The bullish growth of real estate Istanbul market due a varied factor is a reason to cheer for local as well as foreign investors. But the same demand has also led to some myths. In the scope of this article you would know how to bust these bubbles and do reality checks before you park your money. A real estate investment is always about maximum profits on completion of investment period.
Guaranteed rental income – A myth or a profitable real estate Istanbul strategy?
If you have been looking for profitable real estate investment Istanbul in current scenario, you must have noticed that the market is largely competitive. Rapid expansion of the city and infrastructural development has opened up new arenas for real estate purchase Istanbul. You must have also noticed that often real estate companies in Turkey offer properties with guaranteed rental income tag. As foreign investor this should sound exciting for an investment in Turkey. But is guaranteed rental income as lucrative an offer as it sounds? Let’s have a reality check.
The first thing to note for such real estate properties which come with guaranteed rental income is the base price. If you do a thorough market research you would be aware of the real market price for real estate Istanbul centre. Real estate assets in newly developing areas are priced less. There are minor price rang difference among different properties from each class depending or any class of properties in Istanbul. The prices are traditionally higher for n the age of the property and heritage value if it’s a classical Turkish property. Employ your knowledge of facts to judge for the following facts.
- Compare the buying price of the property with the prevalent market price.
- If the property is offered along with guaranteed rental income, chances are there that the buying price is slightly inflated.
As you check for these two factors you get the real picture for any property and can thus make an informed real estate Istanbul purchasing decision.
Why you should go for guaranteed rental income properties while making real estate purchase Istanbul?
Though the above mentioned scenario of inflate prices for guaranteed property is sometimes practiced, yet they are the most profitable kind of real estate Istanbul investment. This is because they provide for stable income during the period of asset ownership. This is the rental income generated by the property as long you hold up the property. This adds up to the profit you male once you sell the property on completion of the investment period. But the numbers end up to a substantial profit only if you start with a proper exit strategy as you begin the investment.
Why buy below market price for profitable real estate Istanbul?
When you opt for a guaranteed rental income property, take note of the buying price carefully. If you succeed in buying a property in a price below market price you guarantee a substantial profit margin at the beginning of the investment. Then as you move on to get a steady rental income you further enhance your income for the investment.
Exit strategy for profitable real estate Istanbul.
Your exit strategy is your real profit from a real estate Istanbul investment. You have to have the target buyers which in case of Turkey are the local buyers while making the investment. If your real estate investment suits the needs of the local buyers who dominate 95% of the market, you have a secure exit plan and not just paper profits. A good investment is thus statistical study of various factors.
