Investing in property near the sea - is it worth the risk?
Are there any negative investment cases in investing in resort real estate in Turkey?
Not the most successful, but not negative, case can be considered when an investor, after the completion of construction, sold his object for only 15%, and not 50% in € more than he bought.
In Turkey there are no negative cases, when deceived investors have been watching the foundation pit for decades. There may be delays in the delivery of the construction for some reason. The developer always has a certain margin of time, delays rarely exceed it. If the developer has problems, his object is transferred to another company for completion, and investors are protected by Turkish laws, both foreigners and citizens.
In Alanya, it does not happen that an investor suffers losses and does not make a profit, it is always a growing market, especially in resort locations.
How not to do. Investor case
Let's talk about the regrets that a client from Kyiv shared with us. She made an investor mistake a few years ago. The reasons were the fear of new buying property outside of their home country and the opinion of family friends about transactions with foreign real estate.
“In 2019, I bought an apartment from the Kievmiskbud developer in Kyiv, the last version of a one-room apartment for $22,000, I was very lucky to find it. For a long time I did repairs, as for myself, although I did not originally plan to live. Bought expensive furniture and appliances. The apartment turned out great, the realtors were delighted when they showed it to potential tenants.
The same amount was invested in the repair and furnishings as the apartment cost at that time. I remember that the prices for the remaining apartments from the developer rose sharply after my purchase, the dollar grew, the situation on the market gradually changed. The complex was filled with tenants and residents, my apartment became more expensive.
At the time when the tenants appeared, I was already thinking about Turkey. Then I definitely could sell my apartment and buy a ready-made, renovated, but already in Avsallar. I visited the vacation and was impressed by nature, beaches, atmosphere. I thought about selling my apartment in Kyiv and buying an apartment in Turkey. There was just an option for €45.000 in a special complex, right in the forest. In theory, I would have covered all my expenses for the purchase, the deal, tickets, furniture and equipment, if I had then taken the risk and sold the apartment in Kyiv.
But fear prevented investing in a foreign country, although I really wanted to. What I end up with:
The apartment that I didn't buy cost €45.000 then, now it costs about €90.000. My apartment in Kyiv can be sold now for a maximum of €65.000.
Now the main pain! I give my apartment for rent in Kyiv with the income €300 monthly. An apartment in Avsallar that I did not buy, or at least in the same complex and in the same direction, I found on Airbnb for €1500 per month. These are the prices there in the high season. And now I could have a rest there with my children for a couple of weeks, and the rest of the time it is profitable to have rental income through an agency, not having a headache at all with tenants, settlements, communal apartments. Yes, there would be a percentage for rent management, but in any case, I would have had 2-3 times more income.
Now I'm looking at complexes in the Oba region. The prices are not very encouraging, given that I could have an apartment, and now I most likely cannot afford it. And I won’t even cover a significant part of the installment plan with my rent in Kyiv if I make a down payment of 30%.
I recommend everyone who is afraid of the foreign market to think 10 times, calculate everything, analyze the possible profitability and take this step/ And never not listen to the advice of people who do not know anything about the Turkish market at all. There will always be a demand for rent. And it’s always a possible second home to move into, a fallback for personal peace of mind.”
What is the situation in the Turkish real estate market in 2023?
Indeed, the prices for renting apartments in the complex that this woman was considering are now high. In winter, such an apartment can also be rented out, as the complex has a good location surrounded by nature. The cost of renting in winter can be at least €500. By early April, the price rises to €700. And the whole season the apartment would bring from €1000 to €1500 monthly.
Turkey's real estate market is still one of the most active in the world. Prices continue to rise. Buying an apartment at the start of sales, you can earn 30% only on the increase in value after the house is put ready.
Rent brings 8-10% per annum. The minimum cost of a 1+1 apartment in the province of Antalya as of July 2023 is from €90,000 in promising areas, from €110,000 in developed areas within 1.5 - 3 km from the sea, and €130,000 - €150,000 in successful locations close to from the beaches. The cost of apartments in residences with a large area and premium infrastructure starts from €180,000 and can reach €300,000.
Many people are prevented from deciding to buy by the fear of the unknown foreign real estate market, the need to study its features and nuances for a long time. But there is always an opportunity to spend 3-4 days and see everything live, get the necessary information to make a decision without fear of the unknown. Such an opportunity is Infotour from Stay Property. In case of real estate purchase, this service is free for the client.
How to choose a project for investing in real estate and not make a mistake?
The basic investment rules do not differ from other countries:
Choose a developer with successful projects, history, reputation.
Look for the most liquid real estate and a good location.
Invest in projects with unique features and benefits that will always be appreciated.
Choose options with good visual characteristics.
Assess rental potential, conduct market analysis and compare options.
Contact trusted real estate companies with extensive experience and databases of objects, high-level service.
Study all the nuances of withdrawing from the project, assignment, resale.
These simple rules will allow you to invest without risks and with maximum profit.
How to save time and money by investing in real estate in Turkey?
According to Stay Property statistics, 80% of investment transactions in new construction projects are now taking place remotely. The client does not fly to Turkey, everything is processed remotely. It is even possible to resell your property remotely, obtain title deeds through our trustee and rent out the apartment.
Investing in 2023 is as convenient as possible. Real estate in Turkey always brings high income and continues to grow in value.
A client who contacted the Stay Property office in Kyiv for advice on current real estate prices in Alanya told us her story. We resumed its work in the summer of 2023.
Clients who want to buy property in Turkey can contact the Stay Property offices in the Russian Federation, Kazakhstan, Russian Federation, Northern Cyprus and Dubai for consultations, transaction processing and payment by installments. We will also be happy to organize an Infotour for you, which can be successfully combined with a vacation. Online viewings and remote transactions are also possible.
Save our contact details or contact the manager to ask questions about investment property in the resorts of Turkey and Istanbul.
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