If you are rightfully skeptical, then never mind the boastful, unsupported reasons you may have read about.
As an investor, your judgement relies upon more than hot air. You will know that buying, holding, and ‘hoping’ that prices go up, is a fool’s errand. That type of price increase, is only reflecting inflation. A professional investor makes money above and beyond the inflation rate, by following the old investment adage, ‘make half your profit on the way ‘in’ when you buy, and half on the way ‘out’ when you sell’. So consider the facts about how exactly this opportunity presents itself to buy property in Turkey, now:
- Economic Growth: Turkey’s rapid population growth rates ensure future demand for property, and higher prices. The rapid growth will result in Turkey becoming the world’s fifth largest economy by 2030, according to research from Standard Charter Bank, (courtesy of Visual Capitalist). This supports upward price trends when the time comes to sell.
- Housing Renewal Demand: Annual new home demand is running at 400,000 units per year for the next 20 years, as new earthquake resistant construction, mandated by law, replaces old housing stock. This supports upward price trends when the time comes to sell.
- Depressed Valuations: The present Turkish Lira Currency Crisis, with a spike in interest rates to 20%+, has currently depressed resale prices 15-30% below the long term trend-line average. This is your opportunity to make half your profit on the way in.
- Lifecyle Accelleration: Rapid population growth means amplified effect in all lifestyle segments every three to four years, due to larger, young and growing families. This supports upward price trends when the time comes to sell, and is why Turks are now the largest buyers in coastal regions of Turkey.
a) Segments: The demand for rental property in Turkey is supported by the same population growth and demographic life-cycle factors mentioned above, especially as long as mortgage interest rates remain in high double figures, as is the case presently: but unlikely to continue for long. The keys to investing are knowing which demographic segments and which locations will provide the highest returns, and professional investment guidance for sourcing with a location assessment, and finding the optimal type of rental properties, is a must.
b) Yields: Standard residential rental income yields in Turkey are not especially better than anywhere else, but are increasing from the 3%-5% range, towards 7%. This alone is not a compelling reason to invest. Indeed, if you buy a property from an agent, the rental income assessment is not to be relied upon- agents only sell what they have been given to sell, not what an investor wants to find to buy, and needs to buy.
c) Off-Market Secrets: Fortunately for investors, there are little known segments of the rental market that are generating exceptional residential property rental income yields above 12% in hard currency: income in Euro, not Turkish Lira. That’s double the rate of the normal long term trend line yield in all international markets.
Execution is more than just ‘Knowing’: it’s about ‘Doing’.
Considering the above facts, a buyer of property in Turkey is looking at a viable and attractive investment proposition. Knowing the facts is just the start: the knowledge alone will not make the investment happen. An investor still must put a plan into action. In other words, and investor must ‘execute’ a plan. And for that, there are ample professional investment services available in Turkey, once one realizes that buying through an agent is a sure way to pay too much, for something in the wrong place, and not part of a viable investment plan. There are safer, smarter, and better ways to buy property in Turkey. And for non-Turkish speaking investors, the best of these service provider is mytapu.com.
A reader of this article most likely already understands the advantages of living in Turkey, and why more than 70,000 Northern Europeans have chosen to buy into the Turkish lifestyle, with property ownership, in just the last ten years. If you do not know, please accept our invitation at mytapu.com to come, and find out for yourself, by completing the form here.
Read more insights into the attractions of the Eastern Mediterranean, and Turkish life-style here: