There are a lot of important factors while determining the market value of any house in Turkey. According to the property experts, there are two main methods to calculate the real value of houses.
The first method is looking to the monthly rental amount, on the other hand, the second method is comparing house with the houses in same location.
Determination of Value According to Monthly Rental Price
The value of the house according to the rental rate is the simplest but most realistic method while determining the real price of any property in many locations of the world. The price of any house is calculated as the present value of the money that the asset will earn to its owner in the coming years. If we take the rent of the house as the money that the owner brings, we can use the total rent amount to be taken in the following years using certain factors and the value of the house as a determining factor. To put it simply, the value of a house with a high rent value is higher, and the value of a house with a lower rent must also be lower.
In Turkey, the average cost of monthly rent is calculated with the value of rent for 214 months. Also, the average of the multipliers 212 months in Istanbul. The story that these figures tell us is that if you see the house as an investment, it will be about 18 years for you to return the money. Of course, as we are a country with high inflation rates, there will also be a rent increase, but the rent increase is not a significant factor for this calculation method.
One thing to be aware of here is that these multipliers can be significantly increased in very high value houses, so the return period of the investment can be extended. Especially when the value is found in millions of rental multipliers can go up to 30 or 40 years.
Generally accepted periods are 14-16 years for work places and 17-20 years for residences. In this case, it can be assumed that the average rent rate of 214 months gives the price of the house. For example, suppose that you want to buy or rent an equivalent of 1,500 TL. In this case, we can calculate the market value of the house as 321.000 TL (214 * 1.500 TL).
Determining Prices Compared to Houses of the Same Location
This method is usually the most commonly used method, but it is not enough alone.
The location of a house is the most important factor determining its price. Not only the district, but the neighborhood, even the house street can lead to quite significant differences. It is very important that you compare the prices of other houses in the same or similar position as the house you want to buy in the estate sites and compare them with the home. In this way, you determine the average prices of their counterparts. For this method to be healthy, the houses you compare should be close to the house you want to buy.
The features listed below are features that add value to the houses in general. When comparing, you should check whether these features are in your home and in the home you are comparing.
- Central location
- Rich in transportation facilities
- Having a new building
- The apartment has a light area (south)
- The apartment is located in the front
- The apartment is located on the intermediate floor (roof, top floor, basement, or 1st floor outside)
- The presence of an elevator in the building
- Have a view or open front
- Having common areas (Gym, social facility etc.)