Turkeys new mortgage law, which allows banks to set variable interest rate
should, should see home ownership increase from it’s current 4.5%. The
first ever mortgage law was passed in February this year and should be implemented
by early 2008.
This opens the doors for lower to middle income families in Turkey.
From an investors point of view this is a great opportunity to invest in an
up and coming housing market. The demand for mortgages has not been
high just now due to high interest rates. However, once the interest rates
start to lower it is predicted the demand for mortgages will increase dramatically.
"Once it takes off it’s going to be the single largest driver
in absolute terms of retail loan growth for the next five to 10 years," Credit
Suisse analyst Yavuz Uzay said.
Maybe now is the time to look at Turkey and put money into property for a
3 – 5 view of making a profit.
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May 27th, 2007 at 4:04 pm
This is a very good move by Turkey. However, although this is expected to spur real estate growth, countries in the EU, taking the example of neighboring Greece are in a advantage here. Other than the many of the benefits ascribed to buying property in Greece thanks to it being a member of the EU, the variable interest rates scheme is favorable. Taking mortgage loans for over € 100 000 assures you a straight variable rate with no fixed rates, at around 4%. So, I would suggest buying Greek property for the time being. You can view our Greek Homes at http://www.greekhomes.info