How and Where to Invest in Rental Property in Turkey?
Buying a property is a challenging process on its own let alone renting it for someone else's usage. Even though you will profit from the process, it requires thorough research about the laws and regulations as well as the property values. If you have already owned a property or are thinking of investing in real estate in Turkey to rent, we hope this guide will ease your decision-making process.
The type of property you want is closely related to your initial vision. If you are looking for a summer house, for example, the property type will change accordingly. However, this is not the only criteria when choosing a property type. How many members you have in your family, your job, and even your pets can change the property type you need. If you have either owned a private villa or a big apartment with enough bedrooms, renting to families only may be the ideal for a stable income, rather than seasonal.
Families do not make the only source of permanent income. If your property is in large university cities like Istanbul, Ankara, or Izmir, you are guaranteed a 10-month income with 2 months to renovate the apartment. Just make sure to choose an apartment or house that is close to transportation for an easier rental process and an increase in the rental value. Therefore, make sure you choose the right type of property for your circumstances.
Some landlords in Turkey rent their property for the long term (1-year minimum) and much the same as in western countries. The return of your investment varies depending on where you choose to buy the property. For example in the holiday coastal town of Bodrum, rental prices for a fully furnished apartment average between 2000-3000 lira a month but head north to Istanbul, the most expensive place to live in Turkey, and expect to pay 4000 lira and more for a 3 bedroom apartment.
Renting a property is the easiest part, but the process of finding the right location is not, and comes with all sorts of problems. A mistake made in any of the process could lead to much bigger problems in the long run. Another problem may occur due to the property itself. Be careful with each step you take and always be suspicious of the offers that are too good to be true. It is better to stay on the safe side.
When you are preparing the rent contract, or taking the first step to a real estate purchase, try not to go for a bad agency just because it is cheap, or do not go with a translator who is not a professional in the field due to the prices. Make sure to choose reliable and professional agents, lawyers, and translators who will make everything much easier for you. As Istanbul Real Estate, we have a portfolio of decades of helping foreigners on their process to buy real estate in Istanbul.
Why Turkey?
Turkey has plenty of beauty to offer for anyone planning to reside in the country. Even though it sounds great to imagine living abroad, there are lots of things to consider before moving to a country you know nothing about or have limited information. Every decision should be personal and not an obligation.
While foreigners are guaranteed a Turkish citizenship through a $250.000 real estate purchase, the amendment that allows them to gain citizenship also supports multiple property purchases as long as their collective -after taxes- a sum of cost is more than 250 thousand USD before taxes. These tax returns are filed every four years, and the rates range between %0.1-0.3. Even though the payment is made in USD, the price will be written in Turkish Lira on the title deed. The exchange rate will be according to the current day’s effective selling rate of the official Turkish Central Bank. You can read a more detailed explanation of how to gain Turkish Citizenship on our website or contact us for more information. Real estate investments are significantly influenced by the state economy and political stability. Turkey, as the connection point of two different continents, is the best candidate for real estate investment in the region.
Where to Invest in Turkey for Rental Income?
For being the most populated city of the region, Istanbul carries both the title of most affordable and most luxurious apartments in all Turkey. If Istanbul is the city you wish to cater to. Be it for 1+1 to 4+3, the city leads the real estate market in Turkey r. If you need a 1+1 apartment to rent to students, districts like Üsküdar, Bahçeşehir, and Şişli are the right place.
Istanbul, with its 16 million population is almost its own country in the 80 million population of Turkey. Through the roots on two different continents, Istanbul is home to many districts that are not just historically and culturally, but naturally beautiful districts. Istanbul is a unique city known for being home to many historic landscapes and being located in both Europe and Asia continents.
At the moment, the Üsküdar is home to the most competitive property prices ranging from 69.3 thousand to 185.900 USD. Üsküdar is an up and coming district for its local business shops, university, and the seaports that cuts the travel time to Beşiktaş by %90 percent. The 85 m2 project located near the E-5 highway, the new Avrasya Tunnel, as well as the marmaray and the seaport transportations make the property the ideal location for purchase.
Ankara
Surrounded by mountain ranges, Ankara is Turkey’s capital city! Once a small town, Ankara has grown exponentially since the foundation of the country in 1923 and is now racing with Istanbul in terms of city development. The city offers plenty of affordable houses with a large number of rooms in competitive pricing with those that stay around 2+1 or 3+1 range. The capital city of Turkey is known for its higher education schools. In Ankara, you can purchase multiple apartments around the 100.000 USD price range, where you can leave them for future investment opportunities.
The Riviera of Turkey; Aegean and the Mediterranean Coasts
The coastal towns of Turkey are known for its touristic ancient destinations, warm weather and beaches, and delicious food. Yet, people often skip over just how many others live in these regions in the off-season. Cities like Bodrum and Marmaris still attract millions of tourists off-season. Cities like Izmir and Antalya are renowned for their quality education. While the former cities have about 7 million population combined, the young generation makes most of the people living in them. In Antalya alone, 19 million tourists have visited in 2018.
Coastal towns of Turkey are the perfect getaway spot for those who are bored of the concrete jungle that is Istanbul. There are plenty of summer houses that are being rented during the off-season for those who wish to experience a glimpse of summer in winter times, as cities like Fethiye and Kuşadası rarely go below zero degrees Celcius in colder seasons. As coronavirus pushes people to stay away from one another, the value of these districts will only go up.
Bodrum
A 3+2 apartment on sale for 350.000 USD in the ancient, historical, yet highly alive city of Bodrum will offer anyone the privacy they seek by bringing the Aegean Sea right by their feet. This unit is 150m2 and comes with its terrace, as well as Air Conditioning for that hot summer weeks.
Izmir
The city now competes with Istanbul and Ankara in popularity, and its touristic attraction alone is enough to keep the province interesting for decades. Even though the city had been through a lot of invasions, wars, and disasters, it managed to rebuild itself to its previous state. Today, Izmir is a metropolitan city and the third most populous city in Turkey.
Those who wish to rent their property to a family or a group, will find the perfect apartment by a forest and on the edges of the city center. This 160m2 apartment for sale in Izmir is a 3+1 with 2 bathrooms located by a private apartment complex. While the apartment complex comes with a private pool, playgrounds, and security, its prized possession is the magnificent view of the Aegean Sea. The residential units at this location starts from 93.100 USD.
Antalya
A 4+1 for 235.200 USD in the ancient, historical, yet highly alive city of Kaş offers a secluded lifestyle right in the heart of the community. This unit is 510 and comes with its terrace, pool, as well as Air Conditioning for those hot summer days.
