Property Management

How to find winning real estate investment places?

Real estate investment is one of the traditionally most preferred investment vehicles in Turkey. Real estate investment is considered among the most lucrative investments in the long term. Investors, who ask where are the right investment locations for real estate, can read the rest of our article to learn the right methods to find premium regions and properties.

The most important point when investing in real estate is to be able to provide higher returns than the alternatives such as time deposits, foreign exchange and gold after deducting inflation and taxes while selling the property. There may be two methods to achieve this situation which we call real return. Either the house you buy should gain value or you must ken earn while you buy, which means that you have caught bargain flats that are cheaper than their peers.

For the valuation of the Turkish residency, it is necessary to accurately predict the regions that will make premiums. Well-priced apartments are, in a sense, fast escaping investment opportunities. These houses, which are called as bargains, are sold immediately after entering the market. In order to capture these apartments, you need to search the whole market very closely, regularly and systematically and to review the reports of real estate appraisers.

How to capture the right investment locations?

In every city, some regions go through periodic growth processes and come to the fore. Regions receiving immigration, supply and demand equilibrium predominate in favor of demand always make a premium. Government investments play a leading role in making a premium region. In areas where investments such as subway and transportation infrastructure, bridges, highways and airports are directed, square meter prices tend to increase.

Where is the best investment in the city center?

Investment projects that generate profits by making premiums are usually located outside the city and in newly developing regions. Therefore, investment cannot be made in the city center and a wrong perception may occur. In order to make real estate investment in the city center, it is important to catch fast-selling opportunity apartments. If you buy a house under the real estate appraisal report, you make one of the most profitable investments.

As of 2018, there is surplus supply in central and urban transformation areas such as Kadıköy, Üsküdar, Maltepe, Beşiktaş, Şişli, Sarıyer in Istanbul, and for sale projects, square meter prices have decreased and approached construction costs. Assuming that supply and demand will sooner or later be balanced, and that the increase in foreign exchange and inflation will be reflected in house prices, it can be predicted that these prices will rise in the future and real estate will make premiums.

Caution when investing in real estate!

  • Request an independent real estate valuation report prepared by a real estate appraiser from your seller or real estate agent. Find bargain houses that will save you when you buy and keep your hands quickly.
  • Please note that maturities over 5 years are unpredictable if you will finance your investment using a mortgage. Consider that credit installments higher than 25% of your monthly income can push you.
  • Ask your real estate agent to personally measure the net square meter of the house.
  • Make sure your real estate agent questioning the land parcel and zoning inquiry.
  • Perform different levels of risk analysis for condominium and condominium title deeds. If you are buying an impossible house, make sure you find out why the building cannot be resettled.
  • If you are buying the property you wish to buy, hoping for future urban transformation, check for a floor height limit to prevent it. Make TAKS & KAKS calculations according to the land share to your real estate consultant.
  • If you dispose of the house 5 years ago, consider that you will pay income tax.
  • Calculate the lease multiplier to calculate how long your investment will pay for itself. For more information about the rent multiplier account, please read more.
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