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Money stored at home usually loses its value due to cost increases of a large number of goods.
People who do not want to let the situation take its course, act correctly. What do the experts recommend in this way? Where do the experts advise you to invest in order to save or even increase your savings? We talk about this in the article.
CONTENT:
- How and where to invest money?
- Investing in real estate abroad
- Investment features
- Profitability assessment
- Turk.Estate will help you buy real estate in Turkey
HOW AND WHERE TO INVEST MONEY?
The main point of choosing the investment method is the minimum risk of losing money.
Before making a decision, it is necessary to carefully study a saving and increasing capital method.
Experienced economists give the following pieces of advice:
- Invest only available money.
- Do not invest money borrowed or loaned: if you lose it, serious financial problems are inevitable. Many people take the next loan to pay off the previous one, then another and so on.
- Whichever investment method you choose, find another source of income before implementing it.
- Take under control the invested funds.
Following these rules will help you avoid numerous mistakes and invest your money successfully.
However, remember that you need to not only save money, but also increase it. The most popular method for this is buying real estate. This method allows you to save your money even in a crisis, and after getting out of it to make a profit, doubled in some cases.
We cannot say the same about other property, such as a car purchase. A car value falls after the transaction through certain time, respectively, when reselling it cannot be paid off completely.
For example, a car becomes cheaper by about 15% within one year after purchase. After three years, it can only be sold for half of its original cost. It is difficult to say that such an investment is long-term and profitable.
However, if you invest in real estate, then renting it out, you can have a regular passive income. You can also get a good one-time profit after reselling the premises. Why is it possible with a car, but everything is different with residential or commercial real estate? Because houses, apartments, warehouses, offices and land plots regularly become more expensive, especially in countries that are becoming increasingly popular with emigrants and tourists.
An example of such a state is the Republic of Turkey. The demand for local apartments, villas, offices, warehouses, other business premises, as well as land for development and agricultural development is constantly growing, and such property is becoming more and more in demand among both tenants and buyers. That is why it is very profitable to buy real estate in Turkey and rent it out or resell it. Experienced investors know and use it.
Investing in Turkish real estate is more attractive than investing in Russian real estate.
- The average cost per square meter in Russia is more than in Turkey.
- It is easier to rent a house for both long-term and short-term rent in Istanbul and Ankara, as well as in Turkish resorts, than in Moscow and coastal settlements of Russia. It is difficult to find guests in the cold season especially for owners of Russian apartments and cottages. So, if there are tenants in the summer in coastal cities, then most of the premises are empty in the spring, autumn and winter. It is different in the warm regions of Turkey: there are travelers there for the whole year who usually rent accommodation for two or three weeks, and apartments and houses in Turkey are rented by numerous emigrants for a long period. In Istanbul, there are many businessmen who also rent apartments either for a short period or for a long time.
Those who do not have enough money for residential and commercial housing in Turkey apply for loans. Mortgages are now available even to foreign citizens in this country. Credit rates are often lower than rental income, so there is no need to worry that the guests' fees will not cover the monthly debt payments.
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INVESTING IN REAL ESTATE ABROAD
This investment method is currently recognized as one of the most reliable ways to preserve and increase an amount of money.
To make the investment profitable, first you should assess the possible risks and calculate at least a minimum profit.
INVESTMENT FEATURES
If you are going to invest in premises abroad, you have to consider the obvious and hidden costs. For example, the buyer of Turkey’s real estate pays not only for the premises, but also for a number of services.
- Tax on the purchase of an object.
- State fee for registration of TAPU (certificate of ownership).
- The work of an interpreter, who must be present at transactions involving foreigners (300 euros).
- Obtaining a power of attorney from a notary, if the transaction is carried out by a representative of the investor (100-150 euros).
- Real estate agency services (three percent of the purchase amount).
- Obtaining a technical passport for the property, if the object is new (approximately 300-1000 euros).
- Registration of real estate insurance (15-150 euros, depending on the technical features of the premises).
- Registration of a contract for the connection of utilities (200-300 euros when buying a new building and 60-150 euros for re-registration to another owner, if it is a secondary housing).
PROFITABILITY ASSESSMENT
In order for investments to be effective, you need to make a profitability assessment. In this case you have to consider the following parameters:
- expenses for the purchase of residential premises, including the payment of the basic cost, the amount of tax and other additional expenses;
- if a mortgage is issued, then the loan rates and the amount of monthly contributions to repay the debt;
- regular expenses for the maintenance of the premises;
- possible annual rental income.
Let's look at each of these items separately.
- So, one-time acquisition costs are not only the purchase price, tax fees, property insurance fees, contributions for registering real estate, payment for the services of a notary, lawyers, agents, but also expenses for the repair of the premises, its furniture, registration of a legal entity.
- Regular expenses are aidat, rental income tax, if you rent out the property, payment for management company services, monthly payments of the mortgage debt, if the property is taken on credit, utilities payment (sometimes water, gas and electricity are paid by the guests).
- In addition, minor or major repairs are possible during the operation of the premises, as well as legal costs if the tenants have to be evicted by the court (this may be if you decide to break the contract ahead of time).
To make an annual profit, you need to take into account the tenants' fees without deducting expenses, net income after all payments and expenses, as well as the possible cost increase of the objects if you plan to resell it.
You have to study the real estate market carefully in order to reduce the risks and buy the best option before making a deal. If you are searching for premises to buy, you should ask for help from experienced realtors, because they can tell you about the subtleties of Turkish legislation, help you see the prospects for payback, explain the features of the transaction. But professionals are ready to help not only theoretically. Realtors, evaluation experts and lawyers will guide you through all the stages of the purchase and sale transaction. Thus, you will not only save your money, but also increase your capital.
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TURK.ESTATE WILL HELP YOU BUY REAL ESTATE IN TURKEY
You can find objects for your requirements, for any purpose, for different tastes and wallets on the online-service Turk.Estate.
Here you can find offices, restaurants, cafes, land plots, villas and apartments in Turkey. Employees of the web portal, construction companies and real estate agencies will help you choose an object, issue and receive documents. It is convenient, profitable and reliable to become the owner of Turkish real estate with us.