Investment in Alanya real estate: resale to increase income

In the new article, we share illustrative examples of purchasing an apartment in Alanya for investment. The above cases are relevant in 2021 and therefore we provide reliable profitability figures.

Case 1 (object code on the site 01612): The average invested amount is 58,176 euros. Profitability of 38% in 17 months.

Consider buying an apartment with 1 bedroom (1 + 1) with an area of ​​60 sq.m on a new investment project near Keykubat beach in the center of Alanya. The construction of the house begins in October 2021. The price of the apartment at the time of purchase in June 2021 was €95 thousand - this is the minimum price on the price list.

About the object:

Excellent location. The complex is located just 100 meters from the sandy beaches of Keykubat and in the very center of Alanya, within walking distance of shops, restaurants, shopping centers, and everything necessary for comfortable living and recreation.

• Reliable builder. This development started its activity in Ankara in 1971 and since 1986 successfully continues to work on the Mediterranean coast, and has over 100 commissioned commercial and residential properties.
• New modern project. Comfortable layouts, modern design, and decoration of apartments. High level of heat and sound insulation. High-quality flooring materials, air conditioning systems, and sanitary ware are used in bathrooms.
• Favorable price and terms of purchase. At the "pencil" stage, we offer a minimum price and 0% installment payment until the end of construction. The sooner you invest, the greater your profit!
• Profitable investment. You get a guaranteed increase in the apartment's price because of the stages of construction. A good forecast for the profitability of renting apartments. The city center is always in demand among vacationers; the complex has an ideal location, as well as a convenient internal and external infrastructure.
• The limited number of apartments. There are 28 apartments and right now you can choose the best apartment, with the best view, the number of floors that suit you, and you make your own adjustments to the decoration of the apartment. The project deserves the attention of both investors and those wishing to purchase apartments for personal residence.
• Clean finish. And of course, this is a fine finish with a modern design, equipped bathrooms, and kitchens with built-in cabinet furniture.

According to the plan, the project will be commissioned in December 2022. When buying at an early stage of construction, the price of a finished apartment will increase by 30-40%. If the purpose of the purchase is to make money on resale, then you should wait until the end of construction and sell the apartment in the rented house when all the apartments are already sold out. There are no risks of such an investment in Turkey since our Hayat Estate agency knows all developers in Alanya, we cooperate only with proven and with a long-term reputation, who are guaranteed to put their project into operation within the stated time.

Considering the 0% installment from the developer with a down payment of 30% and a booking amount of 2000 euros, the payment schedule is:

• June 2021–EUR 2,000 (booking) + EUR 28,000 (30% down payment) = EUR 30,000
• July 2021–9,000 euros
• October 2021 – 9,000 euros
• January 2022 – 9,000 euros
• April 2022 – 9,000 euros
• July 2022–9,000 euros
• October 2022 – 9,000 euros
• December 2022 (after putting the complex into operation) - 11,000 euros.

The investor plans to sell the apartment in November-December 2022 and pays 11,000 euros already from the proceeds. The estimated sale price will be €135,000, and the net profit is 40,000 - 6,750 (this is 5% - agency commission for the sale of an apartment) - €11,000 = €22,250.

The average nested amount for 17 months of construction = € 399,000 (i.e. 30.000 + 39.000 + 39.000 + 39.000 + 48.000 + 48.000 + 48.000 + 59.000 + 59.000 + 59.000 + 68.000 + 68.000 + 68.000 + 77.000 + 77.000 + 77.000 + 86.000) / 17 months = 58,176 euros. Thus, the profitability will be €22,250/€58,176 = 38% for 17 months or 26% per year.

Purchase price of an apartment	95 000 euro
Deposit	2 000 euro
Down payment 30%	28 000 euro
Total invested	30 000+54 000 = 84 000
Investment term	17-month average
invested amount over 17 months	58 176 euro
Selling price	135 000 euro
Agency Commission	6 750 euro
Net profit	22 250 euro
Profitability	26% in a year

In September 2021, the cost of apartments in this project increased, and the price of a similar 1-bedroom apartment was 125,000 euros. The investor has already earned 30,000 euros in 3 months from purchase of the property.

This suggests that the earlier you invest in construction, the more you can earn. Who bought an apartment at starting prices, he has already earned on the increase in prices from the construction stages and receives the maximum profitability.

Case 2 (object code on the site 01512): The average invested amount is 25,500 euros. Profitability of 58% in 24 months.

The construction of an exclusive project from a leading developer in the Avsallar area will begin in October 2021, and before the start of construction, it is the most profitable investment since, at the end of each construction stage, prices in the price list are expected to increase by +5...10%.

Success factors when investing in this residential complex:

• Favorable location. The modern complex is in the picturesque area of ​​Alanya - Avsallar, surrounded by coniferous forests. Located 0.9 km from the beach, which will be reached by a free shuttle for residents of the complex.
• Purchase at the lowest price. At the “pencil” stage, prices for apartments are minimal. After the delivery of the property, the property can be sold for 25% -30% more than the original cost.
• Investment in the new building. The earlier you invest, the greater the profit will be. After the completion of each stage of construction, prices are expected to increase by +5...+10%.

Consider purchasing an apartment 1+1 No. 19 in block A worth 44,000 euros in August 2021 for a profitable resale. When buying, 46 apartments out of 180 have already been sold, 25%. The purchase price is not the lowest, but the lowest possible.

According to the plan, the complex should be put into operation in August 2023, i.e. the investor plans to wait for the completion of construction and sell his apartment when almost all the apartments in the complex are sold out.

Considering the 0% installment from the developer with a down payment of 30% and a reservation of 2000 euros, the payment schedule is:

• August 2021–EUR 2,000 (booking) + EUR 11,000 (30% down payment) = EUR 13,000
• from September 2021 to July 2023 - 3,000 euros each quarter (total 23,000 euros)
• August 2023 (after putting the complex into operation) - 8,000 euros.

The investor plans to sell the apartment after the commissioning of the residential complex. Estimated sale price will be 62,000 euros, and net profit 18,000-3100 (this is 5% - agency commission for the sale) = 14,900 euros.

Average attached amount for 24 months of construction: 13.000 + 16.000 +16.000 +16.000 + 19.000 + 19.000 +19.000 + 22.000 + 22.000 + 22.000 + 25.000 + 25.000 + 25.000 + 28.000 +28.000 +28.000 + 31.000 + 31.000 +31.000 + 34.000 + 34.000 + + 34.000 + 34.000 + 34.000 + 37.000 +37.000 = 612.000 / 24 months = 25,500 euros. Thus, the profitability was 14,900/25,500 = 58% for 24 months (29% per year).

Purchase price of an apartment	44 000 euro
Deposit	2 000 euro
Down payment 30%	11 000 euro
Total invested	44 000 euro
Investment term	24 months
invested amount over 24 months	25 500 euro
Selling price	62 000 euro
Agency Commission	3 100 euro
Net profit	14 900 euro
Profitability	58%

Case 3 (object code on the site 00952): The average invested amount is 23,611 euros. Profitability 126% for 1.5 years.

The construction of a new investment project will begin in December 2021.

About the project:

The favorable location of the complex on the main street of the Oba district in Alanya and just a 5-minute walk from the beach (345 meters) makes the project convenient for both permanent residents and renters. Oba has located just 4 km from the center of Alanya.
Because of the lack of vacant land plots for development in the Oba area, there are practically no new residential complexes. It is this feature that makes this project unique.
A profitable investment: a guaranteed increase in the apartment's price, because of the initial stage of construction, and in the future - the possibility of reselling the apartment with a price increase of 25-30%.

In August 2021, an apartment 1 + 1 was purchased at a minimum price of 89,000 euros on the price list, with an area of ​​67 sq.m.

The project will be commissioned in May 2023. The investor plans to wait for the completion of construction and sell the apartment when all other apartments in the house are sold out. At the time of sale, the estimated cost will be 125,000 euros.

Considering the 0% installment from the developer with a down payment of 30% and a reservation of 2000 euros, the payment schedule is:

• August 2021–EUR 2,000 (booking) + EUR 28,000 (30% down payment) = EUR 30,000
• from November 2021 to February 2023 - 6,000 euros each quarter (6 payments, 36,000 euros)
• May 2023 (after putting the complex into operation)–23,000 euros

After the sale, the net profit will be 36,000 - 6250 (this is 5% agency commission for the sale) = 29,750 euros.

The average nested amount for 18 months of construction: 30.000 + 36.000 + 36.000 + 36.000 + 42.000 + 42.000 + 42.000 + 48.000 + 48.000 + 48.000 + 54.000 + 54.000 + 54.000 + 60.000 + 60.000 + 60.000 + 66.000 + 66.000 = 882 000/18 = 49 000 euros. Thus, the profitability will be 29,750/49,000 = 60% for 18 months (or 40% per year).

Purchase price of an apartment	89 000 euro
Deposit	2 000 euro
Down payment 30%	28 000 euro
Total invested	89 000 euro
Investment term	18 months
Average invested amount over 18 months	49 000 euro
Selling price	125 000 euro
Agency Commission	6 250 euro
Net profit	29 750 euro
Profitability	40% за in a year

Summary:

In Turkey, the start of sales of apartments in a residential complex that exists only at the stage of the projector excavation is a normal practice. Experienced investors also give preference to objects under construction, because it provides maximum profitability.

Because of the favorable location of the residential complexes, the reliability of the developers, the quality of the real estate, and the innovations in construction, we recommend to the investor interested in buying an apartment for resale the most liquid projects with a profit of 25% of the original purchase price.

It makes sense to buy from a reliable developer as early as possible, at the "pencil" or foundation pit stage. Prices will be minimal and with a reliable partner, you can not worry about the risks of unfinished construction. We know 300+ developers on the coast of Turkey, we have a huge portfolio of proposals and are not committed to selling only one or two projects, as developers do, so we will select the best investment object for you with good profitability and high liquidity.