Buying a property for investment
Recently, more and more questions are being asked to us regarding the option of real estate investment for the purpose of subsequent rental and income. I can say that this option is very relevant in Turkey.
You can rent out seasonally (this option is aimed at renting housing for vacationers, visitors and tourists), or you can rent out for a long time (this option is aimed at those who permanently live and work in Turkey).
Long term rental
With this option, housing is rented for a period of one year. To do this, a contract is signed with the tenant, a deposit is taken (2-month rent), which is not returned by the owner in case of termination of the contract and / or eviction at an earlier date.
The advantage of this type of lease is - constant monthly income, the absence of the need to furnish an apartment, etc., the disadvantage is the low rent, and the lack of the ability to live and use the apartment yourself.
Short term rental
Short-term rentals are usually seasonal. Basically, we rent apartments seasonally (in the off season we also rent, but the rent is lower).
The tourist season in Alanya is longer than in other regions, excellent weather conditions and other factors affect the fact that rental here is in demand all year round.
Renting tourists a vacation - allows the owner to use and relax in his apartment himself, and in his spare time to rent it.
Typically, apartments are rented almost the entire year and the total annual profit exceeds the profit for long-term leases.
Below we presented the calculation of rental income based on a pessimistic forecast. Apartment prices and their profitability are conditional and valid for today (May 2020).
The calculations were made at the rate of 1 euro - 7.4 Turkish lira
As can be seen from the table above, we gave an example in a 1 + 1 apartment with a value of 40,000 euros and a 2 + 1 apartment with a value of 55,000 euros.
Utility bills and cleaning upon departure are paid by the tenant himself.
When renting an apartment for a long term, the yield will be about 7-8 percent. Whereas when renting apartments for short-term rental, the yield is about 10%.
This type of investment is usually the least risky and allows you to not risk the investment itself. It is not a commercial risky business. However, given that banks today, when placed on a deposit in EURO, do not yield a return of more than 1.5%, this type of investment is quite successful.
In fact, the numbers may vary, as the correct purchase of housing greatly affects profitability.
Our agency can provide you with advice on the purchase of housing for rental purposes.
There you need a slightly different approach than buying a home for your own residence.
We can provide rental services. Therefore, we recommend trusting the specialists of our agency!
For these purposes, after purchase, an apartment lease agreement is drawn up with the landlord.
You can find out in more detail at a meeting and / or by writing / calling us. (emlak)