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.
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
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?
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
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
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?
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
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
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
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 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
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
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
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?
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.
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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