Types of Properties and Property Investment in Turkey
Property investment in Turkey’s most beautiful city, Istanbul, is a great opportunity for investors both local and domestic. Inheriting the legacy of millennia and civilizations, and hosting a population of 16 million people, Istanbul is the heart of the business, entertainment, and civic life of Turkey. Annoying its resident people with traffic jams, rude taxi drivers and humid air is definitely not the identity nor description of Istanbul. When considering property investment in Turkey, the city of Istanbul is one of the best investment options, both in terms of short-term and long-term investments.
Alley cats that will purr to you with your first touch, delicious cuisine pallet from street food to fine dining from all around Turkey and the globe, ferries, and bridges connecting two continents, never sleeping night-life, a combination of all faiths’ living in harmony and many other natural and anthropic things make living in Istanbul a unique experience for everyone.
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Lots of Property Options in Istanbul
Considering the fact that we all need a shelter for our residency or business needs, a city offering so much naturally has a lot to serve as well. You can find high-end residential units in compounds or towers with multiple facilities (24/7 security, swimming pool, gym, etc.), or more humble apartments, villas, seaside mansions, world grade LEED-certified offices along with more humble ones as well, serviced offices, industrial buildings, top-quality hospitality services or healthcare services; actually, anything that you may require is available in the city of Istanbul. You may rent any of those or buy them; use them for your own residential or business purposes or benefit from the rent income.
Despite the global waving, Istanbul’s property market still offers a 5-6% yield on income-producing assets. Along with its benefits on residency, especially units available for commercial use (even if its title deed is defined as a residence) also provides an exceptional 25% extra benefit.
What is “Withholding Tax?”
By common practice, which is also approved by the courts of law, if a property is owned by a private individual, the tenant is obligated to pay the “withholding tax,” which is 25% of the net rental income on behalf of the landlord. Therefore, this rent amount gets directly deducted from the landlord’s income tax. As a result, in case you have a lease contract for a commercial property worth 100,000 Turkish lira + withholding tax, your annual actual income is 125,000 Turkish lira, which is a unique advantage Turkey has to offer.
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Types of Properties in Turkey and The Features of Each
In the previous several years, Turkey’s real estate industry has experienced a substantial and spectacular expansion and growth. Despite the challenging circumstances in which the Turkish economy found itself, this expansion was maintained. The availability of many different types of properties in Turkey of all sizes and shapes contributes to the constant and continuing demand for Turkish real estate. This has also aided in attracting more international investment into the Turkish real estate market since the variety of real estate types available ensures high and predictable investment returns in Turkey.
And the sorts of properties in Turkey are not the same as those in other parts of the world. Those interested in real estate investment in Turkey should get familiar with these distinctions in order to understand the current status of the Turkish real estate market and, as a result, have a comprehensive picture of their future investment in Turkey.
Types of Properties in Turkey: Generally speaking, properties in Turkey are classified into two main categories, old or resale real estate and new real estate, under which the most detailed types belong, and these two types ensure a huge number of types, which we shall discuss in depth. This post will teach you all you need to know about owning and investing in different types of properties in Turkey.
Residential Properties in Turkey
Residential properties in Turkey encompass a wide range of housing kinds, and they are the most popular and sold form of property in contrast to the others. Residential properties are utilized for a variety of purposes, including shelter and stability, as well as investment to provide a consistent monthly or yearly return. They are apartments that are part of a larger complex. They are generally more expensive than flats in conventional buildings, and these residential complexes stand apart by offering a variety of amenities:
● If or not day and night security guard(s) are provided by security agencies,
● If or not swimming pool(s) are available,
● If or not sauna(s) and fitness center(s) are available,
● If or not Turkish bath(s) is available,
● If or not building cleaning, care, and maintenance services are available,
● If or not playground(s) and private garden(s) are available,
Payment can be made immediately or in installments, depending on the terms of the arrangement. When paying in installments, the price of the apartment rises by 10% to 50%, depending on the length of the installment and the down payment.
Residential apartments outside a residential complex: It’s really generally self-contained structures with 4-10 stories at most, however it is devoid of any amenities other than those supplied by the Turkish government in each area. In Turkey, the average price of an apartment in an independent building outside of a housing complex is around $60,000, with prices varying based on the location of the property. Apartment prices in Istanbul, for example, are greater in independent buildings in touristic and commercial areas than in other areas.
A lot of options for Property Investment in Turkey
Contrary to the examples in the mainland of Europe and the UK, developers in Turkey usually build and sell, rather than build and let. Therefore, you can find affordable commercial units in the central business district for your private investment purposes.
Not only by being an imperial capital for two empires, not only being the core of the life of Turkey, not only connecting two continents; Istanbul has a lot to offer, both socially, business-wise, and for property investment in Turkey.
Make sure to hire an expert legal firm in Turkey to handle all of your legal affairs.
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