.  The city of Istanbul is still the central drawer of investors in the property investment project.  In the earlier years, Turkey's major investors are coming from the UK, but recently, they are also attracting investors from Europe and the Middle East.  Who wouldn't be interested in the investment property of Turkey? Experts believe that it is the safest place where you can invest your money.

 

Why the Investment Property in Turkey? It is Cheaper!

Turkey is one of the most sought-after tourist destinations. It has been named time and again as the no.1 place tourists love to visit, with more than 30 million tourists visiting the country per year.  That number alone is significant to spend your money on investment property in Turkey.  Additionally, the cost of real estate properties, such as apartments in Turkey, is significantly lower than other parts of the world. Apartments here can go as low as £35,000 for the most basic and £60,000 for the more luxurious one.

 

Strategic Location and  More Relaxed Regulation

 Buying Investment Property in Turkey

It is only a lot easier for overseas clients to buy investment properties in Turkey.  With the current rules and regulations implemented by the government, the investors will conclude the purchase of the property a lot sooner.  It is also located in a very strategic location, close to the UK, allowing the British to fly to this country when searching for a warmer climate.  It is also near the European Continent, which only takes around 4 hours to reach the place.

 

The country is also home to many brokerage firms and real estate agencies that can work on your behalf.   You do not necessarily have to be physically present, and an agent can update you about the progress.  Your plan to purchase investment properties in Turkey will continue rolling with the help of a real estate agent.

Apartments in Turkey

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Generally, the apartments in Turkey are of high quality, but we still advise you to look at the property before purchasing it.  You have to guarantee that you are investing in the right one.  Remember that the investment property in Turkey will be yours the moment that you finish the paperwork.  The chances that you will get a refund from your property investment project are just too slim.  That is why we advise you to conduct a thorough inspection before finalizing the purchase of the properties.


Things to Consider When Buying Investment Properties in Turkey


Buying investment properties in Turkey is one of the biggest decisions you will make. The real estate industry of this country is in great condition despite the current events. It boosts the confidence of the investors to invest their hard-earned money into a lucrative market. However, when you are shopping for cheap properties in this country, there are things that you still need to consider.

 

Do not Rush

 

Buying Investment Properties in Turkey

You need to be aware that you have many options when choosing investment properties in Turkey, so you don’t have to be hasty in your decisions. Some real estate brokers may do hard-pressed selling but do not fall into their trap. Take as much time as you need to explore the different options. Find various brokerage firms and agents to guarantee that you will get the best choice. Also, make sure that the agent you will choose is armed with the right amount of knowledge about the real estate industry of this country.

 

Preparing the Paperwork

 Buying Investment Properties in Turkey

Buying investment properties in Turkey also requires you to complete different paperwork. However, do not be wary about this; if you hire the best brokerage firm, you will end up doing a minimum amount of work as opposed to the usual. The closing of the deal will even be more convenient. Nonetheless, you need to be aware that you still need to be there to prepare the paperwork and documents required during the beginning and the end of the buying process.

 

Negotiating

 Buying Investment Properties in Turkey

Many overseas buyers who want to invest in property are not aware that negotiating with the price of the investment properties in Turkey is highly advisable. Their decision to avoid the negotiation is primarily due to the low cost that comes with it. However, just because you think that the property comes with a very affordable price, that doesn’t mean that you are no longer allowed to negotiate the price. You need to study the current movement of the real estate market to determine if you are getting a great offer or you can still significantly reduce the price.

 

By choosing investment properties in Turkey, you are allowing yourself to own a property in one of the most stunning places all over the world. Regardless of your original reason for purchasing a house in this country, you may also choose to lease it to the large number of tourists who are planning to take a dip in the beautiful shoreline of Turkey.

 

About Investment Property of Izmir, Turkey

 Buying Investment Property in Turkey

Located in the western part of Turkey, Izmir's urban territory reaches out across the Izmir Gulf and in the north along the Gediz River. It stretches over a vast plain toward the east and on the bumpy landscape on the southern part. The central city is comprised of eleven districts. The more significant part initially looked like quaint towns; however, these places have already been blended with the central city. Every locale has its particular attraction and charm.  The primary benefit when you buy property in this part of Turkey is that you will have the city quality of life with the most beautiful beaches just within your reach.  A cheap house for sale in Izmir is a clever investment property.

 

Izmir, the Top Destination for Investment Property in Turkey

 Buying Investment Property in Turkey

Based on the statistics, the value of homes for sale in Izmir has increased to 15.9%, which is 3 points higher than Ankara.  It is because of the rising demand for investment properties in the region.  The statistics show that the increase in the real estate industry in Turkey contributes a massive 3.8 growth in the economy of the country last 2015.

 

Foreign Ownership

 

The increase in the real estate industry of Turkey was boosted by the enacted law that allows foreign citizens to purchase homes in the country.  In general, most European citizens (except Slovakia, Czech Republic, Cyprus and Belgium), North America, Latin America, Africa, and Asia can freely purchase investment property in Turkey.  However, there are minimal restrictions on foreigners buying one, such as the prohibition of acquiring land near a military facility.

 

Should I Hire a Solicitor?

 buying property in turkey

Having a solicitor when buying off-plan property is not required; however, it is recommended.  With just a minimal fee, you can ensure that the luxury house you will acquire is clean and priced reasonably.  The solicitor fees for buying a house are but a small portion of your entire expenses in buying investment property in Turkey, so why do you have to risk it on your own when you can acquire the help of a solicitor.  Furthermore, your solicitor can ensure that everything goes smoothly even if you are not physically present in the Izmir region.

 private mortgage investors.

With its booming real estate industry and high influx of tourists annually, there is no question why investors are highly considering buying investment property in Turkey.  The support of the government even adds to that factor.   People in the Western part of the globe gather in this region because of the warmer climate.  Some of them decided to acquire cheap houses in this area and chose to stay.  Buying property in Turkey is indeed a good investment choice.

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