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Property Investment in Turkey

PROPERTY INVESTMENT IN TURKEY

Turkey’s economy is flourishing due to several factors, including a young and highly trained labour force, a liberal and reforming investment climate, state-of-the-art infrastructure, a prime geographic location, low tax rates, incentives, and a sizable domestic market. The European Union’s Customs Union has been providing substantial prospects for international investment since 1996. All of these elements have been linked to Turkish real estate investments.

Furthermore, investing in Turkey is now more profitable due to economic reforms implemented in the last ten years. To entice international investors, an adequate infrastructure has been developed. Turkey provides a safe environment for foreign real estate investment since both domestic and foreign investors are subject to the same laws and rights.

Turkey has emerged as a global hub for investment, thanks to the successful privatization program, the removal of most bureaucratic obstacles, enhanced taxation, and flexible profit transfer.

When it comes to real estate investing, you have many choices. One option is to buy a single apartment, rent it out, and receive rent each month while holding out for the value to increase to the point where you can sell it for a significant profit. Purchasing commercial real estate can yield financial returns like those of investing in residential real estate. Or you could purchase land and build on it. You have all of these choices if you’re thinking about investing in real estate in Turkey.

The 5W Strategy in Property Investment in Turkey

When investing in a property in Turkey, it’s all about rational decision-making:

Property prices are determined by local area “real estate comparisons.” For example, bank experts and appraisers consider street addresses and zip codes the only true collateral. Real estate consultants make their real estate investment commitments solely upon this appraisal data.

However, more than brokers’ and bankers’ mantras are required to guarantee a return on investment money.  

The bottom line of a successful real estate deal requires an awareness of five fundamentals: Who, What, Where, When, and Why?

A disciplined and structured approach to real estate issues is the cornerstone of our success and your success.

 

Do you have the technical expertise to understand the highest and best utilization of income, comparable sales, costs, and complete value analysis? Without this expertise, you are not an investor. Do you have enough knowledge about real estate investments? Are you the "WHO" to make the right decision?

 

What will it take to get into a deal in terms of financing? You need the skills to conduct meaningful financial analysis and the calculations to support it. Simply "thinking"; the money will always be there for what you consider to be a promising opportunity is never enough to secure the acquisition, even on a short-term option basis.

 

Are you entering a rising, stable, or falling marketplace environment? Put simply, the location of your investment and its market situation in that particular region. Small changes in location can drive thousands of dollars worth of difference in value and profit. And it’s vital to choose wisely, because it’s impossible to reverse!

 

Just because you are "ready" to make a deal, is it the right time to commit to the investment? Real estate success is all about timing. If your timing is off, your chances of a successful outcome are low. Have you carried out research for alternative investments and used units-of-comparison benchmarks? Are your prospective entry and exit calendars realistic or just hopeful thoughts?

 

WHY Turkey ?

Do you possess a specific and substantial rationale for the investment you are contemplating? Are you acquiring real estate for personal use or with the expectation of generating income? The "why" component in the 5W Strategy in Investment is arguably one of the most crucial. Have you meticulously assessed all potential income benefits, including cash flow, tax advantages, loan amortization, and capital appreciation, and juxtaposed them against the worst-case scenario outcome? Have you established precise investment criteria and adhered to them?

Sound decision-making forms the bedrock of every successful real estate investment. This is where the expertise of a seasoned professional, well-versed in both small and large projects, and possessing the ability to navigate clients, partners, and investors through potential obstacles, becomes paramount. Our collaboration with executive and investor clients commences by delineating specific criteria, encompassing equity requirements, cash flow considerations, reasonable return expectations, comprehensive risk assessments, and operational requisites.

The last thing anyone desires at any stage of the process is the frequent "surprise" of unexpected assessments, health and safety compliance issues, or insufficient reserves suddenly surfacing. Those engaged in real estate investments or speculation have limitations, and it is only by acknowledging these limitations that one can aspire to attain a profitable objective.

In matters concerning real estate, our initial step for clients is to apply careful thought and financial discipline to any offer. Working closely with our clients, we steadfastly keep in view all personal, financial, and market realities, ensuring that our client's security is encompassed in the loan documents as we guide them through a structured decision-making process.

 

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt, U.S. president

 

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