I Bought Eight Properties in Turkey and Learned This
I’ve bought eight properties in Turkey over the last decade. And learned some important lessons the hard way. I will share my biggest learnings from buying property in Turkey, so you can avoid making these mistakes.
All information in this article and more is also included in my YouTube video:
Overview lessons from 8 property purchases
I’ve bought seven properties in Istanbul and one in Ankara. Over the years, their value nearly doubled. Rental income made us financially independent. I quit my job in Germany and today we live comfortably from our properties. In this article, I will share my five biggest learnings if you are also considering buying property in Turkey:
- Location
- Working with an real estate agent
- Trust
- Investment properties
- Choosing a tenant
1) Location
Let’s start with the first and most important lesson. YOU must decide on location. The most important rule in real estate is location, location, location.
For example, Turkey has many beautiful beach towns along the Aegean and Mediterranean coasts. The same applies to Istanbul. Istanbul is huge, almost like a country on its own. Every district and neighborhood has a completely different vibe. It really depends on what you are looking for and on your budget.
This step takes the longest time. Explore different cities and neighbourhoods over the years. Try to understand where you really feel happy. This is the single step where most people make expensive mistakes.
2) Working with an real estate agent
My second advice is: Do not commit yourself too early to one real estate agent. Most agents focus on a neighborhood or a specific type of properties.
For example, if you ask an agent in Istanbul Basaksehir, he will only show you properties from his own portfolio in Basaksehir. First, agents earn higher commissions when selling properties from their own portfolio. Second, they are not incentivised to help finding the best property in Turkey for you. They earn the same commission anyway. Very often, they try to sell you something quickly. But maybe another agent has a better property in the same area. Or maybe that area is not right for you at all. In that case, that agent won’t be helpful to you.
So when are real estate agents useful? Once you have found your dream property and it has an representative agent, that agent will support you during the entire purchase process.
3) Trust
My third advice is: Do not take anyone’s word for granted. Developers and agents often make big promises, like: This is an amazing location. You can easily earn a certain rental income or prices will double in the next years. Most of this talk is just noise.
You must verify everything yourself. This applies in particular to the purchase process. For example always check whether the title deed is sound. Also very important: If there is a tenant in the property, make sure he or she will actually move out after the purchase.
4) Investment properties
My next advice is about investment properties. Again, the most important factor is location. All seven of my investment properties are in highly sought-after locations. The best returns most often come from older properties in prime locations, that you renovate nicely and rent out furnished.
In my experience, the best investment opportunities in Turkey real estate are in Istanbul, because demand from foreigners is highest here. This is, however, only true for specific areas.
High-rise buildings in outer city locations are heavily marketed to foreigners. But these are most often not good investments.
And one important remark: Only buy an investment property in Turkey, if you genuinely love the city and could imagine living there one day part-time or full-time. If you buy only for financial reasons, the whole process will just frustrate you. There are easier investments if return is your main goal.
5) Choosing a tenant
My fifth advice is about choosing a tenant. This mistake cost us a lot of money and stress. Do proper due diligence. Ask for salary slips, credit scores and a guarantor to co-sign the rental contract. Real estate agents are helpful when searching for a tenant. I am speaking from experience here.
We had problems with a few tenants at the beginning, because we were quite naive. It took us more than half a year to legally evade a non-paying tenant. Today, we are much more selective. It is always better for a property to stay empty for a while than to have a bad tenant
How to find your dream property in Turkey
If you want to learn how to find your dream property in Turkey, and which cities I recommend for foreigners, watch this full guide here.
You can explore other articles about Istanbul by clicking on one of the following categories: