Investment Property in Turku

Invest in Real Estate in Turku

Investment Property in Turku
Investment Property in Turku

Turku property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Turku .

Search Map of Turku Investment Real Estate

Turku ( TOOR-koo; Finnish: [ˈturku] (listen); Swedish: Åbo, Finland Swedish: [ˈoːbu] (listen)) is a city and former capital on the southwest coast of Finland at the mouth of the Aura River, in the region of Finland Proper (Varsinais-Suomi) and the former Turku and Pori Province (Turun ja Porin lääni; 1634–1997). The region was originally called Suomi (Finland), which later became the name for the whole country. As of 31 March 2021, the population of Turku was 194,244 making it the sixth largest city in Finland after Helsinki, Espoo, Tampere, Vantaa and Oulu. There were 281,108 inhabitants living in the Turku Central Locality, ranking it as the third largest urban area in Finland after the Capital Region area and Tampere Central Locality. The city is officially bilingual as 5.2 percent of its population identify Swedish as a mother-tongue.

It is unknown when Turku gained city rights. The Pope Gregory IX first mentioned the town Aboa in his Bulla in 1229 and the year is now used as the foundation year of Turku. Turku is the oldest city in Finland, and served as the most important city of the eastern part of the Kingdom of Sweden (modern-day Finland). After the Finnish war, Finland became an autonomous grand duchy of the Russian Empire in 1809, and Turku was made the capital of the grand duchy. However, Turku lost its status as capital only after three years in 1812, when Tsar Alexander I of Russia decided to move the capital to Helsinki. It was only after the last great fire in 1827 that most governmental institutions were moved to Helsinki along with the Royal Academy of Turku (Turun Akatemia) founded in 1640, which then became the University of Helsinki, thus consolidating Helsinki’s position as the new capital. Turku continued to be the most populous city in Finland until the end of the 1840s, and it remains the regional capital and an important business and cultural center and port.

Because of its long history, it has been the site of many important events, and has extensively influenced Finnish history as the former capital city. Along with Tallinn, the capital city of Estonia, Turku was designated the European Capital of Culture for 2011. In 1996, it was declared the “Christmas City” of Finland. Also, Turku has been officially declared the Food Capital of Finland, because it holds a number of Finland’s oldest, highest quality restaurants alongside a historically famous fish market, held twice a year. Turku’s canteen and café culture has often been compared to French food culture, which is why Turku has also been perceived as “Paris of Finland”; this is also the reason for the Swedish saying: “Varför Paris, vi har ju Åbo!” (“Why Paris, we have Turku!”)

Due to its location, Turku is a notable commercial and passenger seaport with over three million passengers traveling through the Port of Turku each year to Stockholm and Mariehamn.

The financial stability of Turku has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Turku

 

Renting out your Turku buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Turku are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Turku and be prepared to change your initial outlook.
  • Thoroughly research the Turku location with a special emphasis on fringe areas outside the main Turku metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Turku.
  • Ensure that your target investment property in Turku appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Turku provides the secure knowledge that your money is working harder than it would in a local Turku bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Turku, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Turku property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Turku

Flipping property in Turku

 

Flipping property is when we advise clients to buy a Turku property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Turku market has a time to react to the renovation.

 

The Flipping Strategy in Turku

 

Investment property flipping in Turku is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Turku real estate investments are sometimes referred to by professionals as ‘distressed’ Turku real estate.

 

What is distressed Turku property:

 

  • Turku property in need of renovation
  • Turku real estate with a change of purpose and use
  • Oversold Turku property
  • Bank repossessions in Turku

Put simply, long term investors in Turku purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Turku investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Turku property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Turku use a minimum profit value of 22% when looking at potential Turku projects.

 

The reason for this is because there are lots that can go wrong in Turku property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Turku

 

Property Secured Investments is a Private Equity fund that invests in Turku and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Turku

For luxury property investors hoping to add a superb property in Turku to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Turku, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Turku should be entrusted to only the highest-quality agency.

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