The Turkish lira has exceeded the limit of 6.5 Turkish lira per dollar, which means that the trader who owns $ 100 thousand has become much worthier than half a million Turkish liras, and this equals the value of a luxury villa close to the tourist areas, or luxury apartment in the best tourist areas, And equal two tourist apartments in the medium tourist areas.
This represents an irreplaceable opportunity for foreign tourists to own a property in the most beautiful tourist areas, or in view of the deterioration of economic conditions in their countries because of the lack of a solid economic, industrial and commercial base there.
An opportunity to own in one of the most beautiful tourist countries, one of the few Islamic countries that allow foreigners to own and to obtain its citizenship as well.
Here, the reader has an important question: a 25% devaluation means a 25% rise in property prices.
The fact is that this is true in a number of Arab countries, where greed leads some traders to raise prices a lot in parallel with the dollar, the buyer is unable to buy, or the investor locks his money in anticipation of falling prices (and will not fall), then a deadly recession happens and lasts 5 to 10 years unfortunately!!
In Turkey, the situation is different, and things do not go this way. The Turkish trader does not link his work to the dollar, but by accelerating the turnover of his capital, thus, he does not raise the price so as not to suffer stagnation, and he builds dozens of housing complexes during inflation years. Then sell it and build another value, and so on ... instead of building one complex with a 25% increase, he will not stop working, and then he will not be hit by the recession that affects a number of Arab countries.
In this case, he fills the gap of Turkish lira with a small profit in each complex built in record time and achieves the optimal investment of its capital by circling it twice a year (construction of the residential complex takes 6 months in Turkey and begins to sell as soon as the plans are approved by the municipality) he runs His capital dozens of times in five years.
In terms of savings, the amount saved in banks does not exceed 10% of the capital, and the largest savings in homes that cannot be sold in tens of residential complexes built during the period of inflation, it represents a record surplus in profits for him, and can sell Three times its value at any time, to get the liquidity he wants; because this value is less than the market price after five years, and much more than the cost of construction.
As a practical example, a three-room house in the middle of antep worth 140,000 Turkish liras in 2013 when the dollar was 1.8 l. $ 78 thousand, and today - and before the deterioration of the Turkish lira - the value of the house is 200 thousand liras. When the dollar was 4.5 lt., i.e.: 45 thousand dollars.
The currency depreciated from 1.8 to 4.5 by 250%, while the value of the property rose by only 43% during the same period at the expense of the Turkish lira, and the value of the property fell by 52% at the expense of the dollar.
However, the real estate investor in Turkey covers this inflation and increases it by large profits without affecting the average consumer, or the purchasers of the tourist property because he calculates his investment in Turkish lira and does not think about the dollar as it has shown previously.
The builder of a single building in Turkey earns 25% of his minimum capital, and the one who builds a complex earns 45% of his minimum capital.
Thus, the single building owner earns 50% each year, because the construction takes six months, he runs his capital twice, and assuming that he did not run the profits and consumed them in full in his well-being and life, then he covered the amount of inflation during the five years, 5 years = 250%, in addition to the high prices of apartments that were not sold immediately because of inflation, but if he runs part of the profits he will be living a decent life, and exceed inflation in stages.
Those who build residential complexes and runs their capital twice a year will have a profit of 90% in the year x 5 years = 450%, and this is also assuming that he did not run profits and did not expand his business.
This is much better than the one who runs his capital once during this period and raises the value of its property by the dollar's rise, causing a recession that makes him after five years barely covers the amount of inflation, without paying attention to the profits and the returns of his work, and without expanding the urbanization in his country and state.
If we add to the above that Turkey is wearing and build from what is it manufacturing, not relying on the construction of Western or Eastern engineers, nor on the importation of technologies from abroad, then we will know that Turkish economic policy has become a general culture of traders as well.
The difference between the advanced urbanization policy in Turkey and the backward policies of some other countries is that Turkey has 10 times more urbanization in just five years than the countries with lagging economic policies, assuming that Turkey's traders did not run any of their profits in the construction trade!
Turkey has strong economic fundamentals in the field of construction alone. It has suffered attacks and setbacks. Turkey is far better than the countries that try to make hostility with it. These countries do not have an independent sovereign currency. They are a hostage and a part of the dollar. It does not have a successful economic policy, no solid economic foundation, and once the dollar is exposed, they all will be exposed.
We ask Allah for this meltdown of the Turkish lira exchange rate to pass on to safety and to rebound again where many attacks have passed before.
Edited: Imtilak Real Estate ©
Source: Turk Press
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