Real Estate vs Real Property: What’s the Difference?

Many people in the real estate industry use the terms real estate agent and real estate consultant in the same sense. However, these two terms are different from each other and it is not possible to use them interchangeably. Real estate; are assets that are firmly attached to the soil, whose foundation is soil and cannot be moved. Houses, shops, and shopping centers are all real estate. Real property, on the other hand, is both a tangible and intangible concept that includes real estate. It covers what is on and below the land, and also includes the rights on those assets. For example; a house built on a piece of land is real estate. That is, it is a concrete concept. However, different people may have different rights in this house. Like the right of healing, such as the right of usufruct. These rights are intangible and are considered real estate according to the Turkish Civil Code because these rights are recorded in the annotation section of the land registry. Some rights can even be inherited or transferred. For this reason, real property is a more comprehensive concept that includes real estate. From these perspectives, we can say that the concepts of ‘real estate agent’ and ‘real estate consultant’ have different meanings.

The difference between a Real Property Consultant and a Real Estate Agent is that one acts as an intermediary between the owner and the customer in transactions such as the purchase, sale, or rental of any real estate such as residence, office, shop, land, while the other provides almost all kinds of consultancy services related to such real properties offers.

1. Legal Rights

Real estate and real property law, which can be described as a sub-branch of property law, deal with the relations between owners, tenants, and building finance institutions. It covers subjects such as expropriation, removal, confiscation, title deed cancellation arising from inheritance law, title deed cancellation and registration, immovable purchase and sale, rent, urban transformation, establishment, and protection of real rights regarding immovables. The lively and dynamic nature of the construction and building sector in our country, and the fact that people make their investments in the form of acquiring real estate have led to the rapid development of this field.

2. Land

Land tax is the type of tax that must be paid for all plots and lands within the borders of Turkey. Land parceled out by the municipality within the boundaries of the municipality is considered land.

3. Physical Improvements

Property owners, real or legal persons who want their real estate to be demolished and rebuilt within the framework of Urban Transformation are taxpayers.

What is the Difference between Real Property Tax and Real Estate?

The state provides many public services for society. To meet these services financially, everyone is obliged to pay taxes according to the principles set in the constitution. These taxes, which everyone pays according to their income power, are evaluated according to their types, not a single item. Taxes are levied on citizens by governments to generate income to undertake projects to stimulate the country’s economy and raise the standard of living of its citizens. With the payment of tax; Goals such as the development of the country and the improvement of the welfare level of social life are made.

According to the Real Estate Tax Law No. 1319, real estate tax; is a type of tax given for building and land properties located within the borders of Turkey. Property tax, which is divided into two building tax and land tax, is paid by property owners. If there is no property owner, the people to whom the land or building is allocated are liable to pay the tax.

Is Real Estate or Real Property More Advantageous?

Real estate investments, which are described as the least risky or risk-free, are not only for residences; they can be built on many immovables such as land, field, vineyard garden, building, or inns. Although there are many alternative investment options such as gold, foreign currency, and financial platforms, real estate investments are generally preferred as guaranteed investments. Residences and workplaces with regular rental income and commercial structures are the tools that win where they stand. While it provides a profit at the trading rate depending on time, it also ensures that the money flow is continuous with the rental income over time. Fields can also be an ideal investment tool for real estate investments. Especially for farmers and those who are interested in agriculture, it offers both an investment and a field feature that they can operate, and also provides an opportunity to earn money.

In terms of where to invest in real estate, 50-60 percent more profit can be achieved in the houses bought from the land. Prices for the houses purchased in the project are much more affordable. For example, when you buy half the price of the house and the payment plan is chosen at the time of delivery of the other half, the profit is more than doubled. For unfinished projects, for example, the house bought for 100 thousand TL is sold for 200 thousand TL after the construction is completed. After the first sale, that is, after you get your title deed, you can sell up to 250 thousand TL and make a profit of more than 60 percent.

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