How To Choose An Income-Generating House
Sometimes you go door to door for your dream house, looking for the one you want to live in, and in the meantime, you may also have very different wishes and demands, as well. But if you want to buy a house as future-proof instead of living in it, there are many more things to consider to avoid problems because your property must meet some general criteria in order to be able to rent it out easily.
There are some ways you can follow to make this difficult choice when you are going to buy a house to put on the market as a rental. This will make your work much easier in the future. If you pay attention to some issues and pay attention to the fact that the house you choose has fulfilled some of these criteria, you can easily rent your house out. Let's take a look at what these issues are and what you should pay attention to.
Make Sure the House Is in a Reputable District
The location of the house is not so important if you are looking for a house to live in or if you are considering a house for investment in the far future. If you have enough time and financial strength to invest, a buyer for your house will surely come or you yourself can live wherever you want to live.
If you want to rent out your house, that is, to get a regular income, things change. The most important condition for a house that will never be empty and where you can find permanent tenants is location. The fact that the interior of the house is beautiful and many other factors that we will mention shortly affect the price of the house and its desirability, but a house in a reputable district will definitely attract tenants more. Because the neighborhood is the most prominent thing for many people, who look for a certain level of decency and high living standards in the place they live may prefer a house in a reputable district despite its shortcomings.
If you want your house to be rented for a long period of time and find a new one easily when you have a problem with the current tenant, make sure to buy your house from a location we have described above. A house in a reputable district will be the highest criterion for its preference by those who are willing to pay more rent for the sake of a good neighborhood.
Land and Deed Control
Check the title deed and the land where the house is located. You should definitely find out the answers to the questions such as whether the title deed of the house is a condominium or condominium servitude. Even if you are not going to be able to deal with this investment individually, this is a must point that you, in person, should definitely pay attention to. Do not jump in and do not rush things thinking that you have found a good opportunity. Do the deed check-up thoroughly.
Make Sure That the Maintenance Fee Worth It
Since you will not be living in the house and considering renting it out, the amount of the maintenance fee may not be of interest to you individually, but not everyone wants to live in a place where there are higher maintenance fees than the worth of that project. Even if the rent is affordable, you may lose potential tenants who find the building’s or complex’s dues too high or higher than they should be when considering the value of the property and its location. Or your potential tenants may ask you to lower the rent a little more because of the dues.
Make sure you buy your income-generating house in a building or complex where the fees are fit for the scale of the project so that you won't have to lower the amount of the rent price to avoid being stuck in such situations. Or the fee must have a basis, even if it is higher than the average, there must be reasons like solid services given to the residents that increase the chance for the house’s being preferred. So pay attention to whether it has something extra to offer, such as 7/24 security or concierge services.
See How Long it Takes You to Value the Home
Turkey is a country where especially real estate values can change very frequently. Buying a house at the right time can take you to an incredibly profitable spot, and such things may not be noticed for a long time. But still, with an average annual value increase calculation, see how long it will take to recover the amount you would have paid for the house. If this is more than 10 years, it might be helpful to think again… Nobody wants to make a loss while investing in order to earn a regular income.
You can predict how much the value of the house will increase on average by looking at previous years, and you can examine a long-range by talking to banks and experts. Do not buy any house until you are sure that the house you want to buy will bring good rent, and that the rent that will profit you is affordable for your potential tenants. In such cases, it may be better for you to make different investments. To be able to do this, you should definitely contact your real estate agent and ask them to present the best potential result for you.
Try to Be Involved in Projects at the Pre-Launch Phase
Getting into projects in the pre-launch phase is pretty risky. You can't be sure when or how things will work out, and anything, especially unwanted scenarios, can be unfolded at any time. However, as the notorious saying goes “higher the risks, higher the profit”, it can still be very profitable to enter a residential project that is still at the pre-launch stage, if only with a condition that you have researched thoroughly. Because if the project ends as promised, it will earn you much more than what you invested. In such a scenario, you can either rent out or even sell it and generate an income in a shorter period of time.
Always Go For the Brand-New Properties, Always
Recently, especially in historic cities such as Istanbul, some of the houses could be old and worn out. Due to the internal structure of these houses and the insecurity led by the risk of an earthquake, many people may be looking for a new house. For this reason, try to choose the house, which you will buy for renting, among the newly built ones.
The recently built houses are safer since they are built according to the modernized building regulations comparing the older ones built by previous construction codes that could have some loopholes, which may worry the potential buyers or tenants when they approach your property. So when it is one of the recently built ones, you will not have to worry about such conditions as natural disasters, fire, or security since they are built with a safer set of codes, and the chances of the resale or finding tenants would be much higher in contrast to the second-hand properties.
Get Things Repaired That Will Cause Problems in The Long Term
Naturally, when there is a problem with the house itself, the tenants expect the landlord to solve it or cover it financially. When you don't want to live in the house you bought, you may have to deal with something all the time while someone else is living in your house. When you have to constantly have things that are broken, damaged, or worn out, you will either have extra costs or your rent will be incomplete when the people living in your house have them repaired for you.
Even if you won't be an occupant, check the interior of the house as if you were going to live to ensure that your tenant is satisfied and that the house does not cause you problems. Thus, you will not tire yourself out with unexpected expenses and effort.
If you need something extra to please the tenant, don't hesitate to get it done after you buy the house. It could also be anything that will help you increase the price you're asking from this tenant. For example, having the house whitewashed, and choosing pleasant and harmonious colors will make the house look clean and increase its appeal. Do not ignore such things by thinking that the tenant can do what they want, you can make the house look more attractive and demand more rent!
Don't Limit Yourself to only the House option!
We have told you what you need to pay attention to for a house you want to rent out, but another solution with regular and continuous rental income is shops or other places that can be used commercially. Areas that can be used for business and commercial use are also places that are always needed, depending on the location.
So if you want to earn a regular rental income, it is also a sensible idea to buy a place that can be used as a shop or for commercial purposes in a nice location. At the end of the day, buying and renting out offices, stores and warehouses will also be a regular source of income. You can also add a new idea to your income model by doing some research on this subject.
If you want to invest in Turkey, it is very important to have the assistance you trust. Propline is an international proptech company that facilitates investment processes for investors by combining conventional ways with technology and helps the investors manage and maintain their property with its exclusive concierge services that are presented to the clients in the post-purchase period.
As Propline, we are here to answer all your questions about real estate and citizenship and to guide you through your investment journey. Propline's priority is always your needs. Let's find the most suitable one for you and walk on that path together!