Real estate investment is a form of investment in residential, commercial, field, and land real estate. Also, the purpose of this type of investment is that the invested money does not lose its value and brings profit. Real estate investment is one of the popular types of investments that has little risk and a high return on profit. Real estate investment is a form of investment that guarantees a return on profit in the long term if certain criteria are observed. Settlement is one of the main needs of people. Therefore, as the population increases, the real estate sector is also valued. As for the question of how to invest in real estate, first of all, it is necessary to analyze the risk and expectations well and correctly. Hasty decisions should not be made, the real estate to be invested in should be carefully examined.
Investors should first decide which type of real estate they want to invest in. The investment can be any of the types of residential, commercial, field, and land plots. After the investor decides which type of real estate they will invest in, they should determine which region they want to invest in. If the city where the investment will be made receives a lot of immigration every year and its population is growing, this means that the real estate sector is being valued day by day, so it is an important factor. It should be examined how active construction companies are in the region where investments will be made. Because construction companies decide which region they will invest in with their expert teams and detailed research. Another important aspect is the investments and projects that the state has already made and/ or plans to make, for instance, Istanbul property. If the government has started investing in a region, the real estate market will rise extremely quickly there. Because an investment made by the government is announced as an investment that will be made in the future. These investments are made within the scope of provincial and district planning. The region could soon become a shining star. Private sector investments should also be carefully examined. If private companies began to open factories in any region, then this region is rapidly valued and developed.
1. Invest in Rental Properties
A rental property is a rental of owned but unused real estate for a fee. How long the property will be rented for is determined by the mutual supply and demand of the two parties. When renting a property, the owner specifies his terms in the agreement. The official agreement concluded between the two parties protects the owner of the property. The main advantage of renting a property is that after renting it out for a while, the property recovers its price. So we can say that the investment is returning. The most popular types of real estate for rent are residential buildings and commercials. It is a popular type of investment to restore the value of the housing purchased in Turkey by renting it.
At this point, the value of real estate is very important. If the purpose of the investment is to rent and make a profit, the real estate to be invested in should be selected according to it. Real estate investment consultants can approximately calculate the expectation of return on the selected real estate in this type of investment. In this type of investment, real estate should be in a popular and preferred location. Issues such as the age of the building, the number of rooms, the size of the space, and the services located nearby are factors that directly affect the return. Investors who will prefer this type of investment must seek advice from real estate consultants.
Realty Group provides consultancy services to investors who want to invest in Turkey with its expert staff. Realty Group conducts the necessary research on the markets and explains the most suitable options for you. Realty Group contributes to the most advantageous use of the properties you invest in with its wide portfolio. Realty Group finds suitable tenants for your real estate and offers you the most profitable offers.
2. Buy REIT
Real estate investment trusts (REITs) are institutions listed on the stock exchange and the markets. Real estate investment trusts cannot carry out construction and cannot enter into commercial businesses outside their areas. REITs invest in real estate and distribute the income they earn from it to their investors as dividends. REITs create and manage a portfolio. Their portfolio includes residential buildings, trading houses, and different types of real estate. REITs earn their earnings from rental income and buy-sell earnings. REITs research with the expert teams they have within the company, and invest in projects that they think will be the most profitable. REIT provides economic advantages to investors. Investors with less capital can invest in large projects using REITs. Investors do not only earn dividend income. In addition to dividends, stocks that have increased in price in the market also give investors the option of earning. Investors who invest in REITs are also exempt from some taxes. This is another advantage of investing in REITs.
3. Rent a Room
Renting a room is another type of income. Property owners who live alone can share their homes by renting their unused rooms to someone else. Thus, they receive income. Renting rooms is a popular option, especially for students and other people living alone in Metropol cities. Renting a room can involve a long or short process. How long it will be rented varies depending on the supply and demand of the owner and tenant.
Another option for renting a room is short-term rentals. This type is an option for people who usually come to the city for a short time from abroad or out of town. People who do not want to stay at the hotel rent rooms using websites such as Airbnb. Short-term room rentals can bring high profits to the property owner.
4. Buy a Low-Cost Home
This type of investment makes a profit by buying and selling. To make a profit by buying and selling, you first need to have a good knowledge of the market. The real value of the houses should be calculated well so that the risk in the investment is minimized. For various reasons, sometimes people sell their homes for values lower than the actual value of the house to quickly convert it into cash. If such situations are considered well, serious profits can be made. Real estate investment consultants are very important in determining this type of opportunity housing with their knowledge and experience.
Another way to invest in real estate cheaply is to buy real estate that has not yet been completed. Real estate that has not yet been completed or is under the project is sold at more affordable prices than its real value to reduce the financial burden of the construction company. After the real estate is purchased and expected to be completed, it is offered for sale again at its real value. In other words, in this way, very serious gains can be achieved in the long term. Realty Group, with its investment experts, provides this service to investors who want to sell projects in their portfolio after investing, by conducting the necessary market and buyer research.
Why should you invest in Real Estate?
Real estate investment is one of the types of investments with the least risk. In addition, if the investment is made correctly, the profit is high. Real estate investment never loses its importance because housing is the most basic need of people. Especially in countries such as Turkey, where the population and migration are constantly increasing, people’s demand for real estate is constantly increasing. When we look at the balance of supply and demand, real estate investment has an important place. Real estate investment is also a guarantee for the investor. Since real estate investment provides serious profits in the long term, if the investor encounters financial difficulties, the investment becomes almost a treasury value.
Other investment markets are negatively affected for many different reasons. On the other hand, factors that will negatively affect real estate investment are very rare. Therefore, its risk is minimal compared to other investments. In addition, investing in real estate not only brings profit when buying and selling. It provides passive income to the investor with rental income. The main thing here is to carefully select the real estate to be invested in.
What are the Benefits of the Real Estate?
The benefits of investing in the real estate sector are listed below.
- Minimum risk: Real estate investment is one of the types of investments with the lowest risk. It is the type of investment that is least affected by negative factors. The risk can be kept to a minimum if opinions are obtained from consultants who are experts in their field.
- High profit: A well-analyzed real estate investment can bring a high profit to the investor. If certain factors and expectations are well calculated, the investor gets more than their money’s worth.
- Passive income: If the owned real estate is rented for its value, it creates serious amounts of passive income for the investor every month. And after renting for a long time, the money earned can even bring the house back in value.
- Maintains its value: Since housing is the main need of people, the real estate sector and housing demand never lose importance.
What are the Risks of Investing in Real Estate?
Real estate investments made without knowledge cause the investor to lose serious money. Investment in real estate made unprotected against natural disasters results in the loss of the investor’s real estate is a major event. Investing in real estate with missing official documents or the wrong title deed can have devastating consequences for the investor. The official documents must be complete and accurate. Otherwise, from a legal point of view, the investor will face great difficulties. Houses purchased above their value also cause losses to the investor when they want to be sold again. Therefore, it is important to get an expert opinion. The value of the house must be determined correctly. Another factor is that the house is rented out. The agreement with the tenant is important when renting the house. Compensation for any damage to the house must be determined in the agreement. The house should be rented to responsible people. And the rent should be determined at the right rate with the value of the house.
Gayrimenkul Yatırımı Kârlı mı?
Birinin yapabileceği en güvenli ve en karlı yatırımlardan biridir ancak karlı olması biraz zaman alır. Uzun vadeli bir yatırım olarak kabul edilebilirler ancak çok güvenlidirler ve gayrimenkul yatırımında yanlış olamazlar. Birikimlerinizi tahvil, hisse senedi gibi maddi olmayan varlıklarla değerlendirdiğinizde veya bir bankada mevduat hesabı oluşturduğunuzda ekonomik risklerle karşılaşabilirsiniz. Borsaların çöküşü, bankaların iflası gibi durumlar bu riskleri yaratır. Öte yandan, gayrimenkule yatırım yapmak maddi varlıklara sahip olmanın anahtarı olacaktır.
Ekonomik enstrümanlar sıklıkla zaman içinde değer dalgalanmaları yaşar. Ancak taşınmaz bir mülke sahip olmak, işler ters giderse satacak bir şeyiniz olduğu anlamına gelir. Ancak gayrimenkul satışında konumunun zaman içinde değerlemesi, iç bakımı, çevresel faktörler gibi etkenler gayrimenkulünüzün değerini artırarak kazanç elde etmenizi sağlar. Örneğin Adana satış fiyatları diğer illere ve lokasyonlara göre değişiklik göstermektedir.
Sürekli artan ihtiyaçlarınız ve giderek pahalılaşan yaşam koşullarınız bazen bütçenizi aşabiliyor. Aylık düzenlemeleriniz ve planlamanız dışında karşılaşabileceğiniz harcamalar olabilir. Okul masrafları, ev için ekstra masraflar, ani bir seyahat kararı gibi durumlar karşılaşabileceğiniz şeylerdir. Bu gibi durumlarda ihtiyacınızdan fazla gelire sahip olmak sizi oldukça rahatlatacaktır.
Gayrimenkul yatırımının karlı olup olmadığını düşünüyorsanız gayrimenkulün uzun vadede en değerli yatırımlardan biri olduğunu belirtmekte fayda var. Bir daire, ofis veya villa satın aldığınızda, burada oturmasanız veya ofis olarak kullanmasanız bile bu mülkü kiralayabilirsiniz. Özellikle yatırım yapacağınız mülkün çevresel ve fiziksel olanaklarını göz önünde bulundurarak kiralamak istediğinizde çok daha yüksek değerler değerlendirmenize olanak sağlar. Yazlık ev arıyorsanız veya ılıman iklimi seviyorsanız Antalya satılık ev ilanlarını değerlendirebilirsiniz. Ayrıca bütçenize uygun bir ev satın alırsanız, farklı bir şehirde yaşıyor olsanız bile her ay düzenli kira geliri elde edebilirsiniz.
Artan nüfusla birlikte şehir merkezleri genişler ve birden fazla şehir merkezi ortaya çıkar. Bu anlamda şehirlerin sevilmeyen semtleri bile giderek gelişip canlılık kazanmaktadır. Bu nedenle gelişmemiş veya daha az tercih edilen bölgelerden arazi satın almak oldukça karlı bir yatırımdır.
Mevsimsel talebe göre daha az tercih edilen yerlerde arsa satışları nispeten daha ucuz olacaktır. Profesyonel gayrimenkul yatırımı konusunda yapacağınız araştırma sonucunda gördüğünüz bölgeden arsa satın almak bütçenize katkı sağlayacaktır. Bölgenin gelişmesiyle birlikte arazinizin değeri artacak ve arazinize olan talep artacaktır. Böyle bir durumda araziniz üzerine yapı inşa edebilir veya arazinizi farklı değerlendirebilirsiniz. Öte yandan arazinizi satın aldığınız fiyatın çok üzerinde satarak kazanç elde etme şansı da bulabilirsiniz.
Is Real Estate Investment Profitable?
It is one of the safest and most profitable investments one can do but they take a while to be profitable. They can be considered a long-time investment but they are very safe and one cannot go wrong with investing in real estate. You may encounter economic risks when you invest your savings with intangible assets such as bonds or stocks, or when you create a deposit account in a bank. Situations such as the collapse of stock markets and the bankruptcy of banks create these risks. On the other hand, investing in real estate will be the key to owning tangible assets.
Economic instruments frequently experience value fluctuations over time. But having an immovable property means you have something to sell if things go wrong. However, in real estate sales, factors such as the valuation of its location over time, its interior maintenance, and environmental factors increase the value of your real estate and enable you to earn profit. For example, Adana’s sale prices vary according to other provinces and locations.
Your ever-increasing needs and increasingly expensive living conditions can sometimes exceed your budget. There may be expenses that you may encounter apart from your monthly arrangements and planning. Situations such as school expenses, extra expenses for home, and a sudden travel decision are things you may encounter. In such cases, having more income than your needs will greatly relieve you.
If you are thinking about whether real estate investment is profitable, it should be noted that real estate is one of the most valuable investments in the long run. When you buy an apartment, office, or villa, you can rent this property even if you do not live here or use it as an office. Especially considering the environmental and physical possibilities of the property you will invest in, allow you to evaluate much higher values when you want to rent. If you are looking for a summer house or if you like the mild climate, you can evaluate the ads for houses for sale in Antalya. In addition, if you buy a house that fits your budget, you can get regular rental income every month, even if you live in a different city.
With the increasing population, city centers expand and more than one city center emerges. In this sense, even the unpopular districts of the cities gradually develop and become lively. For this reason, buying land from undeveloped or less preferred regions is a very profitable investment.
According to the seasonal demand, land sales in less preferred places will be relatively cheaper. As a result of your research on professional real estate investment, purchasing land from the region you see will contribute to your budget. With the development of the region, the value of your land will increase and the demand for your land will increase. In such a case, you can build a structure on your land or evaluate your land differently. On the other hand, you can find a chance to earn a profit by selling your land much higher than the price you purchased.
What should be considered when Investing in Real Estate?
The criteria to be considered when investing in the real estate sector are listed below.
- Location: The region to be invested in should be chosen carefully. Investments should be made in regions that are constantly developing or have just begun to develop. It is advantageous to prefer regions with an increasing population. In regions that have lost popularity, the demands decrease, and the investor loses money.
- The actual value of the real estate: The real value of the real estate should be well calculated. The opinion of investment advisors is important.
- Building age: If possible, investments should be made in newly constructed buildings. Too old buildings can lose their value. People’s “standard of living” changes. It is important to invest in projects that adapt to this change.
- Title deeds and official documents: It is necessary to pay attention to certain criteria in this type of investment. The most important of the basic and technical criteria are the zoning and housing permits issued specifically for each structure. A residence permit is a permit issued by the municipality in which the structure is located to structures that have been completed. Structures must have this permission. The second criterion is the title deed. The explanations written in the title deed should be carefully examined. It should also be examined whether there is a mortgage on the title deed. The durability of the structure against natural disasters such as earthquakes is another important criterion. Tests conducted in this area should be examined.
- Real estate investment consultants: Real estate investment consultants are expert people who dominate the real estate market. When investing, it is important to consult with experts and brokerage firms to get value for money. Especially if the buyer has little information about the region where they will invest, they should get an expert opinion. Otherwise, they may lose their capital to the profiteer.
How much do you Need to Invest in Real Estate?
The question of how much money is needed to make a real estate investment varies a lot. Factors such as the city and region to be built, the real estate to be invested, the demand, the properties of the real estate, and the services around the real estate affect the question of how much money is needed. There are serious differences between real estate investment to be made in metropolitan cities and investment to be made in smaller cities. Land plots in which there are no structures are cheaper than residential and commercial buildings. Each real estate project contains different content. These differences between projects also affect prices. The number of rooms and size factors also affect the investment price.
What are the Best Countries to Invest in Real Estate?
The best countries for real estate investment are listed and described.
- Turkey: Turkey is one of the most developed countries in the real estate sector. Construction companies are leading and specialized companies in their field. Even in different countries, Turkish companies invest in real estate. Since the population is constantly growing in the country, the real estate sector is gaining more and more value every year. The structures are durable. Turkey, where foreign investors allocate large amounts of budget every year, is one of the most suitable countries for real estate investment. In addition, residents prefer to rent a house. That is why there is a lot of demand for houses and commercials. Turkey grants permanent residence permits and citizenship rights to foreign citizens who make real estate investments worth $400,000. That is why people who want to settle in the country and want to get citizenship for trading in the country prefer it.
- Australia: Australia has a developing economy every year. One of the sectors that are developing rapidly every year is the construction sector. The country is increasing its population by receiving immigrants every year. And the demand for housing from the growing population is growing rapidly. To meet this demand, large investments are being made in the sector. In addition, foreign investors allocate large budgets for Australia every year. The Australian state also supports local and foreign investors. This is also the reason for the preference for investors.
- Portugal: The real estate sector in Portugal has begun to develop in recent years. In the country, investment in the construction and housing sector is growing rapidly every year. Real estate prices are also rising, especially in the capital Lisbon. Investing in real estate in the region has been quite popular in recent years.
- Panama: Panama is quite interesting for foreign investors in the field of property and land investments. The real estate sector in the country is well developed. Real estate has high quality and high income. The country, where the economy is dynamic, hosts hundreds of businessmen and investors every year. It is known that they have a high rental income.
- Thailand: Thailand annually hosts millions of foreign tourists. Depending on tourism, the real estate sector is also developing at a very fast pace. Foreign investors invest a huge amount in real estate every year. Most investments are made in apartment-type houses in the country. The main reason for this is that these apartments are rented to millions of tourists who come to the country, and very large revenues are generated.
- Singapore: Singapore is a city-state. Although its area is small, in Singapore, the real estate sector is developed. Singapore is the capital of southeast Asia. Markets and the economy are very dynamic. Foreign investors make large investments by opening their representative offices here. Therefore, the demand for the real estate sector is very high.
How to Invest in Real Estate in Turkey?
It is easier to invest in real estate in Turkey than to invest in other countries. The state provides convenience to investors in this area. Foreign investors can buy real estate without the need for citizenship and residence permit. There are many specialized real estate consulting institutions that dominate the real estate market in Turkey. Investors who want to invest in Turkey but do not know about the market should contact these institutions and get ideas for investment. When investing, it should be decided which region to invest in first. Cities such as Istanbul, Izmir, Antalya, Sakarya, and Mersin are the cities where real estate investment is most dynamic. The documents required to carry out the sale of real estate to foreign citizens are listed below:
- Real estate land title
- Identity document / passport
- Real estate registration certificate received from the municipal authority
- Compulsory Earthquake Insurance (DASK) policy
- Real estate valuation report
- A real estate appraisal report
- Bank account
- Documents from your country of residence
* If the buyer and seller do not speak Turkish, the process must be carried out with a sworn translator.
What are the Advantages of Investing in Real Estate in Turkey?
The advantages of investing in real estate in Turkey are listed below.
- Expert construction companies in their field: Turkish construction companies are companies that have proven their quality and trust to the whole world.
- Quality and durable buildings: The Republic of Turkey increases the quality by introducing many legal requirements for structures.
- The real estate sector is gaining value every year: With the increasing population, the demand is increasing every year and the sector is being valued.
- Renting a house: Renting a house in Turkey is popular. That is why there will be a lot of demand for real estate.
- Turkish citizenship: Investing in real estate worth $400,000 gives the right to the investor Turkish citizenship.
Real Estate vs Stocks: Which is Better Investment?
A stock is a means of investing in a company. Companies make public offerings of their shares, and citizens purchase these shares through intermediary institutions. A stock is a type of investment that is risky and lucrative. First of all, certain research should be made for this investment, otherwise, the investor may lose all their money. It should be well thought out which company and sector to invest in.
When we look at the differences between stock and real estate investment, the most important difference is the risk taken. While stock is a risky investment, the real estate sector is a sector with minimal risk. While less capital is required to invest in stocks, more money is required for the real estate sector. Both types of investments, if made consciously, can save the investor very serious money. Both investments are usually long-term investments. Passive income on shares is provided by dividends distributed by companies. In the real estate sector, passive income is rental income.
Which form of investment is best for a person depends on their situation. If the investor has little capital, it is more correct for them to invest in stocks. Factors such as how much risk the investor can afford to affect the question of which type of investment is more suitable.
How to Invest in Real Estate Stocks?
Real estate stocks are the shares that REITs offer to the public. Companies buy and sell real estate with the investments they receive and rent real estate. The profit received from it is distributed to the investor as a dividend. Investors who do not know about the real estate market can invest in these companies. As REITs are composed of expert real estate consultants, they give confidence to the investor. People who have little capital, but want to invest in the real estate sector, can consider this option.
How to Invest in Real Estate with no Money?
There is a method that is popular in Turkey. Newly purchased houses are paid in installments and rented out. As the tenant pays the rent, the owner pays the installment of the house. If the house is rented out in the long term, the house gets its own money out. Thus, real estate can be owned with minimal capital.
How to Succeed in Real Estate Investing?
To be successful in the real estate sector, you must first have a good knowledge of the market. The investor should not make a hasty decision. The investor must first determine which real estate they want to invest in. In the next step, it is necessary to consider which region will be more advantageous. Preference should be given to regions whose population and demand for real estate are increasing every year and where the real estate sector is valued. State investments should be monitored, and investments should be made in these regions. In addition to them, all official documents must be true and complete when buying real estate. The investor should examine these documents well. For a successful investment, the opinions of real estate investment consultants should be taken. If possible, opportunity houses that are sold cheaper than their value should be identified and these houses should be purchased. If these opportunities are evaluated well, very serious gains can be made in the long term.