Dealing in real estate could and house flipping could be a lucrative choice either as a full time career or just an investment strategy and side hustle. The gross profit on rent property in Istanbul, is substantially greater than many of the corresponding European cities. The profit margins are expected to rise in coming times with new developments taking place almost in every part of the city. Earlier, only the central part of the city was considered profitable for rental income, but with new projects coming up in the European side, new choices have emerged.
Success strategies for rental properties in Istanbul
It makes sense that many real estate investors and home buyers from round the world are queuing up for rental properties in Istanbul. The steady rise in number of properties sold for rental purpose indicates the same. However, it is not just like any other markets, knowing how to analyze the real estate market in Istanbul, will help you earn the profits and invest in safe and hassle free properties.
Homeownership rate- This is one of the key indicators of the fact that how many people actually own their own houses and the percentage of people going for rental properties. For a city like Istanbul, the rate of homeownership is quite high. However, the rising number of people coming into the city for various commercial purposes has contributed to rising rate of rental properties. The rents are also high and are expected to rise.
Median household income – Before investing in rent property in Istanbul, a mindful investor must consider the median household income of the people of the city. For Istanbul, the median household income has risen considerably in the past decade.
The rising trade commercial link of Istanbul with the rest of the world, especially with Europe and Asia, Istanbul is now one of the major business hubs of the world. Several multinational companies and construction companies, have their regional headquarters in Istanbul. All these indicate that the local people are in for high standards of living. There are also a good number of foreign citizens living and working in the city. These factors help for a rise rent property in Istanbul.
Average home value in Istanbul
When looking for rental properties, the home value, or the worth of the houses is an important component. In a traditional city like Istanbul, the home value is considered higher as compared to cities that have recently opened doors for real estate investors. The demand for houses in the market is always high. This increases you chance of renting the house or flipping it on short term or long term basis. Like any other investment hub of the world, Istanbul has low housing cost. Remodeling costs may be an additional cost for fetching up good rents from rent property in Istanbul.
The listing prices could help you better
For investors from foreign shore as well as local buyers, an eye on the average listing price that the least price expected by the sellers for their houses, could be indicative of their own profit margins from any project. Look for properties with lesser listing prices.
The second point is the average sell price. The average sell price is the prices the houses actually sell. The rent property in Istanbul is sold for higher sell price. It is profitable to go for properties with marginally high sell price if looking for renal prospects. This is because, these properties are better positioned, to be used as rental properties. The rents are also higher for properties for high sell price if they have the right rental traits.