|Thursday, January 12, 2023
Real estate is the best investment in the long run, and the Turkish real estate investment market has no right.
Investing in Turkish real estate: renting or selling?
Real estate is the best long-term investment, and the Turkish real estate investment market has no limits. Many foreigners flocked to take advantage of lower prices, new buildings and the potential for increased capital and investment.
Where the real estate market in Turkey has gained wide popularity in recent years, Turkey has become the preferred destination for the Arab investor interested in searching for apartments for sale in Turkey and buying apartments in Istanbul.
Foreigners’ ownership of real estate in Turkey or any other country is a big step, and its owner must study the Turkish real estate market before entering the world of real estate investment and ownership.
But there is an important question to think about when buying a property, which is whether the property should be rented or sold?
In this article, we will help you make the right decision, so first it is always better to define your goals before starting, knowing your goal helps you to start in the right way.
As reselling the property or offering it for rent are two different things, and they require a different approach in choosing the property and dealing with the process, so it is important to decide which one you would like to follow from the beginning.
The difference between reselling the property and re-renting the property
If you want to resell the property often you want this process to be done quickly to get your capital back with profits as soon as possible.
But it takes more than money, it requires your ability to buy and follow up on repairs to resell as quickly as possible to make a quick profit.
Renting out the property requires fewer repairs, but will need more time to start making profits.
Also, rental properties require a long-term commitment to make the necessary repairs, but they also provide a long-term return.
As for the capital gains tax in Turkey, the sale of the property five years before its ownership bears the capital gains tax, on the profits made between the purchase and sale prices. In the event, when the owner earns 70,000 TL or more, the burden is up to 35%. In Turkey, it is worth waiting five years before selling.
This means that being a home owner requires patience, as dealing with tenants requires a lot of time out of your day. Tenants often have high demands, incur maintenance expenses, and while cleanliness is everything, some tenants are leaving homes in need of urgent repairs and decorations.
This means that if you want to rent property, marketing and property management are essential skills that you must have.
In terms of paying taxes as with any other income, landlords in Turkey must register and pay taxes. Lower earnings are tax deductible, and you can still claim the expenses. However, you must register with the GIYKIMBIL system, to register everyone who lives in your property, to organize and notarize official contracts and to use an accountant to handle the finances. Structured, positive and excellent financial management are highly sought-after skills that an owner must possess.
Frequently Asked Questions:
- Is a foreigner entitled to buy more than one property in Turkey?
The Turkish government has made many amendments to the decisions of foreign ownership of real estate, as it lifted the ban on some Arab nationalities who were not entitled to own property in Turkey, and made it easier for investors to purchase and the possibility of owning more than one property.
- Can the property be resold?
A foreign property owner can sell his property at any time he wants. We advise our valued customers when they intend to sell the property to coordinate with one of the trusted real estate companies or offices
- Is a foreigner entitled to buy a property in any Turkish city?
Foreigners have the right to own real estate in all Turkish cities, and we advise our clients who want to buy real estate in Turkey to choose Istanbul, as it is the economic and tourist capital in Turkey and has the ingredients for a successful investment.
- What is the capital gains tax when selling a property in Turkey?
The capital gains tax rate ranges from 15% to 35%, to be paid only if the property is sold within 5 years from the date of purchasing the property in Turkey.
- How much is the property tax in Turkey? Is it annual?
The property ownership tax in Turkey is 4% of the total property value. It is paid only once, at the Department of Lands and Land Registry, when registering the property in the name of the new buyer, and issuing the title deed in his name.
- Can I get a residence permit in Turkey if I buy a property?
Yes, the foreign property owner in Turkey obtains a real estate residence that is renewed annually for him and his family.
- Is it possible to buy a property remotely in Turkey without coming to the country?
Yes. It is possible to buy real estate without coming to Turkey, through a legal agency to represent you in Turkey, and the agency is conducted at the Turkish embassy in your place of residence.
- Why is it preferable to buy through a real estate agent in Turkey?
- Benefit from the services of a licensed real estate agent, before and after the sale, including airport reception, translation, real estate consultancy, real estate tours, and others.
- See a wide range of properties that match your criteria, not just a single developer.
-Benefit from the agent's experience in the Turkish real estate market, as well as the presence of an integrated team dedicated to support you.
In this article, we have explained to you the difference between reselling the property and re-renting the property, and now you can make the right decision for you when buying the property.
And you can contact us at FCC Real Estate Group, as we have a distinguished and professional real estate advisory team as we put in the hands of our valued customers years of practical experience for our team and always strive to gain your trust and ensure the success of your investment.
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