Turkey · Money and mortgage
Rent or buy a flat in Turkey: an honest calculation
Hidden owner's costs, the break-even point, and the scenarios in which renting beats buying — a calculation for the markets of İstanbul, Ankara and other Turkish cities.
In Turkey the belief 'rent is money thrown away, property is an investment' is so widespread that most people take a mortgage without ever running the numbers. But this equation does not always favour buying. A mortgage at a high-rate period can be much more expensive than renting — and you also lose mobility. This guide speaks in figures.
§ 01
The owner's hidden costs
- 01Interest payments: the huge invisible line
On a flat purchase at ₺2 million with a 40% down payment and a loan of ₺1.2 million over 10 years at current rates, the total amount paid can reach ₺2.5–3.5 million. The interest overpayment alone is comparable to, or greater than, the loan amount itself. Without that figure the question 'rent or buy' is incomplete.
- 02Taxes, aidat, maintenance
Property tax, the annual aidat (building maintenance charge) and periodic repairs together amount to 0.5–1.5% of the flat's value per year. A tenant bears most of these items less. Include this difference in your comparison.
- 03Opportunity cost
Money 'frozen' in the down payment could be earning a return in another instrument. ₺400,000 on a time deposit is a meaningful yearly income. Without taking opportunity costs into account, the conclusion 'a flat is cheaper than rent' is methodologically wrong.
§ 02
Break-even point
- 01How to calculate the break-even point
Add up all the costs of buying (tapu duty, notary, fees) and the owner's extra monthly costs (interest + tax + aidat minus the 'price' of renting an equivalent home). Most calculations show: for buying to be genuinely worthwhile, you need to live in the flat for 7–12 years.
- 02Does your life plan match?
If your profession may require moving to another city or country, your family situation may change, or the next 5 years are unpredictable, then renting is preferable — not for financial reasons but strategically. Selling a flat quickly means losing on transaction costs.
- 03Don't overestimate property price growth
Turkish property has historically risen with or above inflation, but this is not guaranteed for every period or every location. Market saturation, urban construction or an economic slowdown can produce growth below inflation. Research the specific property.
§ 03
When renting wins
- 01At high rates, renting wins
When mortgage rates are high, the monthly loan payment can substantially exceed the rent for an equivalent flat. A tenant who regularly invests the difference often ends up in a better net-capital position than a buyer.
- 02The value of flexibility
A tenant can move in 1–3 months; an owner can wait months for a buyer, risking the price and bearing transaction costs. This flexibility is especially valuable during career growth.
- 03Free capital for diversification
Money not put into a down payment can be held in liquid diversified instruments. Over the long run a diversified portfolio may offer lower risk than a single piece of real estate.
⚠ This material is for informational purposes only and does not replace legal advice. For major transactions always work with a qualified specialist in your country.