Real Estate Investment Returns in Turkey
Real estate investment is the investment that belongs to the real estate sector department and means the profit operations available such as buying, selling, renting and mortgaging real estate of all kinds and forms, which has attracted large numbers of real estate investors to it and made them guarantee success in these real estate and abundant profits through this investment.
The investment in Turkey is known as one of the best investments in the world and is distinguished from others by huge profits that the investor gets and are added to his capital.
Types of real estate investment in Turkey
There are many types of real estate investment in Turkey's real estate, which is witnessing a great demand by investors and tourists, especially those interested in the advantages of investing in this region and the investment process comes after buying the property immediately so that the options become open to the investor to choose the appropriate method and these types are:
1-Real estate sale
After the property is purchased by the investors, then the process of selling the property begins, and the sale process takes place in several stages and steps that the investor takes meticulously.
-Displaying the property on real estate advertising programs run by some real estate programs or companies that are interested in real estate, especially those offered for sale.
-Evaluating the property financially, setting a reasonable price that suits the situation of investors or real estate companies, and ensure that the buyer’s data is correct before signing the official papers.
-After that, signing the contracts necessary for the sale process and making sure that there is a notary who supervises the writing of the contract, or that the process of signing contracts takes place in a government department specialized in real estate matters.
-Receipt of the deposit, which is a sum of money or a small part of the price of the property agreed upon between the two parties, and it is paid upon signing the contracts in advance in order to establish the sale process.
-Transferring the ownership of the property to its new owner and paying the old fines, after the buyer pays the full amount and receives the keys of the property.
As for the financial returns related to this type of investment, they are large and abundant and give the investor good financial returns and benefits in terms of profit. This is due to the continuous rise in real estate prices in Turkey, which is an indication of the economic development taking place in this region, especially in the past few years, in which Turkey has witnessed a renaissance at all levels and has become comparable in its development to the great European countries.
2- Real estate rental
Real estate rental is the method with a large and wide spread in all cities and regions of Turkey and this spread and expansion came due to the great demand for temporary residences in Turkey, especially since the leasing process is a temporary sale or ownership of the property so that the land owner places some conditions on the tenant to ensure the payment of the monthly rent that is agreed upon. It must be between the two parties before signing the lease contract, which is done between the two parties and includes terms and conditions that the lessor places under the supervision of a notary or in a government department specialized in registering real estate.
In this way, the ownership is not transferred to the buyer permanently, but rather it is a temporary process for temporary housing, and leasing attracts a large number of investors or tourists who come to spend certain needs in Turkey, such as tourism or marking some papers from government departments in Turkey or to visit relatives or spending summer holidays in the picturesque beaches of Turkey. As for the financial returns, the leasing process is characterized by the fact that it preserves the capital without loss and remains as it is, and the profit is limited to the monthly rents paid by the tenant.
3-Real estate mortgage
Mortgage of real estate is placing the property on mortgage for the reference of another person for a certain period until the end of the mortgage and its expiry. As for the financial returns, this method is characterized by the advantage of the leasing process, which is not to lose the capital, but the property owner must make sure that his property is received as it was delivered without loss in furniture, decoration, internal and external construction of the property, and the owner benefits from the price of the mortgage and is considered his only profit.
4-Real estate broker
The real estate broker is the link between the seller and the buyer or the lessor and the tenant and is a mediator in defining and bringing these two parties closer together. This is done through a real estate company or a real estate office so that the broker has a list of properties available for sale or lease and the specifications of these properties in order so that there are specifications of these properties next to each property and next to it there is also its price and method of investment, and what is meant by saying next to it is any mentioned near it, either in electronic or written form, and this is mentioned in the form of real estate offers that are published in various and multiple forms to customers. As for buyer, the real estate broker receives him well and presents the real estate that conforms to the specifications required by the buyer.
The purchase contract and the items placed in it are determined and the broker facilitates the purchase procedures for both parties. As for the financial returns, the broker has specific returns and according to the number of properties that he mediates its sale process in the real estate market in the region.
Financial returns from real estate investment in Turkey
The financial returns are the main objective of the real estate investment process in Turkey, and these returns are in the form of financial profits and amounts added to the capital owned by the investor. This amount or profit is affected by several factors that make the profit in a property greater than other properties.
These factors are the following:
1- Property type
This is a key factor in determining the financial returns, as investment profits differ from one property to another, such as apartments, villas, houses, hotels and other types of real estate, some of which have a small profit and some of which have large and sometimes huge profits.
2-Property specifications and features
The specifications of the property play an important role in increasing and decreasing the financial returns that the investor who invests in real estate gets in Turkey. These specifications are represented in the location of the property, the city in which it is located and the surrounding lands as natural areas, residential apartments or historical places, as well as the view of the property, its area, its urban design and the infrastructure and many other features and specifications.
3-The method used in real estate investment.
4-Intervening real estate company
The real estate broker or the real estate company contributes to raising the profit and financial returns through real estate offers that reduce the capital used in the purchase process.
5-The time period after purchasing the property
The period of time after purchase in which the investor leaves the property before investing it has a major role in increasing the financial returns and profits that the investor gets through this property, due to the rise in real estate prices after each year.
6-Experience and real estate acumen
It also has an important role in determining the investment profits that the investor gets.
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