Time to invest?
With the lira struggling is it time to snap up property in Turkey?
Is it time to invest in property in Turkey? There are two ways of looking at the way the nation’s economy is performing at the moment.
You can consider it from the perspective of someone who lives and works in the county and is paid in Turkish lira.
Alternatively, you can approach it from the perspective of an overseas investor or holidaymaker loaded with a currency like US dollars or pounds sterling.
Feeling the pinch
From the former’s viewpoint, things aren’t great at the moment. With the money markets as they are, its value has dipped somewhat. The end result is that basics – especially imports – have become increasingly expensive and just about everyone is feeling the pinch.
Both the government and the banks have been doing all they can to stave off a full-blown recession. Some generous mortgage deals have kept the property market going for example and inflation figures are still lower now than they were 18 months ago.
But that doesn’t mean prices aren’t rising; they are – but just at a slower rate. And, when you consider a pound bought 3.5 lira five years ago and now buys 9.6 (August 2020), you can see why many businesses are keen to see that downward trend reversed.
The investors’ viewpoint
But, from the point of view of someone with dollars or pounds in the bank, it’s a whole different story. Despite inflation, their money goes much further than it did back in 2015. This is good news if you’re heading out to Turkey on holiday within the next few weeks.
And it’s the same when it comes to investing in property for sale in Turkey. Yes, it’s true that a home will probably cost more now than it did five years ago. However, as asking prices haven’t risen at a rate which counter-balances the decline of the lira, homes can still seem remarkably cheap.
Would you find a four-bedroom villa with a private pool and gardens for less than £300k in the UK, for example? We very much doubt it. But, if you’d like to have a quick browse of our portfolio, we can guarantee you’ll find quite a few.
Not only that, if a property for sale in Turkey is valued at $250,000 or more, you may even find citizenship thrown in.
But, if that’s enough to prompt you to consider it seriously, you also need to be aware there’s a rub. To continue to benefit from the exchange rates, your income will need to remain in a currency worth more than the lira.
Also, it’s important to remember future global events similar to those which have played heavily against the Turkish lira of late could have a similar effect on any other currency too. A natural disaster or even a man-made one can change everything in the blink of the eye. So, like any investment, you need to think carefully about how much risk you’re prepared to take on board.
Can we help you?
If you’d like to discuss your options further or learn more about the logistics of moving to a property for sale in Turkey, why not give us a call or drop us a line? We’d be happy to advise you if we can.
Alternatively, you can browse earlier blogs which include help and guidance on some of the practical aspects for moving overseas.