500.000-USD Bank Deposit or 400.000-USD Property Purchase for Turkish Citizenship
- December 30, 2019
- Posted by: admin
- Category: Blog
500.000-USD Bank Deposit or 400.000-USD Property Purchase for Turkish Citizenship
In this post we will focus on comparison of 500.000-USD Bank Deposit or 400.000-USD Property Purchase for Turkish Citizenship.
As it is well known, after the new law enacted on 18.09.2018 the conditions of Turkish Citizenship by investment lowered. Under the new law there are 5 methods to obtain Turkish Citizenship by investment.
- Fixed capital investment of USD 500,000 or equivalent foreign currency or Turkish lira, as attested by the Ministry of Industry and Technology
- Purchasing a property worth a minimum of USD 400,000
- Creating jobs for at least 50 people in Turkey
- Depositing at least USD 500,000 or equivalent foreign currency or Turkish lira in banks operating in Turkey
- Buying at least USD 500,000 or equivalent foreign currency or Turkish lira worth of government bonds
- Buying at least USD 500,000 or equivalent foreign currency or Turkish lira worth of real estate investment fund
Pros and Cons of 2 Options
You may find more updated information about Turkish Citizenhip Programs on our relevant service page. In this post we will focus on 500.000-USD Bank Deposit or 400.000-USD Property Purchase for Turkish Citizenship.
Among the above options, number 2 and number 4 are by far more popular compared to other options. These are purchasing a property with the value of 400.000-USD and number depositing 500.000-USD. Equivalent foreign currency or Turkish liras are possible as well.
The main reason behind this choice for the Turkish Citizenship applications for investments is probably the forecast of the investors for their ROI (return of investment).
The other important motivation for purchasing 400.000-USD for Turkish Citizenship is relocating Turkey and living in the purchased house.
Additionally, the real estate project developers and real estate agents in Turkey advertise this option. Suc advertisement ismuch more compared to the other options of the Turkish Citizenship by investment.
“What the rental income will be if I purchase a property with the 400.000USD for Turkish Citizenship”. This is one of the most frequently asked questions of the potential Turkish Citizenship by investment clients . It is not easy to answer this question, since there are lots of parameters affecting the rental value of the property.
The Preferences of Investor for Turkish Citizenship
Some of investors wish to relocate to Turkey after Turkish Citizenship applications. On the other hand, some others continue to live in his or her own country. In the latter case, the property purchase for Turkish Citizenship is only for investment purpose. Most probably, the investor will rent the property out. In that scenario the rent multiplier plays more important role on the choice of investment.
However, on the other hand investor some investors may prefer to move Turkey. It can be sometimes with personal or business reasons. Can be alone of with family. If this is the case, choosing property purchase will be more meaningful.
Methods to Compare 500.000-USD Bank Deposit or 400.000-USD Property Purchase for Turkish Citizenship
You shall discover that your real estate investment in Turkey for citizenship profitable or not. As other countries the main tool you can use is “rental multiplier”.
If you divide the money you pay to buy the property into the gross monthly rental income of the property, the number you get is the monthly rental multiplier for that property.
For example, if you rent a real estate that you have bought for 300.00-USD to 1,000.000-USD, the rental multiplier for this case will be 300.
Today, the monthly rental multiplier in Istanbul varies between 200 and 300. In luxury residences the multiplier exceeds 300. Therefore, the investor wishes to purchase a property in Turkey for citizenship may reference this rental multiplier.
On the other hand, for the other popular method which is 500.000-USD or equivalent bank deposit for Turkish citizenship the factor for ROI is the interest rate. The interest rate for TL is quite high in Turkey currently it is approximately 14-15%, however for the USD and EUR it is approx. %2-3. Also the advantage for bank deposit for Turkish citizenship is, you do not have to find a tenant for your revenue and you do not need to find a buyer after third year.
Consequently, both 500.000-USD Bank Deposit or 400.000-USD Property Purchase for Turkish Citizenship have advantages. We will be happy to assist our valuable clients for their decision process.