The optimal deal that you are looking for in the real estate market within Istanbul is the one that fully meets your needs, fits your budget, and achieves the goal that you must have set from the beginning of the search process. In today’s article, we will talk about some important points that must be achieved to start a correct search process and obtain... On the ideal deal, and then we will talk about the specifications of the ideal deal with real-life examples and general advice at the end.
Points to achieve before searching for the perfect deal:
1-Select your request
If your goal in purchasing this property is investment (which is 90% of the properties sold to foreigners in Istanbul), then you must realize that real estate investment is determined by capital inflation and rental return in aggregate. And not the area of the apartment or the number of its rooms and its view. We noticed through our long experience in the field that the successful investor who made a series of successful real estate investments always focused on these two factors only when starting any investment without expanding on secondary details that may concern the person wishing to live but not the investor.
For example, a property under construction in the city center with an area not exceeding 50 square meters may achieve a much more successful investment equation than purchasing an apartment with an area of 250 square meters on the outskirts of Istanbul or a large villa at the same cost.
However, if your goal in purchasing this property is housing (which is 3% of the properties sold in Istanbul to foreigners), then you must focus primarily on the area of the property, the number of its rooms, and its suitability to your family’s needs in the present and near future in terms of schools, universities, transportation, and so on.
For example, a 3-bedroom property and a living room in the Beylikdüzü area near the highway and transportation line can be considered more suitable for a family of 5 people than a 2-bedroom property close to the city center, or a 1-bedroom property completely in the city center, or even a large villa on the outskirts of the city. .
Note: All the examples we mention here, even if they seem obvious to you at first glance, are real examples and choices made by former buyers who hold prestigious positions and are highly educated, but they were led to believe that these choices were the best for them so that they would discover the truth after a short or long period.
If your goal is a vacation home (which is 7% of the properties sold in Istanbul to foreigners), then you must choose a property that is truly suitable for your needs while visiting Istanbul in terms of location, area, and view, which are the most important of all. The importance of obtaining a property with a distinctive view is often distorted. For a client who wants to buy a property with a specific budget for the purpose of spending the holidays, only to realize later that the property he bought does not meet the specifications of a vacation property. At the same time, there was an option more suitable for his needs in an area that may be farther from the city center, but at the same time it is more suitable for this client’s needs and provides him with a view. Who wants it within his budget.
Note: The client’s decision to choose the property is often influenced by a good-looking sales representative, and what helped in this is the client’s failure to study the available options objectively and impartially, and this is what we will talk about shortly.
2- Study the market well
When a client intends to purchase a property in Istanbul, regardless of the goal he wants to achieve, he must study objectively and impartially the areas of Istanbul first, and the appropriate options for his request that he specified in the previous step, second.
How is the market studied objectively and impartially?
This is a very important matter that the vast majority of clients ignore, as they believe that studying the market means communicating with dozens of brokers and submitting the request (which may not exist in the market at all) to them in order to find the best options and send them to this client. In fact, the market must be studied after Determine the demand before determining the budget. Otherwise, the customer’s expectations will often not match what is on the ground, whether increased or decreased.
Example: If your goal is residential and you want to have two bedrooms and a living room and your maximum budget is 200 thousand dollars, it does not make sense to request a property in the city center within these specifications because the residential property must be spacious and close to transportation, and for this property to be in the city center it must be allocated At least double this budget. But when you communicate with dozens of brokers, this means that you will receive a large amount of fake offers in terms of location, area, and price!
The market is studied objectively and impartially by avoiding obtaining offers specific to a property or project, and instead conducting a study to understand the areas and transportation lines, how they are interconnected, and their proximity to important facilities such as universities, schools, medical and entertainment centers.
Yes, this requires several hours of reading, research, comparison and analysis, but in the result you will be able to build a correct perception of the market and you will be able to discover the skill of the broker who is communicating with you, and whether he was actually providing you with professional advice or was he just claiming.
It is undoubtedly easier to communicate with dozens of brokers and check out some of the random offers they offer, and in the end when visiting Istanbul, meet many of them, and in the end the client will feel lost because the proper perception of the areas of Istanbul was not built from the beginning.
Note: The client who spends enough time to get to know the areas of Istanbul and its features is undoubtedly able to choose the best property for him even without visiting Istanbul in the first place!
3- Determine your budget roughly
Although it is necessary to clearly define the demand and carefully study the market, setting the budget is important, but it does not have to be restrictive. Rather, it is possible to benefit from the best opportunity, even if it is at a price less or more than the budget to be spent.
Example: If you intended to invest $450,000 in order to obtain Turkish citizenship, but you were able to obtain an opportunity at a price of $550,000 and 35% less than the market price, would you stick to your pre-determined budget and reject this opportunity?
If you do this, you are missing out on an easy 35% return on investment, in addition to the investment return made up of rental income and capital appreciation upon resale.
You must know that the optimal deal that you are looking for will not be in the form of a ready-made package with an ornate price. For example, two apartments, each with two rooms and a living room, at a price of 400 thousand dollars and suitable for Turkish nationality. It is certainly possible that this will be a good deal, but we mean in general that the optimal deals are not like this. The arrangement is for one property, for example, at a price of 466 thousand dollars, in addition to expenses and taxes of approximately 13 thousand dollars, but the real price of this same property in the market is 600 thousand dollars, including taxes and other expenses.
4- Execute what you planned
After determining the request, fully knowing the regions of Istanbul and the laws, and determining the approximate budget to be spent, here we can consider that the theoretical part of the process has already been completed. Only practical implementation remains. You may be surprised that a not insignificant percentage of clients, after reaching this step, postpone the practical procedure and thus Wasting all the effort and time spent getting to this point.
Some people may be surprised by our description that this is a complete waste of effort and time, and they may think that this information can be benefited later when they want to implement this process on the ground.
There is no doubt that the market includes multiple variables, and what is optimal today will not be optimal tomorrow, and investment concepts are also variable and appropriate to every circumstance and time, and this in itself makes the delay in taking practical action in itself a reason for choosing inappropriate properties when circumstances differ, as we mentioned above.
In fact, this point is considered extremely important because the longer the decision to purchase the property is delayed, the more conflicting ideas will occur that the customer will not be able to evaluate correctly, especially if he does not study the real estate market in an impartial and objective manner.
Postponing the idea from one period to another is actually very harmful to those wishing to establish an investment in the Turkish real estate market. Postponing means losing the opportunity to seize the price with an additional discount, which means new laws in leasing and taxes. This may cause a decrease in the expected investment return and thus the absence of a clear plan that can be predicted. With its results before starting investment.
What are the specifications of an ideal deal:
- This transaction must be compatible with the customer's underlying demand.
- It must be less than the market price by more than 10%.
- It must be through at most one real estate broker.
- It must be unique and there are not many similar options with the same specifications and price.
The stronger the above specifications, the more distinct the ideal opportunity is. To learn about the most important opportunities available at any time, you can contact us and get a free direct consultation.
