A property’s viability depends on what remains after acquisition, vacancy, maintenance, tax and financing—and whether you can withstand a weak year without a forced sale.
This practical assessment can be applied to an apartment in any Turkish city. It assumes neither guaranteed future price growth nor 12 months of rent always collected. Every purchase price, rent, financing figure and exchange rate in the examples is hypothetical, rather than a bank offer or a 2026 market price. Tax rules must be linked to the income year, owner’s status and activity, then checked before reaching a final conclusion.
Illustrative document signing; the photograph does not establish a valid contract or completed legal procedure.
Do you want annual income, a home to use yourself or long-term capital growth? Mixing these objectives may lead you to count personal occupation as cash rent or add expected appreciation that has not reached your account. Define the measurement currency, investment horizon and cash needs. Someone making monthly loan payments needs a cash-flow assessment; someone who may sell within two years needs an early-exit cost calculation.
Separate three results: net property operations, cash remaining after tax and instalments, and profit or loss on sale. Operations may be positive while cash flow is negative because of debt; a lira price increase may coincide with a fall in your own currency. Begin with a simple model and written assumptions, replacing each with a document or quotation. Do not give an unsupported estimate decimal precision that makes it look factual.
The purchase price is not the full capital required. Request written estimates for transaction fees, legal services, valuation, translation, commission and other applicable costs, identifying who pays each. Add repairs and fit-out before the first letting. Do not treat an advertised percentage as the total official fees: items depend on the transaction and agreement.
The reserve is money you retain, rather than a cost consumed immediately. Show it separately to avoid counting it twice when repairs occur, while recognising that you need the funds available at completion.
Use rent supported by similar properties and, where possible, verified agreements. An advertisement is a potential negotiating level rather than guaranteed income. Separate vacancy from non-payment and introductory discounts: each reduces collections for different reasons. If buying with an existing tenancy, read its rent, terms, duration and collection history instead of immediately replacing it in the model with the new rent you expect.
You can model receipts as monthly rent multiplied by equivalent months collected, with clearly stated additions or deductions. For short lets, use sold nights, achieved rates, discounts and cancellations, checking licensing first. Do not add a refundable deposit to income or treat unpaid rent as cash available for the bank. Keep records that reconcile with transfers and invoices.
Gather management charges payable by you, insurance, relevant local taxes, maintenance, professional services and tenant-change costs. Separate tenant and owner obligations under the agreement, law and nature of the item. A clause saying the tenant pays charges does not automatically remove refurbishment or landlord obligations. For furnished property, include replacement furniture and appliances, not merely cleaning.
Include a maintenance reserve in the feasibility model even if it is not all spent this year. It reduces cash available for distribution analytically, but is not necessarily tax-deductible before expenditure. Initial repairs included in acquisition must not be counted again in full as annual expenses; a new fault needs a separate item. Request management budgets, minutes of planned works and a technical inspection, making expected costs explainable rather than using a low round number to improve the apparent yield.
The Revenue Administration’s guide published in 2026 identifies a residential rental-income exemption of TRY 47,000 for the 2025 income year and TRY 58,000 for 2026. Eligibility is conditional, and the full exemption does not repeat for every home owned by the same person. The guide describes actual-expense and lump-sum-expense methods, with rules that must be applied to the owner’s circumstances.
These figures are not exemptions for every property activity, nor is each owner’s tax a fixed percentage of the operating budget’s net result. Distinguish the income year from the filing year, residents from non-residents, and residential income from commercial or tourist operations. Ask an accountant for a case-specific calculation covering other income, expenses, financing and any applicable double-taxation agreement. The tax provisions in the next example are hypothetical allowances, not statutory calculations or tax bills.
Generic illustrative residential interior; this does not depict a property in Bursa, Kocaeli or Sakarya.
Assume acquisition and fit-out costs of TRY 5,000,000. The scenarios vary achieved rent, collections, expenses and the tax provision. Expenses include an analytical maintenance reserve, while the tax provision does not claim to apply a particular tax bracket. This shows the decision’s sensitivity before obtaining a final tax estimate.
Do not give the upside scenario more weight simply because it feels reassuring. Build the base case from evidence and use the downside case to test your ability to continue, without assuming future sale-price growth will solve a cash shortage.
Assume a hypothetical TRY 1,000,000 loan, leaving TRY 4,000,000 of equity invested in the property plus a separate TRY 200,000 reserve. Assume annual instalments of TRY 200,000, including principal and interest under an illustrative schedule rather than an available bank rate. Cash remaining in the three scenarios becomes TRY 75,000, TRY 5,000 and negative TRY 106,000 respectively.
The whole instalment is a cash outflow, but the principal element reduces the loan balance and increases your equity; it is therefore not all an economic expense when calculating profit on sale. Request a schedule showing principal, interest, fees, insurance, early-repayment terms and the rate’s structure. Do not assume financing eligibility or a loan-to-value percentage before approval for the owner and property. In the base case, only TRY 5,000 remains annually: a small repair or late rent payment could require additional funding from your income.
In the base case, retain rent of TRY 32,000, expenses and reserve of TRY 90,000, a TRY 25,000 tax provision and TRY 200,000 of instalments. Modelled obligations total TRY 315,000. Simplified cash break-even is 315,000 ÷ 32,000, approximately 9.84 equivalent months collected. This is a planning approximation holding costs constant, rather than a tax calculation that varies with income.
If management fees are a percentage of collections or tax changes with income, adjust the formula accordingly. Break-even alone is insufficient: allow a margin for uncertainty and cash that does not depend on a quick sale or a perfect tenant.
If measuring capital in riyals or another currency, record your actual conversion rate and a hypothetical exit rate. The following teaching example uses a generic foreign currency, not a lira-to-riyal or lira-to-dollar rate. Hold the property’s nominal value at TRY 5,000,000 to isolate exchange-rate effects, excluding rent and sale costs.
The displayed value is not a total return. To calculate that, add net rents converted at appropriate dates, then deduct sale costs, tax and outstanding debt. If the loan and receipts use different currencies, also test instalment burdens under exchange-rate changes. Rising nominal rent does not automatically remove currency risk.
Record a conservative sale price and its evidence, commission, applicable fees and taxes, the outstanding loan and the expected waiting period. Do not treat the full asking price as cash received or assume a sale-tax exemption without checking acquisition method, date and activity. Selling after a year differs from a long-held investment, and details affect treatment.
Compare another use of your capital suited to your risk and liquidity needs, without treating an old quoted return as available today. Property concentrates money, requires maintenance and management, and may take time to sell. Positive net rent alone is not enough. Define the minimum result you accept and the largest cash shortfall you can fund, then reject or negotiate if the property fails those tests. The asking price can be negotiated; ignoring maintenance does not remove its cost.
Generic illustrative living room; this is not a listed property or evidence of location or quality.
Review the model if the purchase price changes, major maintenance emerges or the bank quotation differs. Record each quotation’s date and validity: recent rent combined with outdated costs creates a misleading comparison. If a material input remains unknown, show a plausible range instead of fixing it at the lowest figure, then test whether your decision changes within that range.
Is the highest yield enough to choose a property?
No. Check what it includes, building condition, collections, financing and liquidity. A high rate assuming zero vacancy and maintenance may be weaker than a conservative, documented one.
Does borrowing always increase profit?
It may increase or reduce the return on your equity and adds a cash obligation. The base example leaves only TRY 5,000 after assumed instalments, so payment capacity needs a separate assessment.
Can I use the TRY 58,000 exemption for any income in 2026?
No. It relates to the income year, income type and eligibility conditions. Check your circumstances, total income and expense method before relying on a calculation.
When is the decision ready to act on?
When every key input has documentary support or a declared assumption, you can withstand the downside case, and you have a reserve and realistic exit plan. Price negotiations can then reflect the property’s ability to serve your objective.
Related topics
Valuing an Apartment in Türkiye in 2026: Price per Square Metre, Comparables and Neighbourhood Differences
Housing Prices and Rents in Türkiye in 2026: Understanding the Indices
Developer Instalments or a Bank Mortgage in Türkiye? Costs and Currency Risk
A Landlord’s Tenancy Agreement in Türkiye: Rent Increases, Deposits, Maintenance and Records
Property and Rental Income Taxes in Türkiye for Non-residents: Records and Returns
Managing Property in Türkiye Remotely: Management Contracts, Rent Collection and Maintenance
Selling Property in Türkiye in 2026: Pricing, Tax and Net Proceeds
Buying a Shop or Office in Türkiye: Licensing, Tenants and Returns
Co-owning Property in Türkiye: Ownership Shares, Management and Exit
This practical assessment can be applied to an apartment in any Turkish city. It assumes neither guaranteed future price growth nor 12 months of rent always collected. Every purchase price, rent, financing figure and exchange rate in the examples is hypothetical, rather than a bank offer or a 2026 market price. Tax rules must be linked to the income year, owner’s status and activity, then checked before reaching a final conclusion.
Illustrative document signing; the photograph does not establish a valid contract or completed legal procedure.
Define the Financial Question You Want to Answer
Do you want annual income, a home to use yourself or long-term capital growth? Mixing these objectives may lead you to count personal occupation as cash rent or add expected appreciation that has not reached your account. Define the measurement currency, investment horizon and cash needs. Someone making monthly loan payments needs a cash-flow assessment; someone who may sell within two years needs an early-exit cost calculation.Separate three results: net property operations, cash remaining after tax and instalments, and profit or loss on sale. Operations may be positive while cash flow is negative because of debt; a lira price increase may coincide with a fall in your own currency. Begin with a simple model and written assumptions, replacing each with a document or quotation. Do not give an unsupported estimate decimal precision that makes it look factual.
Calculate Acquisition Costs and the Reserve Separately
The purchase price is not the full capital required. Request written estimates for transaction fees, legal services, valuation, translation, commission and other applicable costs, identifying who pays each. Add repairs and fit-out before the first letting. Do not treat an advertised percentage as the total official fees: items depend on the transaction and agreement.| Illustrative Acquisition Budget | Amount in TRY | Purpose |
|---|---|---|
| Apartment price | 4,600,000 | Assumed contract value |
| Acquisition fees and services | 200,000 | Illustrative budget, not a statutory percentage |
| Initial repairs | 120,000 | Preparing the unit for use |
| Furniture and appliances | 80,000 | Part of the capital investment |
| Cost of the ready-to-use property | 5,000,000 | Denominator for the property return |
| Separate cash reserve | 200,000 | Funds available for emergencies |
| Total cash required without a loan | 5,200,000 | Funding the purchase and reserve |
Move from Advertised Rent to Actual Collections
Use rent supported by similar properties and, where possible, verified agreements. An advertisement is a potential negotiating level rather than guaranteed income. Separate vacancy from non-payment and introductory discounts: each reduces collections for different reasons. If buying with an existing tenancy, read its rent, terms, duration and collection history instead of immediately replacing it in the model with the new rent you expect.You can model receipts as monthly rent multiplied by equivalent months collected, with clearly stated additions or deductions. For short lets, use sold nights, achieved rates, discounts and cancellations, checking licensing first. Do not add a refundable deposit to income or treat unpaid rent as cash available for the bank. Keep records that reconcile with transfers and invoices.
Identify Owner’s Expenses and Maintenance Reserves
Gather management charges payable by you, insurance, relevant local taxes, maintenance, professional services and tenant-change costs. Separate tenant and owner obligations under the agreement, law and nature of the item. A clause saying the tenant pays charges does not automatically remove refurbishment or landlord obligations. For furnished property, include replacement furniture and appliances, not merely cleaning.Include a maintenance reserve in the feasibility model even if it is not all spent this year. It reduces cash available for distribution analytically, but is not necessarily tax-deductible before expenditure. Initial repairs included in acquisition must not be counted again in full as annual expenses; a new fault needs a separate item. Request management budgets, minutes of planned works and a technical inspection, making expected costs explainable rather than using a low round number to improve the apparent yield.
Tax Depends on the Income Year and Circumstances
The Revenue Administration’s guide published in 2026 identifies a residential rental-income exemption of TRY 47,000 for the 2025 income year and TRY 58,000 for 2026. Eligibility is conditional, and the full exemption does not repeat for every home owned by the same person. The guide describes actual-expense and lump-sum-expense methods, with rules that must be applied to the owner’s circumstances.These figures are not exemptions for every property activity, nor is each owner’s tax a fixed percentage of the operating budget’s net result. Distinguish the income year from the filing year, residents from non-residents, and residential income from commercial or tourist operations. Ask an accountant for a case-specific calculation covering other income, expenses, financing and any applicable double-taxation agreement. The tax provisions in the next example are hypothetical allowances, not statutory calculations or tax bills.
Generic illustrative residential interior; this does not depict a property in Bursa, Kocaeli or Sakarya.
Three Scenarios for the Same Property
Assume acquisition and fit-out costs of TRY 5,000,000. The scenarios vary achieved rent, collections, expenses and the tax provision. Expenses include an analytical maintenance reserve, while the tax provision does not claim to apply a particular tax bracket. This shows the decision’s sensitivity before obtaining a final tax estimate.| Illustrative Item | Upside | Base | Downside |
|---|---|---|---|
| Monthly rent | 35,000 | 32,000 | 28,000 |
| Months collected | 11 | 10 | 8 |
| Annual receipts | 385,000 | 320,000 | 224,000 |
| Expenses and maintenance reserve | 75,000 | 90,000 | 120,000 |
| Net amount before income tax and financing | 310,000 | 230,000 | 104,000 |
| Hypothetical tax provision | 35,000 | 25,000 | 10,000 |
| Cash after provision, before financing | 275,000 | 205,000 | 94,000 |
| Cash ÷ property cost | 5.50% | 4.10% | 1.88% |
Use the Financing Schedule, Not a Claim of Affordable Instalments
Assume a hypothetical TRY 1,000,000 loan, leaving TRY 4,000,000 of equity invested in the property plus a separate TRY 200,000 reserve. Assume annual instalments of TRY 200,000, including principal and interest under an illustrative schedule rather than an available bank rate. Cash remaining in the three scenarios becomes TRY 75,000, TRY 5,000 and negative TRY 106,000 respectively.The whole instalment is a cash outflow, but the principal element reduces the loan balance and increases your equity; it is therefore not all an economic expense when calculating profit on sale. Request a schedule showing principal, interest, fees, insurance, early-repayment terms and the rate’s structure. Do not assume financing eligibility or a loan-to-value percentage before approval for the owner and property. In the base case, only TRY 5,000 remains annually: a small repair or late rent payment could require additional funding from your income.
Calculate Break-even with a Safety Margin
In the base case, retain rent of TRY 32,000, expenses and reserve of TRY 90,000, a TRY 25,000 tax provision and TRY 200,000 of instalments. Modelled obligations total TRY 315,000. Simplified cash break-even is 315,000 ÷ 32,000, approximately 9.84 equivalent months collected. This is a planning approximation holding costs constant, rather than a tax calculation that varies with income.| Illustrative Collection Period | Receipts | Amount Remaining After TRY 315,000 |
|---|---|---|
| 12 months | 384,000 | 69,000 |
| 10 months | 320,000 | 5,000 |
| 9 months | 288,000 | Negative TRY 27,000 |
| 8 months | 256,000 | Negative TRY 59,000 |
Test Currency Exposure Without Forecasting an Exchange Rate
If measuring capital in riyals or another currency, record your actual conversion rate and a hypothetical exit rate. The following teaching example uses a generic foreign currency, not a lira-to-riyal or lira-to-dollar rate. Hold the property’s nominal value at TRY 5,000,000 to isolate exchange-rate effects, excluding rent and sale costs.| Hypothetical Position | Lira per Foreign-currency Unit | Value in Foreign Currency |
|---|---|---|
| At the outset | 10 | 500,000 |
| At the later valuation | 12 | Approximately 416,667 |
| Change Due Solely to Exchange Rates | With TRY 5,000,000 unchanged | Approximately 16.67% lower |
Include Exit Costs and Compare an Alternative
Record a conservative sale price and its evidence, commission, applicable fees and taxes, the outstanding loan and the expected waiting period. Do not treat the full asking price as cash received or assume a sale-tax exemption without checking acquisition method, date and activity. Selling after a year differs from a long-held investment, and details affect treatment.Compare another use of your capital suited to your risk and liquidity needs, without treating an old quoted return as available today. Property concentrates money, requires maintenance and management, and may take time to sell. Positive net rent alone is not enough. Define the minimum result you accept and the largest cash shortfall you can fund, then reject or negotiate if the property fails those tests. The asking price can be negotiated; ignoring maintenance does not remove its cost.
Generic illustrative living room; this is not a listed property or evidence of location or quality.
The Feasibility File and Common Errors
- Document the price, transaction costs, repairs and fit-out, including who pays each.
- Keep evidence of achievable rent, the existing tenancy and collection history.
- Review charges, budgets, major maintenance, insurance and local taxes.
- Request a tax calculation specifying the income year, owner’s status and activity.
- Include the full financing schedule: principal, interest, fees and currency.
- Separate property cost from the cash reserve, and a maintenance allowance from a tax deduction.
- Test three scenarios, additional vacancy, repairs and different exchange rates.
- Calculate break-even and exit results against your objective before paying a deposit.
Review the model if the purchase price changes, major maintenance emerges or the bank quotation differs. Record each quotation’s date and validity: recent rent combined with outdated costs creates a misleading comparison. If a material input remains unknown, show a plausible range instead of fixing it at the lowest figure, then test whether your decision changes within that range.
Frequently Asked Questions
Is the highest yield enough to choose a property?No. Check what it includes, building condition, collections, financing and liquidity. A high rate assuming zero vacancy and maintenance may be weaker than a conservative, documented one.
Does borrowing always increase profit?
It may increase or reduce the return on your equity and adds a cash obligation. The base example leaves only TRY 5,000 after assumed instalments, so payment capacity needs a separate assessment.
Can I use the TRY 58,000 exemption for any income in 2026?
No. It relates to the income year, income type and eligibility conditions. Check your circumstances, total income and expense method before relying on a calculation.
When is the decision ready to act on?
When every key input has documentary support or a declared assumption, you can withstand the downside case, and you have a reserve and realistic exit plan. Price negotiations can then reflect the property’s ability to serve your objective.
Related topics Valuing an Apartment in Türkiye in 2026: Price per Square Metre, Comparables and Neighbourhood Differences Housing Prices and Rents in Türkiye in 2026: Understanding the Indices Developer Instalments or a Bank Mortgage in Türkiye? Costs and Currency Risk A Landlord’s Tenancy Agreement in Türkiye: Rent Increases, Deposits, Maintenance and Records Property and Rental Income Taxes in Türkiye for Non-residents: Records and Returns Managing Property in Türkiye Remotely: Management Contracts, Rent Collection and Maintenance Selling Property in Türkiye in 2026: Pricing, Tax and Net Proceeds Buying a Shop or Office in Türkiye: Licensing, Tenants and Returns Co-owning Property in Türkiye: Ownership Shares, Management and Exit
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