How to Calculate Return on Investment in Turkey? | STRAIGHT TALK EP. 18

[@abdulali9426]

Mr. Cameron always quotes minimum 5% rental yield in Istanbul. So, I did a small excercise for completed projects, I checked apartments' selling price on Sahibinden and hurriyet emlak and monthly rent of the same apartments, I could not find a single apartment (building life 0 to 5 years) anywhere in Istanbul with 5% rental yield. the maximum I found was 3.5% and in rare cases 4%. Mostly the rental yield is 2.5% to 3%, and this also is pretax, after tax will be even lower.

[@khaleefax9553]

*There are a couple of other things that threw this entire presentation off base.* *First, a whopping 15% annual rent increase is quite unrealistic. 3% is average and 5% is butchery that makes your tenants to start thinking to move somewhere else.* *Second, he is talking about ROI which is a gross amount. There must be quite a few hidden costs and investment of one's time. If you take that into account, it will crush the numbers.* *And finally, for which I don't personally blame him, this presentation is only a couple of months old and his projected devaluation of 7.48 lira (after the first year) has already been surpassed. Today, only a couple of months from the video, the Lira already stands at 7.90 against the dollar.*

[@TimFuzail]

But its a pandemic right now? Demand is far lower than regular?

[@mohamedismail673]

legendry explained👌

[@user-ov2tm2un1r]

Appreciate it, Mohamed!

[@ragabnh]

Good info, thank you, similar logic applies to US Real Estate Market. I have some inquiries: What about taxes on rental income in Turkey? What percentage of rental income does a property management company charge, and Does your firm offer such service? Any maintenance and repair cost expected at time of selling the property? How much listing and selling a property at Realty cost in general?

[@user-ov2tm2un1r]

We will try and address your questions in an upcoming episode Nehro, stay tuned.

[@omarkholandi11]

Good video however, ONE month later from your broadcasting it seems the Turkish lira is going down sharply !!!!! Today Aug 15 2020 = 1 USD equals 7.37 Turkish lira ??? where is the calculation of my investment with expenditure? Maintenance, land and building taxes, condo fees, and other fees? Additionally you are assuming the RE price is going up - what will happen if it goes the other way ? way down? etc

[@naveedchohan3190]

Nice point ... I'm waiting for this answer too

[@zainabhashimi]

Thank you very much for this video. For some reasons, I believe it was made based on my request (lol). Maybe it was not, but I would like to take credit anyway 😁. - a happy customer of PT

[@user-ov2tm2un1r]

zainabhashimi Well, It is true that we made on a request of our client. But Mr. Deggin knows who that client is. I(Alaattin) have no idea 😀

[@zainabhashimi]

@@user-ov2tm2un1r well, as I said, I would really like to take the credit. Haha :D All the best with everything you do. Zainab

[@amberspatarabox1356]

Laughing all the way to the bank 😄👍

[@AliKhan-tc1lh]

How is the turkish property situation with the present devaluation of lira and political instability surrounding turkey ?

[@Noah-gl5fn]

On paper it looks good but let’s be realistic, the real question would be why the tenant wouldn’t want to look for more affordable housing. There should be some kinda regulation on how much a landlord can increase per annum. It wouldn’t surprise me if the government don’t introduce a clause where it caps and limits the CPI on rental contract. That inclination of rental’s may result housing crisis in the country,Wouldn’t it!!?

[@xsal6107]

I love your videos very informative thank you

[@user-ov2tm2un1r]

So nice of you😊

[@naveedchohan3190]

What about 10 present depreciation per annum in Turkish lira ??? Is it means we are looser after three years by 30 present ????

[@user-ov2tm2un1r]

No Naveed it doesn't mean that. There's also inflation in Turkey which is also around 12-13% per year. So when you factor in the general inflation and the specific value growth of your investment, you will make money, not lose.

[@naveedchohan3190]

Cameron I think you miss to deduct tax on rent per month on 6% rent ...

[@janabhyd1456]

Greetings, from quite some time I am watching your videos, particularly your straight talk. Talk of Mr. Cameron is quite informative and sounds very convincing. However my general observation is that you mostly cater to high end luxury segment. It will be better some of the talks also cover other segments too.

[@user-ov2tm2un1r]

Thanks for the feedback. However we do cover other segments as well. If you haven't found enough info about the segment you are looking for in our videos, you might as well read our blogs at www.propertyturkey.com

[@amberspatarabox1356]

He has an aura about him 😊 he adds a human touch to money making which is a rare find , making it so accessible two thumbs up 😊😇

[@amberspatarabox1356]

I have a question is there a chance that 2018 devaluation going to come back (God forbid) again, in a massive fashion?

[@user-ov2tm2un1r]

Ambers PataraBox Well as a company policy we don’t like to speculate. Turkey has a rather fragile and flexible economy. It can break up easily and can bounce back very speedily.

[@amberspatarabox1356]

@@user-ov2tm2un1r true that:) I wish it goes up and up,right after I buy property here 🙈🙈🙈🙈🙊🙊🙊😊☺

[@adnansabanovic2735]

I love your channel. Just discovered it today. Looking at your website, It seems that you are only working with new apartments. You are not listing used apartments, am I right? How difficult is to sell these apartments later after owning them for a couple of years ? Reason could be that I want to get a bigger one for example.

[@user-ov2tm2un1r]

Adnan Sabanovic Hey thanks for reaching out. It seems that you have a lot of questions and comment section is not the place to start this conversation. Please send us an inquiry at the whatsapp number in the description box below the video so that we can attain you an investment consultant who can identify your specific needs.

[@sbludba]

Alladin why not just use the bank that gives 15% per annum for term deposit.?

[@jsbnhhe4100]

What about the rental revenue from year 1 to year 5? Are those tax free? I believe not (and I am not specialist in Turkish taxes) if the answer is yes the demonstration is correct (provided that the depreciation of the TL of 10% per annum is accurate which whatever we say will always remain a question mark) if the answer is no then it will be less than 51% ROI.

[@user-ov2tm2un1r]

The rental income in Turkey is taxable by law. However in practise, it is not taxed.

[@rameezmehar5740]

@@user-ov2tm2un1r hi thank you for such informative video. can you clarify whether there is any provision of tax deduction at source if rental income is more than certain threshold?

[@orhanturkoglu1982]

First view and first comment thats me 🤣🤣

[@user-ov2tm2un1r]

🥳

[@HusseinAl]

Hello gentlemen, I have watched a few videos of yours and I have a few questions for you. What exactly your business is? Are you 100% real estate agents or do you have any interest in the building companies? Do you charge the buyers for your services or strictly from the seller? Do you work as dual agent for the seller and buyer or you only represent the buyer? Is it fair to assume you work for the interest of your clients who are the buyers? I know someone already asked the same question, but I am more interested in properties that have low monthly fees. I am Canadian citizen and thinking to get Turkish citizenship through purshasing residential properties one of which I may live in. I was told that the Turkish government assess the value of the purchased properties using their own criteria which the total value can be less or more what the investor paid for. If that's the case, will obtain appraisal from the government office prior to making an offer to purchase? I know too many questions, but I hope you are able to answer them so others can benefit from as well. Thanks, Hussein

[@user-ov2tm2un1r]

Hussein Al Thanks for the feedback. These questions are indeed happened to be the topic of our next video. Kindly stay tuned for that episode. And also It seems that you have a specific case that one of our investment consultants should deal with. Please send us an inquiry at www.propertyturkey.com or through whatsapp at wa.me/905312732069

[@HusseinAl]

Thanks,

[@haramainlandscape9705]

During the 5 years, there is no expenditure? Maintenance, land and building taxes, and other fees? The video assumed that the Turkish Lira will be constantly depreciated against US dollars.

[@deggincameron5597]

Hey Haramain We kept the calculations simple and easy to understand. We did not include ongoing expenses etc. Yes, there are some expenses, however, these are not significant enough to skew the figures too much. We do expect the Turkish Lira to continue depreciating against hard currencies over the forthcoming 2-3 years, yes. I think it's a safer assumption to make, certainly more prudent.

[@boob3239]

@@deggincameron5597. Hello Mr. Cameron. I'm watched almost all your vedios. I need to find good commercial real Estate in Istanbul to buy my Budget 300 k. Could you help me to find good investment with actual amount. I'm planing to come soon to istanbul.

[@user-ov2tm2un1r]

boob 323 Kindly send us an inquiry at www.propertyturkey.com or send us a message at whatsapp wa.me/905312732069

[@xsal6107]

I am interested investing in the Doesmolati Turkey area what is your advise?

[@user-ov2tm2un1r]

Batula Salim Thanks for reaching out. If you could send us an inquiry through our website or through the whatsapp number at the link in the description box we’d happily get into contact with you.

[@Demiray95m]

Lets not forget rental income tax. 35% tax per year for rental income, correct?

[@Sunny-yr2oo]

Omg 35% tax 😂😂😂😂 Thanks brother Tbilisi, Vietnam, n now resell apartments in Dubai I think is a good investment

[@moneyhunter943]

is it reuploaded? I saw this video before

[@user-ov2tm2un1r]

Yes it has been reuploaded after minor adjustments.

[@eahefnawy]

I don’t get it. You say the price of the property increases by around 15% per annum, which is almost the same as the inflation rate. So the actual value of the property pretty much stays the same (even though the number went up) and barely beating inflation.

[@user-ov2tm2un1r]

Yes. You are right. But the property appreciation rates always outperform the inflation rate so you have a 4-5% increase there in terms of hard currency. If it was a %15 annual increase in hard currency that would be too good to be true. And again we are talking about an average property. You can increase your capital appreciation by going into urban regeneration areas and buying under-construction stage and holding on to a property for at least 5 years to maximize your returns. Let me put it further into perspective: Property prices in a centrally located urban regeneration area are likely to appreciate higher than areas that have already been established and appreciated at price. So this is your first leverage. Your second leverage is buying off-plan. In other words, a property that is at an under-construction stage will provide you at least %15-30 capital gains upon completion. If you take these factors into consideration you might end up with a property that can actually make you money.

[@eahefnawy]

@@user-ov2tm2un1r Understand. Thanks for the thorough explanation

[@h1239]

Do you respond to emails? Seems not.

[@user-ov2tm2un1r]

Have you left an inquiry on the website?

[@yami8842]

Hello, can you help me make a promotional video?

[@Sir023]

Guys, been connected with your team via WhatsApp but no proper response..

[@user-ov2tm2un1r]

Syed Siraj Sorry for inconvenience. But we can not find your information on our CRM system. Could you please send a whatsapp message to the number on the video so that we can check who’s in contact with you ? Many thanks.

[@amberspatarabox1356]

Maths lessons 😃

[@amazingvideos1700]

In stock exchange you can earn 30 % per year

[@TimFuzail]

You are either dumb or naive, DO NOT EXPECT TO EARN MORE THAN 8%.

[@eplacido8721]

This year I made more than 7000% ROI on the stock market. I have pics to prove it

[@yami8842]

Hello, can you help me make a promotional video?

[@yami8842]

Hello, can you help me make a promotional video?