Investing in Resale Apartments – Advantages and Disadvantages

Real estate in Turkey represents one of the most attractive investment fields for foreigners, due to the country's stable investment environment and competitive prices. Investing in resale properties is a type of real estate investment that appeals to investors looking to enter the Turkish market, as this type complements rental investment as a promising investment option. This article aims to clarify the concept of resale investment, its types, benefits, advantages, and associated drawbacks, as well as provide important tips for investors.

Real Estate Investment in Turkey

Real estate investment in Turkey derives its strength from several factors, including the increasing demand for properties due to the country's strategic location and the notable growth of the real estate market. This sector is characterized by good investment returns compared to other sectors, such as industry or trade. The Turkish market is considered to be rapidly changing, which means that investment opportunities are continuously increasing. Additionally, real estate investment is generally safer and carries lower risks compared to other investments, encouraging many individuals to consider investing in this field.

What is the difference between resale apartments and transfer of ownership apartments?

Resale apartments are an important category in the real estate market, referring to those apartments or properties that are purchased directly from the current owner and are ready for use and habitation, making them an ideal choice for buyers seeking immediate settlement or instant investment for rental returns. In contrast, transfer of ownership apartments involves the sale of properties or apartments in projects that are still under construction, where the owner purchases them from the developer of a project in progress and then offers them for sale while the project is in the construction phase. This type of property provides investment opportunities for buyers looking for properties that may be ready for habitation in the future. Thus, both types reflect different needs in the real estate market and open multiple horizons for investors and buyers.

Resale Investment

Resale investment relies on purchasing a property and then reselling it after a period, either in the same condition or after making modifications and additions to enhance its value. This type of investment is characterized by flexibility, as it can be a short-term or medium-term investment, unlike rental investment, which is considered a long-term investment. In recent years, we have observed momentum in this type of investment due to the high financial returns that can be achieved in short time frames.

Types of Resale Investment

We can classify resale investment into several types, including :

1. Investment in resale properties upon completion of construction : This type of investment is short-term, where the investor can purchase properties that are still under construction. Upon completion, the property's value significantly increases, providing a good return.
2. Investment in resale properties after several years : This type involves purchasing ready properties and is characterized by medium-term investment. Although returns may be lower compared to short-term investment, the investor is surrounded by a lower percentage of risks.
3. Investment in resale properties for Turkish citizenship : It is also possible to invest in properties that qualify the investor for Turkish citizenship. This type of investment has a special character, as it combines investment returns with legal advantages.

Resale Guarantee in Turkey

The Turkish real estate market is considered one of the most regulated markets in the region. Investors are required to take good precautions regarding ownership documents and local laws. Investors are advised to consult legal advisors to ensure the safety of purchasing the property from potential legal issues.

Advantages of Investing in Resale Apartments

1. High returns : The returns that can be achieved from resale investment in Turkey vary depending on the type of property and its location. In exceptional cases, returns can reach 150% between different construction phases and sales stages. However, it is important for investors to recognize that every investment carries a degree of risk, and they should exercise caution and make informed decisions. While returns on ready properties vary depending on the waiting period before sale, it is noted that investors seeking to expedite the sale process face a decrease in profits. Therefore, it is advisable to wait between three to five years to achieve profits ranging from 25% to 50%. This investment approach requires patience and strategic planning to ensure satisfactory financial results.
2. Diversity of options : The Turkish market offers a wide variety of property options, from residential to commercial, enabling investors to choose what suits their needs and goals.
3. Legal facilitation : The Turkish government provides many facilities for foreign investors, including tailored offers and financing strategies.

Disadvantages of Investing in Resale Apartments

1. Market variability : The success of resale investment depends on the state of the real estate market, which can change rapidly, increasing risks.
2. Need for market knowledge : Successful investment requires precise knowledge of local laws, market prices, and influencing economic factors.
3. Time impact : Some investments may require a significant amount of time before they start generating profits, putting pressure on the investor.

Important Tips When Considering Resale Investment

1. Consulting experts : Obtaining advice from real estate consultants and legal specialists is essential to understand the complexities of the market.
2. Market analysis : Studying and analyzing real estate market trends before making investment decisions.
3. Risk assessment : Potential risks should be identified, and a strategic plan should be developed to address them.

Conclusion

Investing in resale properties in Turkey represents one of the most attractive options for investors looking to achieve high returns in a short period. By understanding the different types of this investment and the associated advantages and disadvantages, investors can make more informed and successful decisions in the Turkish real estate market. This type of investment requires a scientific and analytical commitment to achieve the desired investment goals.