Having determined the property type you will invest in, you should make detailed real estate research on it. You should consider which city and district are the best, and evaluate the property’s proximity to the city center.
If you have decided to invest in a residential house, you can choose gentrification zones of nearby developing areas for a larger profit. In this way, you can own a new house that you can sell at a higher price rather than an old property.
What to know when investing in real estate is the qualities the property has. Important factors are causing the property owners to move out, including whether there are conveniences such as a parking lot or an elevator. You can opt for apartments on middle floors with natural sunlight, spacious balconies, and closed kitchens.
When you do detailed real estate research with a professional team, you can learn the Turkey Real Estate Market properly and choose property in line with your needs.
What to know when investing in real estate requires you to learn about the demographic information, employment potential, schools, crime rate, and air purity of the area you chose.
Following your research, narrow down the options in accordance with the lowest crime and unemployment rate. In this way, you can create a proper list of the properties in the area of your choice.
Even if you are planning to invest in residential, do not hesitate to change your mind if you come across a workplace or vacant land with great potential. However, remember that you should do your research by the real estate type.
For instance, when evaluating vacant land and house, what to know when investing in real estate will be different. You might be indecisive at this stage, but researching areas can make it easier for you to decide.
Many of us do our preliminary research by visiting the advert pages. However, the information or photos on these adverts may not always reflect the truth. To ensure that it matches the advert, you must visit the property. Make a tour appointment when you are available. What to know when investing in real estate includes its condition in real-time.
Make sure you know whether there are garbage collecting, water, internet, cable television, and sewage services in the area. Particularly in recent years, buyers opt for houses with internet and cable television amenities.
Even in big cities, there are times when internet services are not provided due to a lack of ports. This reason alone turns buyers aside from buying or renting great houses. Internet services are highly important for workplaces as well, and whether it is available or not is among what to know when investing in real estate.
Valuation of the Property
Check the water and electricity facilities. Learn if there is any damage in need of repair. Ask yourself: “How much would I have to pay for the current problems If I moved in today?” Calculate the expenses, including ones for repair and other details, before giving and getting any quote. You can ask the seller to bear these expenses or fix the problems.
In a scenario where you buy a second-hand property, many sellers will not want to deal with issues in a house they are about to sell. It would be better to decrease the selling price in such cases.
Investment Purpose and Investment Horizon
Check whether the property is suitable for buying using a bank loan. It is important you check the information on the title deed, too. For instance, a property that the seller claims as 100 square meters might be actually 80 square meters according to the title deed.
What to know when investing in real estate is whether it complies with earthquake regulations. It is a point you shouldn’t ignore.
It is more important when a property starts to earn you money, rather than how much you will spend on it.
Expected Cash Flows and Profit Opportunities
Remember -real estate professionals follow the market and know better than anyone when there will be a fluctuation and in which areas. Therefore, it would be useful to receive professional support.
What to know when investing in real estate involves your knowledge of the area. Do not sign any papers trusting second-hand information as it would be the riskiest thing you would do. Gentrification projects provide valuable investment opportunities -however, investing in old buildings without a clear gentrification plan involves big risks. Evaluate how affordable property is.
Be Careful with Leverage
What to know when investing in real estate is how much money you will spend on your investment and how long it will take for the property to earn you money. The value of the property should be directly proportional to the return of investment. Expecting a large income in short term is possible but risky.
New Construction vs. Existing Property
Especially gentrification projects in big cities offer great opportunities. However, it would be risky to invest in an old building without a decided gentrification plan. Check the location and conditions of the building, along with its price.
Indirect Investments in Real Estate
You must see the land or house of your choice in person. Government imposes size and floor limitations on buildings based on the square meter of the land. It is important you see the vacant land in person to decide whether these limitations can be adapted or not and whether it will be a profitable investment.
Similarly, you should visit the land registry office and evaluate the apartment you are going to buy. Visiting the apartment alone is not sufficient. If you make such evaluations, you can detect if the so-called 120-square meter house is actually 70 square meters.
Your Credit Score
What to know when investing in real estate is not limited to the property itself -your credit score matters, too. A credit score is calculated by the credit bureau analyzing your financial history. All the financial institutions, particularly the banks, will examine your application after analyzing your credit score.
Buyers to use a housing loan
The credit score of the buyers who are to use a housing loan will be evaluated. Your credit score should be high to receive approval for your application.
Overall Real Estate Market
When investing in a house, store, or vacant land, do not take risks that may disturb the peace within your family. Use your savings for such investments.
Consulting a professional real estate agent to evaluate the zoning status and the commercial value of the property, along with government incentives that may affect the area, might be a good idea. Contact us through [email protected] to receive the guidance of true experts.