Conditions that define the success of investing in purchasing an apartment in Turkey to rent it out

No one can doubt the exceptional prosperity achieved by the market of real estate in Turkey especially in Istanbul, which has recently become a destination for foreigners from all over the world. The Turkish real estate market has proven its durability despite all the crises the world has beheld especially the Coronavirus pandemic. And there is no doubt that the facilities provided by the government have helped in revitalizing and strengthening the real estate investment in Turkey.

The real estate market has been very volatile in the past four years. In 2017, the housing slump began as the price drop had started in 2017 and continued until the fall of 2019, where the decline stopped and prices started arising to break the record in July 2020 thanks to the loans from the public banks. Consequently, the apartment sales increased by 124.3% in that month compared to the same month of previous year to reach the highest monthly number in history with 229.357 apartments sold. According to the Central Bank's Apartment Price Index, the price of apartments in Turkey increased by 30.8% in February 2020 compared to the same month of the previous year. However, after adjusting inflation, the real rate of increase was 13.1%.

Top ten matters to consider for the success of buying an apartment renting rent it out?

The most essential matter when acquiring an apartment for real estate investment is the revenue that will be collected by this investment. What makes the investment value is calculating the monthly rental income correctly to make a profit from the purchased apartment. Real estate is one of the most profitable spaces for investors of all time. If you are thinking of buying an apartment for real estate investment, you should pay very close attention to the following points:

• You should check the title deed of the apartment

It is important to grasp the legal status of the apartment not only when buying an apartment for investment but also when buying an apartment to reside in. In other words, you should know if the title deed of the apartment is for a house under construction or an existing house that has been constructed.

• You should know the condition of the land on which the apartment will be/ is constructed

At this point, the location of the apartment must be well investigated to know whether the land of the apartment has groundwater, or it an earthquake zone. If so, that may cause problems in the future. Hence, it would be challenging to sell a house on such land; and even if it is sold, its value may not reach the expected figure.

• You need to be a good investigator

To invest in real estate, you have to be a skilled researcher. Disregarding the type of real estate you want to invest in, priority should be given to the areas that have promising future because such areas always achieve good profit for the investor. It is important to understand the processes ongoing, the price of sale, and the amount of renting out apartments in the area in which you plan to invest in over several years. Or you can ask trustworthy and qualified real estate offices in this field such as damasturk Agency.

• The area of the apartment in Turkey

The area of the apartment to be bought for investing in Turkey is important. Nevertheless, in recent years, there has been interest in apartments with humble spaces. These housing types are bought and sold for investment purposes, as they are easy to rent out.

• You should know the service fees of the apartment

It is common sense that renting out an apartment with high service fees is difficult.

• The increase in the rent value must be taken into consideration

The fund you have allocated for the investment is important and if you get back the capital in 20 years, then it is not a profitable investment. Therefore, you should choose apartments with high rental returns. And this is estimated by dividing the apartment's annual rental income by the sale price.

• Pay attention to the location of the apartment

You must pay close attention to this point and take it into account, as it is crucial. It is better for the apartment to be located in open areas that are constantly growing and served with various means of transportation. The value of these apartments increases just like their rental income. However, the features that help in renting out the apartment are the availability of transportation and the proximity to hospitals, schools, and parks.

• Be unadventurous when buying modal or earthen apartments

Purchasing such properties could have an advantage in terms of price. However, there is a possibility that these investments involve risks.

• Manage your budget properly

When you buy an apartment in a residential complex in Turkey, you will encounter many payment methods and offers. Therefore, you have to prepare a plan according to your budget, and you should not forget to take advantage of the returns of renting out your apartment when planning for due payments.

• Existence of social amenities in the area

The availability of surrounding social facilities (school, places of worship, highway, etc.) increases the value of the apartment. These features are required today when buying an apartment in Turkey. So, it is important to have such features available when selling the apartment in the future.

Is buying a rented-out apartment a successful investment?

If you want to buy a “rented-out ready for sale apartment” in which the tenant is not considering moving out and you have no problem with that, you should not forget to:

1. Conduct a new lease contract with the same old information written in the old contract.
2. Ask the seller of the apartment to handle you the deposit received from the tenant in return for the rent.
3. Review the lease agreement between the landlord from whom you will buy the apartment and the current tenant.
4. Ask the owner from whom you will buy the apartment, whether the rent is paid regularly or not.
5. Make sure you meet the tenant who is currently live in the apartment you intend to buy. And make sure that he is a suitable tenant for your apartment.

In conclusion, it is fair to say that Turkey, and particularly Istanbul, is at the peak of its activity in real estate investment, thanks to the appropriate investment environment such as the beauty of nature, the lively social atmosphere, and the facilities provided by the Turkish government to the foreigners to inspire them to invest in Turkey. The investor who purchases a property worth 250 thousand dollars has been able to obtain Turkish citizenship for himself and his family, which has contributed remarkably to revitalizing the real estate market in Turkey.

 

Sources: zingat - t24 - hurriyet

Editing: damasturk