Getting Turkish citizenship through real estate investment is a great choice, but it’s easy to make costly mistakes. Here are eight unexpected Turkish citizenship by investment mistakes to avoid.
1. Buying real estate that is not yet built
Türkiye’s notorious inflation over recent years has made construction budgeting tricky. Many off-plan projects have gone beyond their budgets and timelines for completion because material and labor costs increase unpredictably. Some developers solve this by cutting corners which can result in unfulfilled promises or safety concerns. We’re not saying don’t do it, but be very much aware of the risks. Many foreign investors got burned, and typically the agents that sold them these new buildings disappear when things turn sour. They made their high commission already.
2. Thinking you should buy only one property to reach the $400k threshold
You can buy multiple properties across multiple cities to satisfy the investment minimum. While buying one property may seem easier, the liquidity and rental yields at higher price points decrease significantly. Buying 2-3 apartments from the secondary market offers the best yields and prospects for a healthy exit down the road. Many agents and agencies in Turkey will try to convince you that you must buy a single property only. Why? Because they are pushing a few specific projects with large commissions.
My Istanbul and Izmir real estate buyer’s agent Keith (pictured with me below) helped me personally find three lovely second-hand investment properties.
3. Buying real estate that is too old
You may see great deals in prime neighborhoods of Istanbul, but that is often because the properties are built prior to recent seismic standards. Even if an earthquake doesn’t strike, the government can deem them unlivable and subject to rebuild, leaving your investment in limbo for at least three years.
4. Using a predatory agency
Many real estate agencies in Türkiye will advertise impossibly high yields for new-build, luxury developments and mislead clients about the eligibility of cheaper, second-hand apartments. It is also common to see properties overpriced by huge margins so that they conveniently satisfy the $400,000 requirement, not to mention the gouging in legal services and property evaluation fees.
5. Thinking renovation costs can satisfy the investment minimum
Money spent on renovating your properties will not count towards the investment minimum. Only the property value expressed on the evaluation at the time of purchase will count.
6. Planning to do Airbnb or short-term rentals
Doing Airbnb means getting a license from the municipality, which requires the signed approval from all occupants of your building. This is not something your Turkish neighbors will happily agree to. It is best to make investment considerations based on long-term rental income, as getting the license is by no means guaranteed.
7. Inadequately screening your tenants
You should carefully evaluate any tenant you rent your properties to as it is not easy to evict people in Türkiye. Working with a property management agency that understands how to profile tenants is crucial to avoid delinquency on payments or disagreements about when the property will be vacated in the future.
8. Waiting too long to buy your real estate
Citizenship by investment programs undergo regular price increases and can be discontinued at any moment. You do not want to buy one property, then have the investment threshold increase before you can complete your purchases and apply for citizenship. It is only a matter of time before the Turkish CBI becomes more expensive or disappears altogether.
Conclusion
Turkey’s CBI program is among the most compelling programs out there and if structured correctly, you can sufficiently manage your risks. The eight pitfalls listed above can be easily avoided; don’t let such mistakes add unnecessary trouble to your CBI experience. Get in touch with my trusted agent Keith now—he’ll guide you to practical properties that suit both lifestyle and investment needs for your particular citizenship by investment case.
Contact my buyer’s agent Keith for guidance on selecting CBI-eligible investment properties in Istanbul and Izmir
Articles on Turkey:
- Making a real estate investment in Izmir? A value play within Turkey
- My Apartment Renovation in Istanbul – Case Study with numbers
- Why is the Turkish Citizenship by Investment Program misunderstood?
- Making a Real Estate Investment in Istanbul, Turkey – Overview and what to watch out for
- I bought an apartment in Istanbul
- How to buy Real Estate in Istanbul for the Turkish Passport
- Buying Izmir real estate for the Turkish citizenship by investment
- Net real estate rental yields and cap rates in Istanbul, a case study
- Turkey Citizenship by Investment – Timelines, Fees, and Traps to Avoid
Available services in Turkey:
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