Real estate investment 2021: Why should I choose Turkey for real estate investment?

Top reasons why you should invest in Turkey. Explore the article to find tips for a profitable real estate investment in turkey.

Why should I choose Turkey for real estate investment? and why should I buy a property in Istanbul exactly?

Istanbul is one of the best places that you can invest in without thinking because of many reasons.

A huge number of investors are looking for a villa with a sea view or an apartment in a good location. Most of them are looking to buy an apartment in Turkey to spend the holiday several times a year.

On the other hand, the main reason for buyers is to move to another country and start a new life. Buying real estate in Turkey is a good choice for you if you want to get Turkish citizenship.

You can also rent and resell your apartment in the future and get more profit.

In this article, we will provide you with 10 secrets that you should know about Turkish real estate and the ways to buy a property in Istanbul in 2021.

Top Reasons for real estate investment Turkey 2021

The Turkish Economy

The Turkish government is dedicated to liberalizing economic and political institutions and establishing a stable and growing base. For the past 18 years, Turkey's economy has been experiencing a prosperous transformation.

Turkey's economy grew by 1.8 per cent year on year in 2020.

The Turkish economy still improves despite the coronavirus effect on the world.

The Turkish Statistical Institute has indicated that 5.1 trillion Turkish liras ($ 717.1 billion) are the gross domestic product (GDP) of the country last year (TurkStat).

The Turkish economy would rise 2.2 per cent in 2020, according to a panel of 21 economists polled by Anadolu Agency on Friday.

According to TurkStat numbers, the economy grew at a 5.9% annual pace in the fourth quarter of 2020. It also reported that GDP increased by 1.7 per cent and calendar-adjusted from the previous quarter.

Turkey and China have been the only countries in the G20 with a positive growth rate.

Last quarter's performance increased cumulative GDP by 16.8% from the previous year at current rates.

The US dollar/Turkish lira exchange rate was around 7.2 on average in 2021.

Turkey Population 2021

Turkey's population growth rate is currently 1.09 per cent, and it has been steadily declining year after year. Turkey's current population of 84.34 million is forecast to reach a high of 97.96 million in 2059, after which it will begin to decline. The population is projected to fall to 86.61 million by the end of the century.

Turkey's fertility rate is 1.99 births per woman, which is lower than the population replacement rate of 2.1. The birth rate is 15.3 per 1,000 inhabitants, a decline from previous years. Turkey's declining fertility rate could result in a large ageing population in the coming years. On the other hand, a population increase could result in increased unemployment and marginalization.

Turkey Population Growth

The population was projected to be 72.75 million in 2010, but it has now surpassed 76 million. These statistical studies indicate that the country's population has been steadily increasing since the nineteenth century.

Turkey Population Projections

Turkey's growth rate is expected to decline as we move forward into the twenty-first century. The population will continue to increase but at a slower pace. The population is estimated to reach 83,835,750 in 2020, and it isn't expected to reach 90 million until about 2035.

Foreign trade and the investment situation

Rewards for investment

Turkey offers benefits to both Turkish and international individuals and legal entities that invest in real estate and other types of investments. There are no special benefits for foreigners. Incentives are commonly intended to lower the cost of investments by providing financial, economic, and tax benefits.

An investor must apply for and receive an investment encouragement certificate from the Treasury's under secretariat in order to benefit from the various incentives.

Real estate Investment benefits

What is real estate investing?

There are several ways to invest in real estate. Buying, renovating, and selling properties (also known as flipping) is a popular real estate investment strategy.

Other investment strategies to consider are:

Investing in real estate and renting it out to long-term tenants.

Buying and renting out vacation homes or short-term rentals.

Real estate stocks and real estate investment trusts (REITs).

Crowdfunding real estate deals and developments.

Advantages of investing in real estate

If done right, investing in real estate can bring some significant benefits. From equity and passive income to a more diversified portfolio, there are many ways in which real estate can support your household—both financially and over a long period of time.

Here are some of the main benefits of investing in real estate:

Building equity for the future

When you pay off your mortgage loan or increase the value of your home's property, you develop your equity—which you can profit from later.

This may mean selling the property for a large retirement infusion, dipping the equity into cash-out refinance or HELOC, or even using it to purchase another property and increase your portfolio.

Real estate investing for inflation.

Inflation ensures that premiums for goods are rising, meaning that the same sum of money buys less. So, over time, inflation is eating away at the value or value of your income.

This is particularly bad for those who have cash on hand — or money in low-interest checking or savings accounts.

The solution is investing in inflation. But the big question here is which type of investment is suitable for this situation.

Real estate is both a real asset and an appreciation-oriented one. For example, Land, property prices and commodities, appear to climb in lockstep with inflation. You can also invest in real estate through a real estate investment trust (REIT) if you aren't able to purchase real estate yet.

Real estate investing will provide a buffer against potential inflation, unlike most other forms of investing. It is because of the cash flow you get from the property as the values increase (and dollar value decreases).

Establishing a steady stream of profits and cash flow

Real estate, especially rental properties, can provide steady and stable income (both residential and commercial).

If you're only doing a 9-to-5 job, it could mean extra cash to be used for holidays and nice-to-haves. And if you just develop your portfolio, it might be a whole different career.

Real estate investing is still a fantastic choice after you retire, helping to augment social security checks and other retirement accounts that you might already have in place.

You can influence your more extended community.

There are some advantages of investing in real estate especially for the market you invest in. You will contribute to providing much-needed homes and security for families, as well as supporting the local economy.

What's the better part? The more your society grows, the more valuable your assets get. What's the better part? The more your society grows, the more valuable your assets get. It's a self-feeding circle that will help you develop wealth and financial stability in the long run.

Diversification of your portfolio

If you already have stock, mortgage, gold, and other securities in your portfolio, real estate will help you diversify and reduce risk.

By spreading your funds across several various channels, you can more efficiently offset losses, should they happen.

In the long run, this means being able to withstand market fluctuations better and, in many situations, resulting in more currency.

Valuable Tax Advantages

You give yourself up to innumerable tax advantages as you invest in real estate. Depending on how you manage your real estate, all of your taxes become exempt business expenses, you may subtract your mortgage interest, and you might also be able to stop paying self-employment income tax on your rental income.

You could take out a new house or a holiday home.

In the end, investing in real estate seems to offer you some kind of asset. If you invest in a holiday rental house, your family will still be using the home the next time you need a getaway.

How to minimize risk in real estate investing

Real estate investment comes with some risks, but there are many techniques to decrease the risk and make sure you (and your money) are safe.
You can:

Get a full home inspection of any property you purchase: When you visit the house, you might even recommend bringing in an expert contractor who can help you measure what repairs might be needed and how much they would cost.

Consult the real estate attorney on each deal: This will help you mitigate exposure and ensure that you comply with municipal legislation.

Secure landlord insurance if you're renting out a property: This can protect you from liability should something happen at the home.

Have a plan for exit: Know what you're going to do with the property if the economy changes or you need fast cash. Will you convert this into a short-term rental? Move-in on your own? It is important to have a contingency plan.

You should also carefully select your properties. Work with an experienced real estate agent, make comparable sales in the city and make sure you make the right choice for a long time to come.