Property in your investment portfolio has always been considered a low risk, potentially high return and continues to be so but always do your homework and weigh up pros and cons before you make your decision to buy Turkish real estate, either for personal use of buy-to-let.
Investment can be direct or by pooled investment through a variety of routes. This eases your outlay but obviously lowers the return, plus a fund manager is normally needed, who will charge a fee. Some of the routes you can explore for pooled property investments are:-
- Property Unit Trusts
- Shares in Listed Property companies
- Real Estate Investment Trusts (REITS)
The Plus Factor
- Rent from your Turkish real estate can be a regular source of income. Either long tem rental or the popular holiday rental in the Turkish coastal areas, a healthy return on your investment.
- As a family investment. Turkey has a low inheritance tax so buying Turkish real estate can be a long term plan for family inheritance without the higher taxes that other countries apply.
- The property market fluctuates but research shows that as long as you are prepared to wait there will be an increased return for your investment.
The Risks to Consider when Investing in Real Estate
- You cannot get your money out quickly – realistically it takes time to sell.
- Putting a lot of money into one particular area is a huge commitment, and property is never cheap even if it is a good deal.
- Additional costs; properties need maintaining and upkeep. This has to assessed and included in your budget for the long term.
- If you buy via a mortgage this carries additional risks. Will the rent be enough to cover the mortgage repayments? Do your homework! If you cannot keep up your payments the bank or mortgage lender will foreclose and take the property. Also bear in mind the type of mortgage you take might rise.
Doing your homework, working out a realistic budget and being ready for long time gain not quick turnaround go a long way in ameliorating the risks. Turkish real estate has proven to be a good investment over the past few years but property markets do fluctuate be prepared for this.