property values in Turkey

[freeat]

Having just read article posted by  Cosetta  subject ''prices'' Article from todayszaman.com  is anyone else concerned about the double pricing and fall in property values?

Linkback: https://www.enjoykalkan.com/forum/index.php?topic=1626.0

[hel66]

There is a programme on Bloomberg channel about the Turkish economy on Saturday which may shed some light on the property situation in Turkey. Whatever,  I think the property devaluations don''t affect Kalkan specifically, just the rest of Turkey! I''ve been told by a ''reliable'' estate agent that most of the 200 or so people trying to resell their villas are doing so because they want to upgrade to something with a few more bathrooms [most people are finding that 6 is just not enough]. not because they want to put the money in the bank and collect 17.5% p.a. paid monthly from the time of deposit.

[freeat]

So your money is better in the bank? What about the Turkish lira isn''t it fairly weak, isn''t this the reason for such high interest rates?
Is property rising or falling in value?

[marking]

The bank interest rate is so high because inflation runs at around 9%.
High property prices affect the mortgage system which Turkey is rying to get moving since it''s introduction. Prices have been sliding for 2 or 3 years now, but there are big bubbles, especially in tourist areas. The property prices are not in keeping with wages. As the majority of people wanting to buy here are Turkish, earning Turkish wages, the prices must be more realistic. It''s not just the income generated by foreiegn purchasers that affect the economy, this is a drop in the ocean.
 Prices in Kalkan are way above average, this is because Brits are willing to pay and this has been great for local builders, but these prices are unrealistic in the greater Turkey picture.

[freeat]

so it could be worth sticking some money in the bank here

[freeat]

2,53  2530000       0.38 4/15/2003
2,44  2440000       -0.04 4/15/2004
2.59  2590000       0.06 4/15/2005
2.37  2370000       -0.08 4/15/2006
2.72  2720000       0.15 4/15/2007
2.55  2550000       -0.06 3/26/2008

So the lira is 0.02 down in 5 years. This is a copy from Cosetta''s thread ''Your money and the risk of ytl''
When a market in anything slides everyone loses money in that market. You may have your money in U.S. or U.K. property
and lose. U.K, maxi isas have lost c.10% this year. Who Knows what''s round the corner? Having your money in a Turkish
bank has since a huge return in 5 years. In fact you would have doubled your money, whereas Turkish property has struggled to maintain it''s value especially in the last 4 years and it continues to fall in value today.

[freeat]

sorry, I mean ''seen'' a huge return in 5 years

[marking]

Currently interest rates are 18.5% in a deposit account. Paid monthly from the date you put it in. If you had put £100,000 in this time last year you''d have got £15,750 plus 20 kurush on every pound 20,000ytl another £8,500, not bad for one year. and it is totally legal and above board.

[The Reds]

Its very tempting to put your hard earned money in a Turkish bank account and get 18% interest, however I will not (convert a large amount of £ for YTL) risk loosing any of our life savings. For me its just not worth the risk or having the headache.
Just a few questions to bear in mind,
Would you get the same protection as Northern Rock customers got, back in UK? Somehow if there was a run on a bank here I don`t think you would get much help from government/or bank.

Is the YTL a stable currency? Whenever I watch financial programmes everything in financial markets is always compared to £,$ or euros. There stable currency''s.
How many Turkish banks have folded in the past 20 years?
How many Lira crashes have there been in the past 20 years?
It`s not a good record.

What do you think would have happened a couple of months ago if a judge or two (literally) voted to outlaw the AK party, do you think the economy would not have been effected, for the worst.

Beware!

Jav

[hel66]

Hi Marie,
  My OH says all the time, and it drives me crazy, the worst thing we ever did was to buy our villa in Kalkan. He says if we''d have stuck the money in the bank we''d have earnt enuff by now to buy another villa. Fortunately he was clever enough to stick a wedge in the bank here and any money we lost in the U.K or on the villa over here has been easily made up because of it

[Sheez]

Eggs & Baskets......... never invest money you can''t afford to loose (anywhere on anything).  Even the experts get it wrong.

Evaluate the reasons you want to buy property - is it to enjoy use of it / get a return to cover running costs / or pure return on capital?

[newballs]

Well szimmer, probably all of those reasons,
I don''t think anyone invests in anything expecting not to get a return on their money