Turkish real estate investment

Advantages and disadvantages of Turkish real estate investment

Real estate investment is a diversified investment risk so as to increase returns whenever the risk increases, investment in the real estate sector depends on the quality of the investor and the extent of risk and expectations for return on investment, including the investor decides the feasibility of investment in the real estate sector,
Other economic activities.

Each investment has its own characteristics that attract the investor towards it and make the heads of Sila flowing in. Real estate investments are important. They are characterized by many attractive factors such as high returns and easy access to finance. However, there are disadvantages to these advantages that can be prohibited and treated as future risks.

The real estate is divided into two parts: residential real estate and commercial real estate. We will explain what each department means and the advantages and disadvantages of investing in it before deciding to invest in any of them.
Residential real estate refers to all buildings used for residential purposes only (houses for sale - duplex apartment - villas for sale - etc.) Commercial properties are buildings that are not used for housing. Commercial stores include commercial real estate, retail, industrial real estate, residential buildings with five Units)

Firstly, for investment in residential real estate, the advantages are the ease of finding a tenant because people are always looking for an apartment or a house to live in. It is also inexpensive compared to commercial properties, and this type of investment, although the flow of money is small but it is characterized by continuity because people do not The search for a place to live, as well as that the place will not be without exploitation under any economic circumstances, as well as easy to display residential properties for sale, especially if the property is close to the vital sites and the existence of public facilities in it.

If you want to invest in residential properties, you have to deal with tenants directly and solve all their problems yourself. If you hire a real estate manager, it will cost you more than the rent. You may have problems such as not leaving your home when the contract expires or delaying the rent. , The presence of some damages in the property by some tenants, which costs you maintenance and repair of the property after the tenant left and before renting it to another.

Secondly, for commercial properties, it is not the property owner to deal with the expenses related to the maintenance and repair work or development of the property because the tenant deals with the property in a manner appropriate to its work and in the manner that leads the purpose of the property, the high rental value of the property and the length of the lease that may extend For a long period of time may be up to 6 years with the possibility of renewal, which achieves the excellent financial flow and the owner does not deal with tenants directly for the collection of rent and is not required to solve their problems because the commercial real estate investments are often managed by the trap Real estate management has sufficient experience in dealing with such things, and tenants have money because they work in various business activities

The disadvantages of this section of real estate is that it requires a lot of money because it costs a lot. In difficult economic circumstances, some tenants may be forced to leave before the lease expires. The landlord will pay the rent and the owner will pay the operational costs of the place as well as water and electricity bills for a period of up to Find a new tenant.

This kind of investment requires a lot of cash. The bank loans for this kind of property are less than the loans granted to residential properties. It is also difficult to find tenants who pay the amount required for rent. It is also difficult to offer the property for sale because the demand to buy or own commercial real estate Not dense