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Real estate investment payback in Alanya

12/23/2020

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Содержание

Long term rental

Property management

Where to buy a property in Turkey to increase income?

One of the strategies of saving money in most countries is to invest in housing. In Turkey, you will find affordable prices and a good return with the right investment approach.

Every year more and more people buy properties in Turkey, especially in Antalya, Alanya, Istanbul, etc.

Why Turkey? One of the advantages is the visa-free policy with many countries. Not only the owner of a home but his family, relatives, acquaintances can visit at any time.

The second positive factor is the economy. The government introduces new programs to improve the living standards of the population. Favorable climate, inexpensive food, textiles, utilities are the advantages of living here.

Turkish real estate is appealing to investors. The prices are much lower than in other European countries (if we talk about access to the sea).
Besides, you can receive income from investing in real estate from the developer. Developers launch new offers to attract investors, including investment at the first stage of construction.

Buying a property during its construction makes it possible to save up to 30per cent, compared to purchasing a finished home.

By renting out, the owner can receive a stable income and have vacations several times a year. To make rental profitable, take a closer look at the following nuances.

The benefits of renting out in Turkey

Regardless of exchange rate fluctuations, the rental price of real estate abroad continues to grow. What are the benefits of renting out a home?

Profit. If you choose to rent out your property when you're not using it, you will benefit from another source of income. In Turkey, there are several types of rent. We are going to get into more detail in the next part of our article.

Payback. The calculation of the payback is based on the characteristics of the property. It depends on the location, distance to the beach, infrastructure, the readiness of the property.

Vacations in Turkey. Depending on the type of lease, you can visit the property with the family several times of the year. The main nuance is to decide in advance on the vacation time.

How to make a living with rental property in Turkey?

Where to buy an apartment to have a passive income? Many foreign citizens ask this question when looking for suitable housing.

Turkey is one of the most favorable resort countries for this kind of real estate investment. However, there are several nuances regarding the rental of Turkish housing that every owner should know.

There are three most common types of rental properties in Alanya and Turkey: short-term, long-term, guaranteed.

Short term rental in Alanya

In 2017, the Turkish government made significant changes to rental legislation. Thus, individuals can not legally rent out any properties for short stays. Only legal entities with a license can use the right of a short-term lease while fulfilling several conditions:

The owner has to manage the building or part of it. The total number of sleeping places (beds) has to be at least 30, which means owning a hotel.
A hotel provides round-the-clock security, video surveillance, a fire escape, etc.
The legal entity undertakes to check tenants in a registration system. Every day, data about each of the guests, including children, are sent to the police station.

If an individual does not provide the conditions mentioned above, the authorities impose fines (for the first offense) or deportation.

The reason for this regulation is the desire to maintain security.
However, foreigners who wish to receive income from real estate in Turkey have two more options.

Long term rental

If you are the owner of one or more residential properties in Turkey, you can sign a long-term lease agreement. Long term, in this case, means it cannot be shorter than six months. You should also notarize the contract. The next step is to register the tenant at the Civil Status Office (or Nüfus Müdürlüğü ) of the Ministry of Internal Affairs. The registration does not require paying a fee. It takes 10-20 minutes. If the tenant is not from Turkey, he or she will need to provide the TIN of a foreign citizen.

The calculation of the return on investment in real estate in Turkey depends on the location, infrastructure, quality of the interior, furniture, appliances, other characteristics. The profit can reach 5-12% per year.

The disadvantage of this strategy in Alanya is the limitation of your holiday time. It is not easy to find a tenant with the required lease terms.

Property management

Property management in Alanya is one of the best options to gain profit from your property abroad. In this case, you invest in real estate. Then, the management company discusses the details on how the property will proceed with being managed. It includes maintenance, paying for utilities, preparing the place for guests, findings tenants, etc. Often, these are real estate agencies and construction companies.

The professional team will help you find the best property with suitable characteristics.
If you are interested in this option, you will have to sign a Property Management agreement with the agency. It will fix a certain amount of income annually.

Typically, the return ranges from 5 to 8% per year.

One more bonus is to have your holiday home available. You have to discuss it with the company in advance.

Property management has several advantages:

fixed income, you decide on the amount in the agreement;
no need to look for tenants on your own and renovate the apartment yourself or solve any problems;
a chance to have holidays in Turkey in your own home.

The drawback is a narrow list of residential complexes where this type of lease is possible. Before signing your property management agreement with a company or a developer, make sure it has a necessary license. Check the competence of employees and the prospects for further development.

Where to buy a property in Turkey to increase income?

Every region has advantages for different types of business. As for investment in the real estate market, it is worth paying attention to touristically popular places. Of course, these are the resort towns along the coast of the Mediterranean and Aegean Seas. First of all, check the real estate market in Antalya, Alanya and its districts Avsallar, Mahmutlar, Oba, Cikcilli, Tosmur. Selling and renting real estate become more popular among foreigners from Europe. New infrastructure is developing. There are cultural, historical and natural attractions. Altogether they guarantee income for almost every landlord.