Benefits Of Buying Istanbul Property

Istanbul Real Estate (Property) For Sale

By in Istanbul Real Estate with 0 Comments

Depending on the real estate market changes in recent years. There are many advantages and disadvantages that a buyer can achieve from buying a property. In order to invest and achieve a material or beneficial profit return. In this article, we review several points of benefits for real estate buyers in general and in particular in Turkey

I watched several of your YouTube videos and was very impressed, and also noticed you have a good viewership. You do not just offer valuable insights on citizenship programs. There is also a lot of other great information for expats and investors alike. What are some of the more popular subjects you have covered?

'Most people come to me to save money on taxes. We live in such an interconnected world that an entire new generation of online business owners and consultants no longer need to pay taxes where they're from. I reduced my tax rates from about 43% to below 1% by following the advice I offer to others. Stuff like passports and bank accounts are just part of what's required to reduce taxes in a legal way, and people get a lot of diversification benefits from like holding other currencies and asset protection. Once you have your tax and lifestyle plan in place, you can take the money you save and invest it in high-yielding properties. Some of my clients will easily save $250,000 in taxes this year (or even in a few months) and will look at how to earn 10% returns in Istanbul and get a passport for free. It becomes a compounding benefit.

In general, could you explain the essence of the real estate to citizenship program in Turkey, both currently and in the past?

In early 2017, Turkey introduced its own citizenship by investment program. Like any such program, you make an investment and almost immediately get citizenship in a commoditized way; everyone except Armenian citizens qualifies.

Real estate in Istanbul was one of four options, but is by far the easiest and made the most financial sense. Originally, the required real estate investment was $1 million, based on the value on the day of purchase. However, the government's high hopes for renewed foreign investment never materialized, and after months of rumors, the minimum investment was finally reduced to $ 250,000. The large decline in the lira make valuations a bit tricky, but working with a professional should smooth things out.

Second Citizenship Explained

What countries do you think will benefit most or make use of the program most, and why?

Most of my clients seeking a second citizenship are Americans looking for a Plan, including the ability to renounce US citizenship and avoid the huge tax consequences of being a US citizen. Going from being a US citizen only to being a Turkish citizen only is not very appealing, but it may be appealing as part of a passport portfolio wherein you hold a western-friendly passport along with a Turkish passport. However, I imagine the largest clientele will be Chinese and Arab investors who see the low level of investment needed to get not only a Plan, but visa-free travel to such hard-to-get countries such as Thailand, South Africa, Morocco, and Middle Eastern frontiers like Iraq.

This program was designed for and by developers with excess inventory. Their goal is to bring back the European and, primarily, Middle Eastern investors who fled in recent years over concerns with security and the lira.

Clearing out that glut in the construction market could help developers sell their inventory and keep hiring for new projects. It's worked in countries like Portugal, where a 'Golden Visa residence permit helped turn the real estate market around from the doldrums of 2009. We will see how valuable a Turkish passport is perceived as.

What benefits do you feel it would offer for European/Western buyers of property in Istanbul? I can think of one example: Many Europeans live year-round in Turkey, especially in the coastal areas. Some have residence permits, but they are temporary. Others, have to navigate the tourist visa route, which poses challenges.

I have a residence permit in Montenegro on the basis of owning property. It will never entitled to citizenship, and I can renew it every year. I do not see that as a huge burden, providing they do not enter the European Union and increase the standards to qualify for renewal. The same feelings are likely held by the Brits, Germans, and others living in Turkey; I do not hear from many Europeans about the need for a second passport in a country.

If anything, some Europeans would likely prefer to NOT be Turkish if they are living there. I think holding citizenship may actually be better if you DO NOT live there, since residence permits can generally be renewed as long as you own property. I can see some Americans buying property to get another passport, but many Europeans will be cautious, I think. If you are Danish and are not paying tax there, your perceived need for a Plan but it is probably low especially since citizenship puts you on the radar.

Turkey is unique in that it is the only substantial country offering citizenship by investment, but whose passport does not afford visa-free travel to Europe's Schengen Area or the United Kingdom. As such, it's hard to compare it as an actual passport. How is compares about as a citizenship is interesting. On the plus side, you have a substantial country with a lot of bargaining power. On the minus side, you have a substantial country that has more power to do stuff to you than a tiny Caribbean island you can buy citizenship in. What I like about Turkey, however, is that you can buy any real estate, which means you can actually make a good investment. In most other programs, real estate is approved, which means it's generally overpriced and more to live in than for investment. Turkish citizenship could turn into a profitable endeavor for those working with professionals.

I have spent years looking to go where I'm treated best. After selling my businesses in the United States, I spent time in nearly 90 countries seeking opportunities for banking, tax reduction, immigration, and investments. I was doing this stuff by myself and blogging about it, and then people started asking for my help I've always been fascinated by Turkey ever since visiting for the first time in 2011, and I find this new opportunity very interesting.

What do you envisage for the future of Turkey's program? More changes or a loosening?

While there has been a Caribbean citizenship price war in the last year, I think most countries - especially a larger one like Turkey - isn't going to constantly tweak. Honestly, you can debate about WHETHER you want a Turkish passport, but I think that if you decide that you do, this offer is rather attractive.

I wouldn't foresee any further reductions, particularly as the $250,000 minimum is less than the originally proposed $300,000. That shows to me that the government is being aggressive to court investment, and if anything changes, I would suggest it would be some consulting firm convincing them to tack on a hefty application fee.

I think there is always the potential for good deals and bad deals. Too many people who have come to Turkey have paid the foreigner premium for properties in dubious suburbs. The Turkish real estate market has so many players that it's easy to get confused. If you have a focused plan and stick to it, I think that Turkey has a lot of benefits: a young, growing population, and a greater position in the world in terms of exports. Of course, there are a lot of questions about the economy right now, but I like to buy uncertainty and hold for the long-term. I think Istanbul offers a very unique offer; not many cities have a growing population of 20 million people and haven't lost value in decades. Now that some prices are hovering near $1,000-per-meter, I think it's becoming attractive for a long-term hold.

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About The Author
keith-boyle

About Us: My Bricks is a unique real estate company in Istanbul. With over a dozen years of experience in downtown Istanbul, Keith has been involved in countless transactions. He tirelessly researches for the best opportunities for his valued clients. In addition, Keith has project managed over 50 renovation/restoration projects (see Keith in action on YouTube: https://www.youtube.com/watch?v=yLaLIjo9X-A&pbjreload=101). We source all kinds of properties, from budget properties up to luxury villas on the Bosporus. We give personal service to our clients; often doing zoom and WhatsApp sessions 1-1 and also webinars where clients can benefit from the wisdom of Keith’s other clients. In these webinars issues such as taxes, legal issues, design and renovation and identification of property opportunities are addressed. These sessions are typically run on Saturdays and Sundays. Come and join us; just contact Keith for details on: WhatsApp/telegram at +90 531 582 3876). Our living and breathing passion is real estate in the downtown area. We look forward to virtual sessions where you walk side by side with us along the streets or in real life when you arrive in Istanbul. We are fully equipped to help you with any logistic matters you may require, from obtaining citizenship through investment to managing your assets professionally here in Istanbul. At this point in time, the agency is transforming and we have investment coming in. It is an exciting time to purchase in Istanbul. I look forward to doing the ground-work for you and launching you on your way to a profitable and enjoyable investment. Kind regards, Keith Boyle

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