Real Estate vs Gold Investment in Turkey: A Comparison
Last Updated: 2023-09-26Real estate or gold to invest in Turkey
A comparison between investing in real estate and buying gold in Turkey is an interesting topic that occupies many minds. Both investing in real estate and buying gold require a deep study and understanding of markets and volatility. In this article, we will explore the differences between investing in real estate and acquiring gold as a means of storing wealth in Turkey. We will provide tips and guidance for people looking for profitable investment opportunities and safe ways to preserve their wealth. In this article, we will put in your hands a summary of a comparison between real estate and gold
Real estate investment in Turkey
When we talk about real estate investment in Turkey, we find that this market has witnessed steady growth in recent years. The reason behind this is the increasing demand for real estate by local and foreign investors. Real estate in Turkey is considered a safe and sustainable investment due to the high rental yields and the increase in the value of the property over time for the following reasons:
Return on investment
Variety and selection
Turkey offers a wide variety of different properties, ranging from apartments in major cities to villas on the seafront. This gives investors many options to meet their needs and strategies.
Foreign-friendly laws
Turkey easily opens its doors to foreign investors, providing them with appropriate laws and policies to protect their rights. This increases the attractiveness of investing in real estate in this country.
Benefits of investing in real estate
- Value stability: The property allows its value to stabilize over time, and the demand for it can increase.
- Monthly income: Properties can provide monthly income from rents, enhancing the sustainability of the investment.
- Diversification: Investors can diversify their portfolio by owning properties in different locations.
Challenges of Real Estate Investment in Turkey
Additional costs
Foreign investors must pay additional fees such as VAT and registration fees when buying property in Turkey. These costs must be taken into account when planning an investment.
Changes to the regulations
Real estate investment regulations in Turkey may change over time, which can affect the investment conditions and fees required. Investors should carefully monitor these changes.
Currency and its fluctuations
Turkey suffers from the volatility of the local currency, and this can affect the value of foreign real estate investments. Investors should consider these factors when planning an investment.
Gold for wealth storage and investment in Turkey
Buying gold is one of the oldest and most popular investment methods in the world. Gold has a strong reputation as a store of value and can be a good choice for investors looking for a safe investment.
Traditional stability of gold
Gold has long been considered a safe haven for wealth. Gold retains its value steadily over time and is considered a protection against inflation and economic fluctuations.
Investment Portfolio Diversification
Buying gold can be an excellent addition to your investment portfolio. Diversifying your portfolio can reduce financial risk and increase the chances of return on investment.
Full control
Buying gold gives you full control over your money. You can access your gold investments easily and anytime you want.
Benefits of buying gold
- Resistance to inflation: Gold retains its value in the face of economic inflation.
- Easy to carry: Large amounts of value can be carried in small gold form.
- High liquidity: Gold can be easily sold if cash is needed.
The Challenges of Buying Gold in Turkey
Secure Storage
Gold owners should look for safe ways to store their belongings, whether it is in their home or in a safe place. This can cause additional costs.
High costs
In addition to the price of gold itself, there are fees for buying gold and fees for storing it. Investors should account for these costs when making a purchase decision.
Volatility in gold prices
Gold prices are influenced by multiple factors including global supply and demand and global economic events. This can make gold prices volatile, requiring careful market analysis.
Comparison between investing in real estate and buying gold in Turkey
1- Return on investment
Real Estate: Investing in real estate requires a long time before you can achieve tangible returns. You may need to wait a few years to start making good profits.
Gold: Buying gold can be a quick investment. You can easily sell gold when you need cash.
2- Diversity and choice
Real Estate: You may find it difficult to find a property that fits your exact needs. Sometimes options can be limited.
Gold: You can easily buy a small or large amount of gold, making it an option for everyone.
3- Laws Favourable to Foreigners
Gold: Foreigners can buy gold in Turkey through goldsmiths and banks. Laws allow this choice easily as well.
4. Risks and Returns
Real estate: Real estate investment can provide sustainable annual returns, but it comes with additional costs and changes in regulations.
Gold: Buying gold provides stability and protection against volatility, but requires safe storage and can be volatile in value.
5- Objective of investment
Real Estate: If you are looking for an annual income, you may prefer to invest in real estate.
Gold: If you are looking for protection against economic fluctuations, you may prefer to buy gold.
6- Financial liquidity
Real estate: You need time to sell and may be volatile in the market.
Gold: Gold can be easily sold at any time, making it more liquid than real estate.
How to make the right choice
Despite the multiple benefits of both investing in real estate and buying gold, there are factors that need to be considered when making a decision:
- Investment Objective: Do you want to generate a sustainable monthly income or to store wealth securely?
- Risk level: Real estate investment can be more sustainable, while gold can be less stable.
- Time: Do you need to make quick returns or can you invest for the long term?
Conclusion Your choice between investing in real estate and buying gold in Turkey depends on your personal goals and risk tolerance. Each of these options comes with its advantages and challenges. The important thing is to be aware of the available options and consult with a financial professional before making your final decision.
We encourage you to contact Mersat Real Estate to get the best real estate investment opportunities in Turkey. Applying the Turkish Citizenship Law to Real Estate Investment with USD 400,000 can be a great opportunity to obtain Turkish citizenship and benefit from the advantages of investing in Turkey. We are here to help you get additional information and guide you towards the best decision based on your needs and goals. Please feel free to contact us.
Edit: Mersat Real Estate©
Frequently asked questions
1. Is real estate in Turkey safe as an investment?
Yes, real estate in Turkey is considered a safe investment due to the stability of the market and high rental yields.
2. Can I buy gold in Turkey easily?
Yes, you can easily buy gold from recognized gold shops in Turkey.
3. What are the expected returns from investing in real estate in Turkey?
You can expect high rental yields ranging from 7% to 10% of the property value per year.
4. Can I sell gold at high prices in the future?
Yes, you can sell gold at higher prices than you bought it for in the future if its value increases.
5. Are there taxes on real estate investment in Turkey?
Yes, there are taxes on real estate investment in Turkey that depend on real estate value and rental income.
6. Is gold affected by economic volatility?
Yes, the price of gold can be affected by economic and political fluctuations, but it is usually considered a safe haven in difficult times.
Related articles:
Real estate Articles
Real estate News
