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10 Remarkable Points While Buying a Property for Investment in Istanbul

Posted on 2 October 2017
Updated On: 30 June 2020

Even though it looks like same to buy a property for an investment as to buy a property for residential purposes, it is quite different than each other. In this manner, we list 10 remarkable points before buying a property for an investment in Istanbul.

1)You should calculate the square-meter of the house well, especially when you consider the different alternatives. The concept of gross and net square meters can change according to location and structure of the project.

2) The house rent multiplier is one of the most important criteria. The house rent multiplier shows that how many months are required to pay for itself. In other words, let’s say you bought your house with 240.000 Turkish Lira, and you rent your house in exchange for 1.000 Turkish Lira, the house rent multiplier is 240. In Istanbul if this multiplier is less than 220 than it is a profitable investment that in many cases it would not fit these rule due to increasing prices continuously.

3) You should not keep thinking that the houses that are under construction are always cheaper. Sometimes, “instant delivery” houses can be cheaper. Particularly, you can catch the better second-hand opportunities if the expectations are failed or market has changed.

4) You should choose locations that are close to social and public facilities, means of transportation. University, hospital, school and transportation opportunities, all kind of public buildings add value into price of your property. These investments do not affect the prices for short term, but they provide healthy increase in prices for long-term period.

5) You should mind which contractor company is constructing the building. The sector is changing into brand-dominant business. Prices of some projects of certain firms increase in time rather than others due to its brand value.

6) The liquidity of house that you want to buy is important. Real estate sector is the one which has the lowest liquidity level which sometimes foreshadow good opportunities in the long run. In particular, the house projects which are located by the wayside are not ideal for settling, but ideal for investment.

7) To follow-up which districts construction companies focus on is vital. If any urban transformation, or centralization of a suburb exists then construction companies go over there which creates an opportunity for investors. Using the first-mover advantage, you may double your investment even in a short while.

8) Do not be impatient to sell the house you bought for investment. You should wait that occupancy rate reaches almost 100% in building estate in which your house is. To make a good profit, sale has to be made after full occupancy rate.

9) If you buy the house aiming an investment, your strategy should be based for long-term. You should make residential investments generally for long-term and at least five years. There may cases that the price is multiplied just in a year, but those are exceptions.

10) You should consider the average rents in the districts. Same rent amounts maybe exist for a cheap and an expensive district.

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