NEWS & EVENTS
Turkiye (Istanbul): What is a home and advantage to invest in Turkiye
In the last decade, pre-pandemic and during the pandemic, people have been migrating to other countries—the rise of digital nomads, foreign investments, new careers path, and a new lifestyle. In the past decade, people have been migrating to countries that would give them benefits of return of investments, matching their lifestyle, and falling in love with the country itself. It has a sense of romanticism involve, but a vibrant country like Turkey with a cosmopolitan city of Istanbul, that you get. Istanbul is a city that gives you a complete quality of life in health care, education, and return of investments with a new career path.
As we are in a period of an ongoing pandemic, everyone is facing new challenges. It has caused some significant impact on our psychological, emotional, and physical state. But as vaccination is rolling out throughout the world, lockdown and travel restrictions are slowly easing. Now, people can roll back the years and focus on their plans to embark on investments again. Or people nowadays are having a new project to focus on a better quality of life Health and psychological will on investors, potential buyers, and first-time buyers top priorities. But, of course, a return of investments and profits yield down the line is top of the list.
Istanbul, Turkey, does have lots of potential for investors and first-time buyers in the real estate market. Foreign investments in the property market have contributed to Turkey’s gross domestic product (GDP) since 2010. It is challenging to start or understand a home in Turkey, but this article will go through some steps and advantages and disadvantages of living in Istanbul.
Turkiye: What is a home
Wherever you will be investing, it is recommended to understand the requirements of each particular countries regulations of what a home is. In the action of investing or purchasing a property in any country, they would be a process to present your legal documents to prove your identity and authenticity. On the other hand, it would be better to know some home requirements in a particular country before investing.
In the case of Turkey, they are three main requirements of what a home is. According to dailysabah.com, the three main requirements of a home in Turkey are: “tapu,” “imar,” and “iskan .” In chronological order, “tapu” is title deeds, “imar” is a building license, and lastly, “is a” habitual certificate. As stated on dailysabuh.com, it is paramount that all properties to invest in Turkey should have all the three requirements above.
To be a homeowner for a property you purchase, you want to have full ownership. Understanding your property has no previous debts and understands your name makes having a title deed “tapu” paramount to start your investment in Turkey’s real estate. In Turkey, title deeds come in two colors: red and blue. The color red represents to be units such as condos or apartments. The color blue title deeds represent houses or detached houses. Secondly, having an “imar” is to have a building license mainly affects investments in condos and apartments to have a proper building license. Finally, in a country where earthquakes can be pretty dangerous, each property will need to have “iskan” a certificate representing your property is habitable. A property in Turkey, which means habitual, has to withstand earthquakes.
There are reasons why people would want to move to other countries. In the case of Turkey, investments in real estate happen in major cities. Significant cities in Turkey include Istanbul, Ankara (capital city), and Izmir. People do invest in other parts of Turkey as well. With many beach destinations in the Antalya region, mainly for European ex-pats. As stated, Turkey is a beautiful country, with a vibrant city like Istanbul they are pros and cons in everything city when you move in, and here are some for it, of Istanbul.
Cost of Living: For one, a country that connects Europe to Asia, a member of the European Union (EU), trades talks with America, and in 2021, having trade talks with members of ASEAN countries; the cost of living in Turkey is reasonably cheap. Most investors or careers changes look into Istanbul as a European city with a low cost of living. The price of home amends compare to major European and Asian cities is reasonably lower than expected. On the other hand, Istanbul has a high tax rate on goods and foreign goods such as cars or even high taxes on alcohol and cigarettes. Compared to neighboring countries, Istanbul has a lower cost of living and a healthy lifestyle.
New measurements in Taxes: As the Lira decreased by 8% to the dollar reported on globalpropertyguide.com, as foreign investors exchange to the Lira, you get the value of money and buy in return. As to purchase or invests in a property in Turkey needs to trade for Lira. It’s an opportunity to invest in a better value with interest rates are high as well. Changes in 2016 made for more foreign investors in property opened up to 184 countries. With stamp duty and VAT lowered to be almost non-existence, it has made a surge in the housing market. An unorthodox way to help the currency crisis in Turkey is to increase banks’ interest rates.
Bank Interest rate: The Turkish Lira is in turmoil, but an opportunity to invest when you get a property for better value of money. With bank interest rates high in Turkey, many ex-pats deposit large amounts of money. Retirees or property investors withdraw the interest monthly; hence, they never have to touch their net worth, and the interest often tops up their pension.
Economy avoids decline: Not many countries can say it during the pandemic, but Turkey can. To date, Turkey’s economy grew 1.8%, as reported on globalpropertyguide.com. Bringsgs lots of confidence to foreing investors looking to invest in housing, knowing your property will return for investments. In Turkey, purchasing and invests in the housing market leads to citizenship. A major schemes in Tukey for investments in through property. You obtain citizenship for property purchases ($250,0000 and more, while also receiving a working and living visa in the United States. As an investor who plans to do business in the United States or involve in start-ups is a significant benefit. Turkey is a young country, leading in electronic marketing, rising of start-ups, and digital fanatic, creating a business in Turkey has becomes feasible.
On the other hand, moving to a new country does bring some challenges and disadvantages to anyone. For instance, in Turkey, language barriers can be a problem. They are people who will speak English, but the level of English can be similar to a second-grader. But it is also not hard learning the language. From experience as saying a few Turkish, the friendly attitude of the coffee and tea person will change to a mindset for being your best friend. Secondly, Turkey is considered an Arab state or country where people are still Islam. So in a few places, people can be conservatives, but 80% of the population are not. Istanbul especially is considered to be a city that never sleeps, such as in London or Bangkok. As stated on globalpropertyguide.com, rental yields in some cities in Turkey are not so attractive. In major cities such as Istanbul, rental yield can be from2.8% to 4%.
But on the other hand, as an investment portfolio, Turkey is an attractive housing market with the potential of return of investments in the short term. Turkey as a whole is a vibrant, colorful country. The country is a view of beautiful beaches, historical architecture, districts, and markets. People are friendly and social and sometimes a bit too pleasant by asking personal questions, but that is the culture in Turkey. In Istanbul, shop owners are like your friend, and when it comes to Turkish food, there is everything for anyone. The outlook for Istanbul’s opportunity is considered now, as prices are low, exchanges rate is of value, and ownership household rules have eased significantly. They are investing in a warm climate, warm people, and sipping its famous Turkish tea in the crossroad of Europe and Asia.