Thinking about investing in real estate, but hesitating? It is normal to have difficulty deciding how to invest your savings. This is because many factors such as expectations, technological developments, economic conditions and rates of return affect the choice of investment instrument. Is investing in real estate profitable? Should I invest in real estate? I want to invest in real estate, but where should I choose? You can find the most accurate answer to your questions by contacting a reliable real estate consultant who knows the market.
CONTENTS:
1. IS REAL ESTATE A GOOD INVESTMENT?
2. WHAT ARE THE BENEFITS OF INVESTING IN REAL ESTATE?
3. WHAT ARE THE DISADVANTAGES OF INVESTING IN REAL ESTATE?
IS REAL ESTATE A GOOD INVESTMENT?
We can say that real estate investment, which is one of the options where you can turn your savings into investment, is a good investment tool. Land, properties, apartments and residences that you buy at the right time at the right price will provide high profit rates if offered for sale in the right price range in today's economic conditions.
With the effect of inflation, we are seeing price increases in the real estate market in the short term. While this situation emphasizes the importance of buying at the right time for real estate buyers, for those who will be selling, there will be a situation of indecision as to whether to sell early or not. In such cases, contacting a consultant with up-to-date market information will enable you to make more accurate pricing.
Real estate investment is one of the investment instruments that are considered to be concrete and retain their value from the past to the present. Of course, not every real estate investment will provide the same return. Depending on the location of the investment, public services in the region, investment demand, the amount of housing supply and price variables, each real estate will provide different returns. Land, property, olive groves, villas and apartments are affected by the variables mentioned above.
For example, an investment in land may not yield the expected return even after many years, or on the contrary, it may yield a return above your expectations with a rapid price increase in the short term. Particularly in the wake of the COVID-19 pandemic, increased demand for housing in coastal and rural areas has led to price increases.
This situation shows the importance of proper analysis of the real estate location and other factors. By communicating with the right real estate consultant in the selection of the region and the investment tool you will invest in, you will take the right step for a profitable investment.
Let's list the pros and cons of real estate investment for you. We want to help you, our clients, in the decision making process by making the right evaluation.
WHAT ARE THE BENEFITS OF INVESTING IN REAL ESTATE?
Here are some of the benefits of real estate investment:
It is a tangible investment instrument: With the effect of human psychology, the tendency towards visible, tangible and analyzable investments increases the demand for real estate investment. Land, property and apartment prices are also rising due to the increasing demand.
Possibility to use as a property: Instead of paying rent, individuals may want to own a house by using a bank loan in addition to their savings. In particular, you can look for housing with the dream of owning a house.
The opportunity to earn regular rental income: You can benefit from a fixed rental income by owning a house, residence, villa or mansion. In addition to the regular cash income from rent, your property will increase in value depending on its location and features.
Provides tax benefits: You can benefit from a deduction from the amount of income tax you have to pay on rental income up to the amount of loan interest paid on properties where you pay a mortgage loan, and you can benefit from tax exemption if you file regular returns.
Takes advantage of the price effect of inflation: Price increases in inflationary economies are reflected as price increases in the real estate market. The rental income from your rental property will increase in line with inflation. Your mortgage payments will remain constant in the face of rising prices.
WHAT ARE THE DISADVANTAGES OF INVESTING IN REAL ESTATE?
Here are some of the disadvantages that can occur with real estate investing:
Market Unpredictability: Economic fluctuations and uncertainties will lead to a decrease in the demand for real estate investments and consequently a decrease in prices.
Failure to choose the right location: Choosing the wrong location will result in little or no appreciation.
Risk of vacancy: The characteristics, age and location of your property will affect your ability to find a tenant. It may remain vacant for years due to unfavorable characteristics.
Bad tenants: While it is important to find a reliable tenant who understands the value of your real estate investment, sometimes you may not. In addition to the problems of misuse and failure to make timely payments, you may have to deal with years of foreclosure proceedings.
Improper cash flow planning; there may be a negative difference between the rent received for the property purchased with the loan and the loan and other expenses. In this case, the returns are insufficient to cover the costs.
Easily convertible into cash, i.e. liquidity risk; Depending on the age, location and demand, it may not be possible to convert the property into cash at the desired time. This can be mitigated through proper portfolio management.
The risk of foreclosure due to late loan payments; if home loans are not paid on time, legal proceedings will begin with default interest and a warning notice after 90 days of delinquency. You can reduce this risk if your income is proportional to the loan you will pay in real estate investment.
As a result, if you have decided to invest in real estate, considering the pros and cons will be an important step for your return on investment. Investing in the right real estate requires research and time. However, we are here to help you choose the right property for you,
As pinaryucel.com.tr, we add your real estate purchase, sale and rental transactions to our portfolio and sell them at the right time at the right price. In addition, we have a team of experts who provide services such as renovations and decorations that our clients need after the sale.
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