Investing in Istanbul

Common Pitfalls of Real Estate Investing and How to Avoid Them?

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Common Pitfalls of Real Estate Investing and How to Avoid Them?
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Real Estate is a great long-term investment. It is an excellent choice if you’re looking for a long-term project that will keep paying dividends over time. So it is one of the safest investments you can make because it’s tangible and has intrinsic value. And when we mention investing in real estate,  Turkey is on the front page to consider.

Yet still, while it can be the best lifelong investment, many prospective investors find themselves holding back by some fears that can make the process overwhelming. However, facing these common fears with facts can ease the way for a more confident investing experience. In this blog we will address these common concerns and we will provide clear-cut insights to get you covered. 

 

 

1- Should I buy now ?

 

Today's International Real Estate market has reshaped all over the world. Turkey is above all, we can say today that the market here has become mature and setteled therefore, it's ready and on call for aware attentive investors who really recognize data and numbers. 

To start with, people will always need houses. That implies that there will always be a need for rental properties, regardless of the state of the economy. Rental properties are always in demand. Property value tends to increase over time due to inflation, but there’s also the possibility of rental income from the property itself.

So basically you can make money when it comes time to sell real estate because its value tends to rise over time. Over time, rents also tend to increase, which might increase cash flow. So if you ask yourself should I buy now? You better do it as soon as possible. But which property do you go for ? 

 

 

2- So many offers. Can't decide which?

In such an everyday polymorphous market such as Istanbul, it's so prevalent that buyers consult too many brokers and end up with an overwhelming list of property options and feel puzzeled and unable to decide. But there is another approach, instead of choosing your property based on the prices and options presented to you by brookers and then put the blame on them, you better focus on identifying the best location for your investment plan because the location suitability is the most critical factor for real estate investment success in Istanbul. Once you've pointed to the ideal location, you can manage your strategy to decide which one fits your investment plan. 

And this point leads us to the next one which is very important, you have to get your plan ready before proceeding.

 

3- how to make sure it will be a good investment?

In easy terms, in order to make sure of your property to be a good investment you should sketch your strategy to make good use for the profit. First, get the big picture and determine how long you plan to rent the property and develop strategies to mantain and increase its value for future sale. The real challenge lies in going over the local flip-flop of the market, especially for foreigners buyers who might be unfamiliar with the daily changes in rental and selling prices. At Right Home we take this mission to secure the way for you. You may check our related articles and blogs in regards.

 

 

4- How to guarantee delivery in time? 

So many buyers fell into the trap of purchasing a property without a guarantee for the delivery time. Since the market is full and brokers are everywhere, you better not trust anyone who tells you “trust me”. Reputation here is very important.  So you have to investigate the track record, Look for reviews, testimonials, and case studies from past clients. Check their credentials and years of experience in the industry. As well as, you should track the construction company's record, look at their past projects to see if they were completed in time and met quality standards as promissed. Finally you better understand contract terms and make sure it includes a clear deadline with mentioning the month and the year at least. Noting that a trustworthy broker will deal only with a trustworthy construction company and will ensure you with a proper contract so once you choose the right broker you will hit three birds with one stone.

 

 

5- Can't afford the cost at once!

Prices are skyhigh and all types of projects are really overpriced. Yes everyone is claiming this,  which is the case unfortunately. 

Yet again for the sake of transparancy and accuracy because we believe that the buyer today should be aware of all circuit stations. Here is the reality scoope.

The cycle starting from the construction company down to the buyer purchasing is the first reason that leads to these extravagant prices which is so normal in such a lively market. 

So the longer this cycle was, the higher the prices went. Here the challenge occurs is finding the right realtor who will shortcut this cycle for you and get you the property from the owner. 

As long as you are dealing with the direct seller without any midhand you will have the real price of the property with convinient instalment plan. 

 

 

6- Which realtor is the right one?

First , you need to understand that you have to chase the right broker, not the right broker will chase you. What does that mean? In this large wide market with everyone getting a logo and some projects offered, claiming they are ethical and reliable brokers and they have the experience needed while the truth is not, in order to really know which agency is telling the truth you need to delve deep in their website and check their content. Because good brokers will keep providing insights and fruitful information in addition to real statistics and study the market. The right broker respects buyers' visions and his intelligence, they don't need to draw fanatical attention for buyers and put them in delusion just to sell them. 

 

 

 

7- What about Earthquake Assurance?

 

Since 2012, when the concept of real estate ownership in Turkey began to gain traction, many investors have become familiar with the local market specifics. However, there's still confusion and better to say disorientation about evaluating the project' safety before purchasing. Would you dare to risk investing big money in a lifelong investment without thorough research and real assurance? 

The answer is NO. 

First you have to select a realtor who is not only professional and honest but also knowledgeable about the technical aspects of construction. Second, you need to verify compliance with the building code of earthquakes and seismic design. This code is must-have for ensuring that the building is earthquake-resistant, designed to endure any expected ground vibrations and seismic loads. 

For all intents and purposes, the level of earthquake resistance required depends on the geographical area and seismic classification of the site.

All in all, confirming compliance with the engineering code is a critical step before proceeding with any real estate investment.

 

 

8- Political neutrality and my investment stability!

If you have concerns about political stability and its potential impact on the real estate market, you are totally right to consider these factors. Politics can indeed influence your investment profits. Here's what you need to think over:

Turkey has proven already its unique geopolitical position, clear as mud with both Europe and Asia which has shaped its political figure to the world. In recent years, Turkey has experienced different alternatives which may cause concerns among investors, and that is totally understandable, in all countries around the world when the state is having some political big events occurring, all investors should have their guards. However, it's important to recognize that Turkey has a strong solid economic growth and to a certain point foreign investment is one important factor for the government to keep such growth. So whatever happens in Turkey, when it comes to real estate you are safe. 

 

 

9- Real estate and Turkish Laws!

Turkey had provided several laws and regulations to protect real estate investors to ensure a stable investment atmosphere. 

-Foreign ownership rights: since 2012 Turkey has allowed foreigners to purchase real estate with few restrictions. To obtain Turkish citizenship, Investors must purchase real estate worth at least $400,000 USD, hold the property for a minimum of three years, and comply with all legal procedures, including an Official Valuation Survey and securing a Certificate of Conformity. The process involves various steps starting from getting a Tax Registration Number to applying for Turkish Citizenship.

 

-The title deed guarantee: The Turkish government supplies a guarantee for the title deed, making sure that the property you purchased is legally registered and protected.

 

-Property registration: All real estate transactions must be registered with the land registry and cadastre which establish legal protection for all buyers and sellers.

 

While it is logical to have concerns about government and laws when considering investment in Turkey, the country’s legal protections and motives for real estate investors provide a base for making well-read decisions. 

 

10- How to Avoid it all?

Investing in real estate is a big decision that carries inbound risks, but when approached correctly, it can lead to lifetime success. We understand the serious concerns that might crop up, therefore the equation is the following: 

For Successful Real Estate Investment in Turkey:

Expert Brokers + Market Understanding = well-informed Investment Decision.

 

At Right Home: while the market may have brokers who seek short-term gain, our approach  is different.

Our first rule is not to sell a property but to focus on providing transparent, fact-based information.

Our commitment is to share our expertise and insights without flowery speech, so you have the data you need to make your right decision.

We prioritise staying up-to-date with daily transformation of the market that can impact the investment values overtime.

We provide our clients with detailed market analyses and reports about all aspects of the market. 

You can check our blogs sections so you have an idea about the importance of data so you choose your next steps for a successful investment. 

 

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