These are the reasons for the failure of real estate investment in Turkey
Last Updated: 2023-07-27These are the reasons for the failure of real estate investment in Turkey
There is no investment on the surface of the earth that is free from troubles and defects, or perhaps from failure at a late stage. Real estate investment is not an exception to the rule at all. Despite the great and wide success that Turkey was able to achieve in the investment field during the past years till the present time, however, you always find that there are some gaps through which failure or loss may spread. However, failure in this project always remains the weakest possibility, but you must be informed of everything related to this matter in order to be able to rectify it in the coming days.
Turkish real estate has different types, but what is the reason for the failure of each of them?
Reasons for failure of residential real estate investment:
There are many problems facing the investor for residential real estate in Turkey, the most important of these problems is that you, as an investor, have to deal with your lessor directly, listen to his problems and work to solve them as well. There is a problem of non-compliance with the periodic payment of the rent and this is one of the biggest problems that the investor or the owner of the property can face in the event that the tenant causes damages, you, as the owner of the property, will be charged with the costs of you and the costs of what others left behind.
Reasons for failure to invest in commercial real estate:
It is possible for the real estate investor in Turkey to find some problems in his project, for example, if an economic disaster strikes the country, the business will stop immediately or perhaps its level will decrease and thus the commercial real estate will be empty from the tenants and the investment owner will lose his money or some of it in this project. In general, in commercial real estate, it is difficult to always find merchants; because of seasonal transfers or because of the type of projects in the country, and investors for this property always change their place of work. In addition, if the owner of a commercial property in Turkey wants to sell this property, he will also find it difficult to do so because the demand for buying a commercial real estate is much less than the demand for a Residential property; most people prefer to rent commercial real estate instead of buying it, moreover, this type of investment always needs huge amounts of money to be established.
Economic disasters cause the failure of real estate investment in Turkey:
It is possible for the real estate investor in Turkey to find some problems in his project, for example, if an economic disaster strikes the country, the business will stop immediately or perhaps its level will decrease and thus the commercial real estate will be empty of tenants and the investment owner will lose his money or some of it in this project. In general, in commercial real estate, it is difficult to always find merchants; due to seasonal shifts or because of the type of projects in the country.
Buying a property in installments is a valid reason for the failure to invest this property:
There is always a fear on the part of the real estate buyer in installments "Will he be able to pay the installments on time or not?" Perhaps he may face problems or crises that prevent this, but this issue is resolved because whoever buys a property in installments will pay approximately thirty to forty percent of the price of the property as a whole in the first payment. For the rest of the payments, it can be agreed upon between the buyer and seller, as it is not fixed or unified for everyone, so you can put the monthly amount that fits your budget.
Bad management is a reason for the failure of real estate investment in Turkey:
The administrative body managing the real estate investment project in Turkey may be bad or not competent, because here is where the failure of this investment will lie, so those who are trustworthy must always be chosen in order to take on these tasks.
Not adhering to standards strictly:
Also, in the event that the agreed standards are violated, the investment failure will be their ally for their violation of what was initially agreed upon, for example, the internal and external agreed design must be adhered to, and all financial and paper guarantees as well.
Distracting the investor's attention by more than one investment position:
There are many investors exposing themselves to fall into the consequences of failure with this investment, for example, he puts his money in more than one project, and each investment is radically different from other investments, so he will not be able to outperform any of them.
Using a broker instead of a real estate consultant is one of the reasons for investment failure:
A broker is a person who represents his personal interest and acts as a direct mediator between the seller and the buyer and receives a commission by agreement, but he is often not aware of everything surrounding the property or establishment, but rather he is only a broker for the sale and purchase.
The real estate broker is only a dealer, but a dealer with information only, and one of the most disadvantages of the broker is that he contributes to raising prices sometimes in an unjustified manner and sometimes lacks credibility, so contractors run away from brokers except in the narrowest limits, and this is one of the most important reasons for the failure of real estate investment in Turkey.
As for the consultant, he represents your interest and is not necessarily a real estate broker, but he can definitely explain the real estate and cultural map of the area in which you want to buy your property, in addition to reviewing new construction plans with clients and preparing options and available features. He would help you in choosing the right property and providing recommendations and suggestions. He also has experience in the real estate market to save you effort and time, and his role is to write the contract.
Edited by Mersat Real Estate Team ©
Real estate Articles
Real estate News
