Is it better to invest in new or old real estate?

Many of us have seen fake real estate ads on social media platforms, especially on Instagram and TikTok, which promise to own a house in Istanbul with two bedrooms and a hall at a price of $30,000, sometimes $18,000, and sometimes even $13,000!!

Some did not exaggerate to this degree and chose to advertise a property in a residential complex with full services and close to transportation, with prices starting from $50,000 for two bedrooms and a hall.

But the customer is surprised every time he requests to visit these properties that are in the fake advertisements that the property was sold yesterday!!

Sometimes the customer is in Istanbul and the moment the advertisement is published, he communicates with the advertising company with the aim of visiting the property on the ground on the same day or the next day, but again he is surprised when he meets the sales representative that this property has already been sold!

At the same time, when the customer sees an advertisement for an old brokerage company in the market, he finds that real estate prices for two bedrooms and a hall inside a residential complex start at least $120,000 and upwards.

Here, the client falls into a state of doubt and asks himself the following questions:

Who do you think is the owner of the correct advertisement, and how can this difference be so great?

Is it reasonable for a professional brokerage firm to take $70,000 in profits when it sells me the property at a price of $120,000?

 And is the solution to that continuing to communicate with fictitious companies in the hope of one day obtaining this beautiful property in an integrated service complex at a price of $50,000?

We will answer these questions in today's article, and then we will answer the most important question, which is whether real estate investment is more feasible in old or new real estate with the necessary reasons and comparison, but before that it is necessary to list some important facts:

• Real estate prices in Turkey in general, and in Istanbul in particular, have witnessed a remarkable rise with the emergence of the effects of inflation and the record high prices of construction materials since early 2022 to this day. For those wishing to read the details of the article What are the reasons for the rise in real estate prices in Turkey 2022
• Therefore, everyone who visited Turkey before the beginning of 2022 will find a clear difference in the prices of all types of real estate, new and old, and therefore it is logical that today's prices are not compared to prices two years or more ago.
• Turkey is a country that is taking rapid steps to be among the top ten economies in the world before the year 2030, and work is being done on this through an elaborate plan by the Turkish government.
• The huge projects undertaken by the Turkish government during the past five years are difficult to enumerate, and we mention the most important of them: Istanbul's new airport, the largest in the world, the civilizational transformation project in Kartal, the rehabilitation project for each of the Fikretepe and Kagithane areas, Istanbul's third bridge, the Eurasia Tunnel, the Yalova Bridge, and the Kagithane Bridge. Izmir, Trabzon Tunnel and many more.

At the level of military industries: drones, warplanes, and aircraft carrier ships.

     In terms of technical development: the fully local electric Tog car competes with the best electric                      cars in the world at very reasonable prices.

In terms of energy: the Mersin Nuclear Power Plant, gas discovered in the Black Sea and the Mediterranean Sea, and high-quality oil.

 We cannot fully enumerate these achievements even here because they are outside the subject of our article.

• The aim of the previous idea is to explain that the beautiful and cheap tourist country in the past has become one of the fastest developing countries in all fields, and as a result real estate prices in the past differ from today's real estate prices.

Who do you think is the owner of the correct advertisement, and how can this difference be so great?

Since the real estate market in Turkey is a local market in the first place, the Turkish government did not give much importance to classifying old and professional companies interested in foreign clients in the market with more than 30 employees in a way that distinguishes them from fictitious companies that are sometimes run by one person.

Therefore, those who wish to own real estate will not be able to discriminate while communicating with the real estate broker through the phone call, and since speech is free, sometimes a real estate consultant can persuade a client to buy a property for more than a hundred thousand dollars, distracting his attention from who he deals with and what is the actual age of this company. And how long will it remain in the future when the customer will undoubtedly need services that may extend to many years after purchasing the property.

But there is a large section of clients who are aware of this point, and therefore if this consultant with a fake company presents the same offers of professional companies, he will not have a share of the competition, and for this he resorts to fake offers of different degrees to draw the attention of the customer and hold the first thread with him.

Therefore, real estate prices of $30,000 or less are completely fake offers. As for real estate of $50,000 in residential complexes, they are also fake, but they are a little closer to reality than the first one, at least.

We all know the famous Renault Meganne mid-range car, and today the price of the new year model in Turkey is more than 50 thousand dollars, so how can an apartment in Istanbul be less than that!

Is it reasonable for a professional brokerage firm to take $70,000 in profits when it sells me the property at a price of $120,000?

We mentioned in several previous articles that new real estate prices are announced by the real estate developer who is carrying out construction work in the form of fixed lists that are updated monthly and sometimes bi-monthly, and therefore no brokerage firm can give multiple prices to different clients for the same property.

In fact, the commissions of brokerage firms are determined in annual contracts at different rates with the real estate developer, through which the total sales of the same construction company achieved by the real estate brokerage company are calculated during a full year, and from it you can easily conclude that the real estate broker with the owner of the company that is new to the market has less priority in operations Negotiation and facilitation of payment methods.

The strange thing is that not a few clients choose to deal with an individual broker or work in a new company, thinking that this will save expenses, although the truth is 180 degrees different. Your dealings with a professional real estate broker working in a company with an old commercial record in the market greater than 3 years. Years means that you will get complete after-sales services, no matter how much you request to contact this company, and this means that if the services provided were not of high quality and they have really happy customers, they would not have been able to continue to this stage.

Therefore, it is certain that the professional brokerage firm does not take $70,000 in commission from you when you sell a property worth $120,000.

Is the solution to that continuing to communicate with fictitious companies in the hope of one day obtaining this beautiful property in an integrated service complex at a price of 50 thousand dollars?

 Continuing your communication with fictitious companies causes you to form a false mental image of the real estate market in terms of the best areas for investment, prices, and laws. The best of all is to do your duty as an investor who wants to achieve a high investment return. You study the information with complete impartiality and form a realistic picture of the areas, prices and returns after which you can It is easy when you communicate with a real estate consultant to discover the depth of his experience and the sincerity of his advice to you.

Is it better to invest in new or old real estate?

When you conduct a neutral study of the Turkish real estate market, you will find the following points:

• New real estate upon delivery, its price hike slows down very clearly, and therefore if your goal is to obtain the highest return on capital by reselling the property, it is better that the real estate be in the early stages of construction. At the same time, do not rush to choose any real estate in the early stages of construction before contacting a consultant. A professional who can convince you that the project will be delivered on time.
• Old real estate has lower prices than new real estate for a very simple reason, which is that it is more available than new ready real estate, and therefore your purchase of it at a lower price than new real estate is not necessarily a stroke of luck, but rather it may be a trick made for you by the marketer who is trying to sell it.
• Old real estate cannot be sold easily later, otherwise you would not have obtained this special price when you bought it if a customer with a higher budget than you had available, and therefore do not expect that you will be able to sell it easily later, even at the same price at which you bought it.
• Old real estate is suitable for long-term rental, and the return from it starts from 4% up to 7% at the highest estimate if the apartment is furnished. The 10% returns are dreams promised by the manipulative real estate consultant with the aim of persuading you to prefer this real estate over any other type.
• New real estate projects under construction. The price of the property may increase every year by more than 20%, sometimes up to 35% based on the dollar. Therefore, when you buy a property worth $100,000, you can sell it for $200,000 after 3 years when the project is completed.

In the end, the choice is yours, and Right Home Company includes more than 550 new projects and more than 2,000 renewed offers of old real estate. Whether you want to obtain old or new property, it is available to us. All you must do is contact our team to test the level of our services yourself.