Factor Rating Method
on the property purchase
EOR TURKEY PROPERTY
Every investor has own priorities on Property purchase decisions. According to some of us, location will sort all the problems today or tomorrow at the end, for some of us beachfront apartment or has wonderful night landscape view is essential and deal breaker for us; even sometimes it can be terrace for some customer time. But according to our humble experience; all the factors should be considered analitically and will be calculated on decision making process. In this reason we have evaluated our own diagram according to factors as below and we will give an example for Istanbul to explain better.
The factors that we are using for our investors in decision making step as below:
Location all of us remember from House of Card this famous quote of Francis Underwood : Power is a lot like real estate. It's all about location, location, location. The closer you are to the source, the higher your property value. Thatswhy the location fact was the prior in the history and will be prior in the future, but the point is that we need to consider the future value of the location as well, for example, there can be district of the downtown area which includes fully old buildings and in coming period there will have totally different face.( in Istanbul Fikirtepe or Taksim Areas etc), also those areas would have govermental supports and tax exemptions.
View can be very subjective point for everyone. For example in Dubai landscape view, Burj Khalifa View or Fountain View can be prior but when it’s about Istanbul of course Bosphorus View would change any game.
Finishing the quality of materials, size of the rooms, architecture, balcony and other interior factors.
Level of construction the unit can be in first stage on launching or ready to move.
Developer and brand ifthe project is under international name or high reputable local developer would definitely effect the resell, comfort and rental process.
Rental Opportunities The project has rental guarantee or not; maybe hotel pool system and own management company or just regular rental operation.
Accessibility The project has enough accessibility by roads, public transport or carpark? It might be so Central district but the homeowner might pass 1 km in 1 hour especially on the rush hours in metropolitan cities.
Unit Price here we will discuss the price per sqm according to level of project and district. The price can be fair according to high-end project in prime location but meanwhile any cheap unit price can be unfair according to those conditions.
Now we will make a case study as assuming the investor is planning to buy an apartment in Istanbul and there are 3 options that all in Europe Side.
The factors that we are using for our investors in decision making step as below:
Location all of us remember from House of Card this famous quote of Francis Underwood : Power is a lot like real estate. It's all about location, location, location. The closer you are to the source, the higher your property value. Thatswhy the location fact was the prior in the history and will be prior in the future, but the point is that we need to consider the future value of the location as well, for example, there can be district of the downtown area which includes fully old buildings and in coming period there will have totally different face.( in Istanbul Fikirtepe or Taksim Areas etc), also those areas would have govermental supports and tax exemptions.
View can be very subjective point for everyone. For example in Dubai landscape view, Burj Khalifa View or Fountain View can be prior but when it’s about Istanbul of course Bosphorus View would change any game.
Finishing the quality of materials, size of the rooms, architecture, balcony and other interior factors.
Level of construction the unit can be in first stage on launching or ready to move.
Developer and brand ifthe project is under international name or high reputable local developer would definitely effect the resell, comfort and rental process.
Rental Opportunities The project has rental guarantee or not; maybe hotel pool system and own management company or just regular rental operation.
Accessibility The project has enough accessibility by roads, public transport or carpark? It might be so Central district but the homeowner might pass 1 km in 1 hour especially on the rush hours in metropolitan cities.
Unit Price here we will discuss the price per sqm according to level of project and district. The price can be fair according to high-end project in prime location but meanwhile any cheap unit price can be unfair according to those conditions.
Now we will make a case study as assuming the investor is planning to buy an apartment in Istanbul and there are 3 options that all in Europe Side.
Project 1 : in Nisantasi, well known developer, ready to move, 1.5 km far from metro station and main road, the unit has large balcony and Bosphorus View, 125 m2, 1st class finishing, 1.600.000 usd sales price.
Project 2 : in Kağıthane, on main Street and walking distance to metro station, 50% completed construction, 3 bedroom apartment as 165 m2, mid-level finishing, $420.000 sales price with rental pool system.
Project 3 : in Taksim area, 1 km far away from Istiklal Street and metro, ready to move, 1 bedroom apartment as 53 m2, mid level finishing, $375.000 usd sales price and suitable for short term rent.
Now on the table as below, we will give a factor rates to all factors according to importance level and than we will score all those 3 projects according to their features.
Project 2 : in Kağıthane, on main Street and walking distance to metro station, 50% completed construction, 3 bedroom apartment as 165 m2, mid-level finishing, $420.000 sales price with rental pool system.
Project 3 : in Taksim area, 1 km far away from Istiklal Street and metro, ready to move, 1 bedroom apartment as 53 m2, mid level finishing, $375.000 usd sales price and suitable for short term rent.
Now on the table as below, we will give a factor rates to all factors according to importance level and than we will score all those 3 projects according to their features.
According to the calculations, we can get from the table easily the unit in Nisantası as the most efficient option although price wise it's a bit higher than average of the district. We recommend all investors to use this chart before their purchases.
Written by Mr.Ersin Oksuzoglu .Founder of EOS Turkey Property
Written by Mr.Ersin Oksuzoglu .Founder of EOS Turkey Property