Do you want to invest in real estate particularly in Istanbul but don’t know where to begin? In our guide to real estate investing, we’ll talk about how to start your investment journey.
Set a Goal and Prepare a Plan
Guide to real estate investing necessitates you to set your goals at least with the main lines. How long do you want to own your property? What’s your purpose? Are you going to buy a house to live in it, or to use it as a stepping stone towards a bigger investment?
Know Your Budget
Before evaluating properties, you need to determine your financial limits clearly. Compare the payment plan for the housing loan and strike a balance.
Analyze the Area
Research which types of real estate can earn you the income you expect. Knowing what kinds of properties are on-demand and for what qualities is understanding the field you’d like to invest in.
You can contact Realista’s professional team to comprehend the current market trends in a development zone and to learn about real estate prices in line with your financial status, which will be a comprehensive guide to real estate investing.
Calculate the Rental Income
Similar to field research, understanding the rental market will give you an idea about how much can the tenants pay so that you can calculate your potential income clearly. In the end, ROI will be equal to your rental income. The efficiency of this income is calculated by comparing the difference between your general expenses and the rental income.
No matter what you’re investing in, the pay-off time is a key factor to profitability. In most guides to real estate investing, interest rates and inflation are disregarded, and the rental income is expected to pay for the property in 10 years the most. But in fact, this time period should be calculated through inflation and interest rates, as well.
Principal Payment Decision
After preparing an investment plan, the next decision to realize your real estate investment is the principal payment.
Just as with many housing loans, real estate investment, too, requires you to pay at least 20% of it. However, if you receive a long-term mortgage loan through such a principal payment, you’ll have to pay for higher interest.
It might seem alluring to pay little for principal payment and buy a house. However, in the long term when you think about the total figure to pay, you’d see that buying the property through higher principal payment is more reasonable.
One-time and Continuous Expenses
Even if the principal payment constitutes a high rate in the housing loan you’ll use, you need to consider the one-time and continuous expenses you need to bear for your real estate investment.
One-time expenses would be the title deed fee, real estate purchase tax, commission you’ll pay to the real estate agency if you’d worked with one, DASK and life insurances for the housing loan, and filing fee.
Continuous expenses would be the monthly maintenance costs, service charge if your property is in an apartment complex and annual real estate tax.
Choose Advantageous Locations
Every guide to real estate investing focuses on the importance of location. Pay attention to the development trend of the area the property is in. Opt for houses near transportation hubs.
Such houses increase in value and bring higher rental income. The common feature of houses that you can lease quickly and for higher prices is that they offer convenient transportation.
If the land is on a water basin or in the earthquake zone, this might be a problem in the future. Selling such houses is harder, and they often sell off for prices lower than your expectation.
Pick the Right Neighborhood
Many buyers prefer similar qualities. Large living rooms, new kitchens, open or closes balconies, mid-floors, gardens are among them.
However, above these qualities, if the house is in a neighborhood that shows a tendency to increase in value, then your investment would be worth more. As our guide to real estate investing highlights: location matters!
The most advantageous point about neighborhoods that are expected to be at a premium is transportation facilities like metro and tram are soon to serve in these areas.
Learn About Walkability
Public transportation offers faster and easier travel within the city.
Being able to walk out of your door and see a market, relax in a café in proximity, pick up your child from school easily, or even walk to your work gives you what you need the most in a city: more time.
Walkability always increases the value of your house. You can find tenants or buyers easily and gain a profit.
Historical Appeal Means Higher Worth
If a neighborhood has a historical value, this will keep the worth of the houses above a certain level. Visual appeal matters in historical neighborhoods. Even if there is a renovation, the architectural texture is still preserved. Above all, the fact that such neighborhoods offer an atmosphere where the old sincerity is still present attracts tenants and buyers.
Nearby Schools, Particularly Universities Add Value to Yor House
Whether it’s a primary school, high school, or university, all schools nearby have a positive impact on the value or the living quality of the houses.
Owning a house in neighborhoods with renowned schools is always advantageous. However, if it is a university campus, your house will always increase in value.
Does it Offer Healthy Living?
Areas where you can breathe in the fresh oxygen, take a walk, ride a bike, play with your children safely, and take your dog out for a walk, offer healthy living.
Houses in such areas dramatically appreciate.
In other words, buying a house in a neighborhood with parks, walking tracks, sports centers, playgrounds, and dog parks is always the right decision.
We hope our guide to real estate investing was helpful. If you need a more comprehensive guide to real estate investing, contact us today.