Sometimes real estate owners may want to convert their residential real estate into commercial real estate, or vice versa. With commercial real estate in Turkey, what is meant here is the real estate that is used as the headquarters of a business or corporation. The purpose is not to purchase real estate with the intention of selling as it might come to others’ minds so that the real estate acquired under a residential contract stays residential even though it is intended for sale or investment.
How do you do this?
Real estate owners go to the transfer request to the real estate in the Turkish Registry ‘Tapu’ to convert their stores or commercial offices to residential homes or vice versa when making this decision. Although the property’s conversion is reasonably straightforward, attention should be paid to some of the problems that may cause problems to occur for the property owner in the future and generally. You must obtain a real estate evaluation.
The documents needed to transfer the type of real estate registry are:
Property title deed “Tapu” who wants to change the form in the real estate registry.
Authorization of owners inside the building itself.
A copy of a property owner’s identification card.
According to the Approved Official Department, a personal photo of the property owner or his representative.
A declaration of authorization issued by both the municipality and the state dealing with the property proves that there does not impede a change in the form of property.
Pros and cons of commercial real estate
Commercial real estate, the property owner does not have to deal substantially with expenses related to the repair and renovation or construction of the property. In many cases, he is just a tenant and can deal with the property in a manner that temporarily fits his job.
For an extended period, the commercial property’s cash flow is excellent since the contract will stretch for an extended period that will exceed six years or more. Also, the property owner is not required to deal with the tenants, especially if the investment is significant, such as building retail stores or office apartments. It’s unnecessary to solve their problems or collect rental costs because management firms also manage large real estate investments. Real estate, the task of which is to deal with all these matters without the owner’s inconvenience, except in the purchase of commercial real estate.
Investing in commercial real estate requires a considerable amount of money because it costs a lot. Sometimes tenants rent a place in challenging economic conditions to run their business, making it easier for them to leave quickly before the lease ends. This matter would leave the landlord an empty room for a long time without rent or own, thus being forced to cover the costs.
Bank loans for this form of real estate are much less than residential real estate, and thus, before thinking about this type of investment, the person who wants to purchase a commercial property must have a large amount of capital. In addition to the difficulties of finding tenants, it is one of the negative aspects of this type of real estate.
Pros and cons of residential real estate
Ease of finding a residential real estate tenant because people are still looking for a property to reside in, just as investing in residential real estate does not cost commercial real estate. Investment continues in this form because people do not tire of searching for a place where you live, and the financial flow can be a little bit comparable to commercial real estate.
You may have to work directly with the tenants and find solutions to their issues on your own if you choose to invest in the field of residential real estate. Contracting with a real estate manager may be more expensive for you than the rental fees themselves. You may face several problems, such as not paying the rent in his time and not leaving the property at the end of the lease.