People generally invest their money in interest, foreign currency, the stock market, gold and real estate.
When you want to make a real estate investment with rental income, it is necessary to look at the rental income of the workplace or residence to purchase real estate at the right price. This is the rational approach in determining the price of housing or workplaces. While establishing loans to the buyer, the institutions that establish loans to real estate take into account the amortization period of the real estate by evaluating many factors such as the income of the buyer, the other properties owned, the mortgage, the surety and the credit history.
Real estate depreciation periods are observed which vary according to countries, cities and different regions of the same cities.
real estate depreciation period in Turkey varies between 20 and 15 years overall. In other words, the property you have purchased pays for itself between 15 and 20 years with rental income. This period can be extended longer abroad.
The decrease in interest rates has an effect on prolonging the amortization period. In other words; Falling interest rates raise property prices, opening up the price / lease, thereby prolonging the depreciation period.
The price / rent ratio of the housing investment in Fethiye corresponds to approximately 18-20 years. The price of residential workplaces returning 18-20 years or less in Fethiye is considered appropriate for the buyer.
However, the fact that a real estate of the same size, of the same quality, in the same region, has a sea view, may not be explained by associating it with rental income, which is the subject of high sales prices.
Price and value are different things.
While an apartment is sold at a price of 500.000 TL, the rent will be amortized by 1250 TL in 400 months (33 years). However, the average 240 months or 20 years amortization period we give you in real estate evaluation will not be valid in this case. The 160-month (13-year) difference here is the prestige difference that property provides to the property owner. In other words, the life quality it provides to the property owner is the difference.
The return of the workplace or residence is rent.
Although there is no rental income for the land, if no housing will be built in a short time, the price is purchased with the expectation of an increase in valuation. However, the main factor in the valuation of the land is demand and housing / workplace prices. The price of the plot can be determined by comparing it with peer shopping. In addition, land cost can be determined by calculating the housing sales prices.
Political and economic stability, credit interest rates, population growth or demand increase or decrease in the region affect real estate prices. (For example, low interest rates will increase housing and workplace prices or real estate demand of local / foreign nationals concentrating on certain regions will have an effect on increasing real estate prices in that region.)
One of the general rules in real estate investment; “Office investment earns more than housing investment”.
If you are considering buying housing for rental income, we recommend that you purchase a business rather than housing for rental income.
Houses bought to be rented may upset its investors in the long run.
Some of the rents received after the tenant evacuates the house.
The tenant pays shop rents more properly than the house rent.
Repair work repair costs are made by the tenant.
When you think of selling the business, you sell it more easily.
It would be a better choice for the investor, who aims to generate rental income, to go to the investment in the workplace.
For investors who do not need rental income, purchasing land from the development areas of the city may be a good investment in the long run. Investors who do not need rental income, which can think even longer, can also buy fields in the development areas of the city. You can think of the land as your investment in your retirement, the field in your children.