Trampa501 Posted January 1, 2023 Share Posted January 1, 2023 Inflation seems a tad high! https://www.reuters.com/markets/turkey-annual-inflation-ease-668-december-432-year-later-2022-12-28/ Someone I know is buying Istanbul properties (and getting a good rental yield from them). I've tried to make the point that any gains they make can be wiped out by a currency crash, but am I the deluded one in this case? They are buying into a rising market and getting good rental income from it. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted January 1, 2023 Share Posted January 1, 2023 2 minutes ago, Trampa501 said: Inflation seems a tad high! https://www.reuters.com/markets/turkey-annual-inflation-ease-668-december-432-year-later-2022-12-28/ Someone I know is buying Istanbul properties (and getting a good rental yield from them). I've tried to make the point that any gains they make can be wiped out by a currency crash, but am I the deluded one in this case? They are buying into a rising market and getting good rental income from it. Just been to Turkey. It is very vibrant and has a young population, so it should grow based on demographics. That said, you are right about the currency. I guess if the mortgage is in Lira, you may get some relative protection, though the rates will then be high. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 1, 2023 Share Posted January 1, 2023 Croatia now with Euro currency and in the Schengen. Quote Link to comment Share on other sites More sharing options...
Trampa501 Posted January 1, 2023 Author Share Posted January 1, 2023 12 minutes ago, Mikhail Liebenstein said: Just been to Turkey. It is very vibrant and has a young population, so it should grow based on demographics. That said, you are right about the currency. I guess if the mortgage is in Lira, you may get some relative protection, though the rates will then be high. I don't know what difference it makes, but apparently there is a trend for people to buy and sell in US dollars, as the Lira is not trusted. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted January 1, 2023 Share Posted January 1, 2023 20 minutes ago, Trampa501 said: I don't know what difference it makes, but apparently there is a trend for people to buy and sell in US dollars, as the Lira is not trusted. Yes, that is true, but I guess it depends what your income is in. If a European citizen bought and borrowed in dollars, they might find the (own currency, say Euro) borrowing increased if the Dollar rose, and if the asset price is really set in Lira, it could fall just on further Lira weakness. Always good to assess relative currency movements if making such a trade. I recall years ago people getting killed borrowing in Swiss Francs. Quote Link to comment Share on other sites More sharing options...
shlomo Posted January 1, 2023 Share Posted January 1, 2023 41 minutes ago, Trampa501 said: Inflation seems a tad high! https://www.reuters.com/markets/turkey-annual-inflation-ease-668-december-432-year-later-2022-12-28/ Someone I know is buying Istanbul properties (and getting a good rental yield from them). I've tried to make the point that any gains they make can be wiped out by a currency crash, but am I the deluded one in this case? They are buying into a rising market and getting good rental income from it. I just came back from holiday in Turkey (3 months ago) I was in Istanbul and really liked it, on the tube young men would get up and let my wife have a seat they would not do this for me though we are both in our 60s, the food was plentiful and cheap they have no hooligan problem, also No Kanye West type males pushing in front in the queue I also strangely did not see any Russian or Ukrainians, which according to the media is filling up Istanbul If I was Turkish or had Turkish friends I would definitely consider it Quote Link to comment Share on other sites More sharing options...
shlomo Posted January 1, 2023 Share Posted January 1, 2023 (edited) 28 minutes ago, Mikhail Liebenstein said: Yes, that is true, but I guess it depends what your income is in. If a European citizen bought and borrowed in dollars, they might find the (own currency, say Euro) borrowing increased if the Dollar rose, and if the asset price is really set in Lira, it could fall just on further Lira weakness. Always good to assess relative currency movements if making such a trade. I recall years ago people getting killed borrowing in Swiss Francs. You could be using the wrong formula we boomers on HPC do not need a mortgage and if a property was £80k who needs a mortgage I was considering Romania to retire in but was shocked that I actually liked Istanbul so much and things worked Edited January 1, 2023 by shlomo Quote Link to comment Share on other sites More sharing options...
Maghull Mike Posted January 1, 2023 Share Posted January 1, 2023 I recall in the 70s everyone one (with any spare cash) trying to buy the biggest house they could to beat inflation Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted January 1, 2023 Share Posted January 1, 2023 14 minutes ago, shlomo said: You could be using the wrong formula we boomers on HPC do not need a mortgage and if a property was £80k who needs a mortgage True, but even then currency movements are important and the overseas BTL types nearly always borrow - as they like leverage. Quote Link to comment Share on other sites More sharing options...
Trampa501 Posted February 11, 2023 Author Share Posted February 11, 2023 A grim reminder from mother Nature that things are not always "as safe as houses". The earthquakes have devastated parts of southern Turkey and northern Syria. It must be remembered that Istanbul is close to a fault line, and they expect a major earthquake there within the next 20 years. Quote Link to comment Share on other sites More sharing options...
msi Posted February 11, 2023 Share Posted February 11, 2023 45 minutes ago, Trampa501 said: A grim reminder from mother Nature that things are not always "as safe as houses". The earthquakes have devastated parts of southern Turkey and northern Syria. It must be remembered that Istanbul is close to a fault line, and they expect a major earthquake there within the next 20 years. It's pretty grim with the current situation. If you can spare some change, plenty of gofundme's and regular charities collecting on their behalf. For all our pontificating here, it's a clear reminder of what is truly important in life. Quote Link to comment Share on other sites More sharing options...
dpg50000 Posted February 12, 2023 Share Posted February 12, 2023 22 hours ago, msi said: It's pretty grim with the current situation. If you can spare some change, plenty of gofundme's and regular charities collecting on their behalf. For all our pontificating here, it's a clear reminder of what is truly important in life. Agreed. Quote Link to comment Share on other sites More sharing options...
Trampa501 Posted July 10, 2023 Author Share Posted July 10, 2023 It seems as Erdogan is now tilting towards the west, as he's noticed how weak Putin is now. Or perhaps he knows the economy is in dire straits and applying to join the EU is a last gasp attempt to secure stability? Watch this space. Big events are about to take place. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted July 10, 2023 Share Posted July 10, 2023 24 minutes ago, Trampa501 said: It seems as Erdogan is now tilting towards the west, as he's noticed how weak Putin is now. Or perhaps he knows the economy is in dire straits and applying to join the EU is a last gasp attempt to secure stability? Watch this space. Big events are about to take place. I'd love to have Turkey fully onside. It's a really great country, just needs to fix its economics, as the fundamentals are otherwise very good. Quote Link to comment Share on other sites More sharing options...
robmatic Posted July 10, 2023 Share Posted July 10, 2023 On 11/02/2023 at 11:50, Trampa501 said: A grim reminder from mother Nature that things are not always "as safe as houses". The earthquakes have devastated parts of southern Turkey and northern Syria. It must be remembered that Istanbul is close to a fault line, and they expect a major earthquake there within the next 20 years. Yeah, we are moving away from Istanbul this month because of the earthquake risk. When that major earthquake happens, it will be brutal. Fifteen million people and some neighbourhoods are exceptionally high density with poor building quality. Quote Link to comment Share on other sites More sharing options...
robmatic Posted July 10, 2023 Share Posted July 10, 2023 24 minutes ago, Mikhail Liebenstein said: I'd love to have Turkey fully onside. It's a really great country, just needs to fix its economics, as the fundamentals are otherwise very good. It does have great potential, but it's not just the economics. Arguably the economics is the result of another issue, which is too much clientelism. The central bank is full of yes men, and generally to get ahead in business you need to be on good terms with the party in government. It's a shame, the country is full of engineers and quite astute businesspeople but they operate in a very tilted environment. Quote Link to comment Share on other sites More sharing options...
winkie Posted July 10, 2023 Share Posted July 10, 2023 How about Montenegro?......low taxes and low cost of living...... https://expatra.com/guides/montenegro/living-in-montenegro/ Quote Link to comment Share on other sites More sharing options...
Trampa501 Posted July 10, 2023 Author Share Posted July 10, 2023 20 minutes ago, winkie said: How about Montenegro?......low taxes and low cost of living...... https://expatra.com/guides/montenegro/living-in-montenegro/ The big danger with small countries is that every now and again they could fall victim to a predator larger nation. Otherwise they are very attractive. Quote Link to comment Share on other sites More sharing options...
Trampa501 Posted July 10, 2023 Author Share Posted July 10, 2023 38 minutes ago, robmatic said: It does have great potential, but it's not just the economics. Arguably the economics is the result of another issue, which is too much clientelism. The central bank is full of yes men, and generally to get ahead in business you need to be on good terms with the party in government. It's a shame, the country is full of engineers and quite astute businesspeople but they operate in a very tilted environment. In a way Turkey is a bit like an extreme version of the UK. Far worse inflation and money problems. Some strong sectors of economy and a very strong military. But still struggling to cope with a ex-Imperial role, that means a troubled relationship with the EU. Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted July 10, 2023 Share Posted July 10, 2023 Might be better off waiting before buying property in Turkey. Their currency looks like it's going to zero via hyperinflation so its value against the pound will continue to go down. In a few years you will probably be able to buy a property for a few thousand pounds. Quote Link to comment Share on other sites More sharing options...
winkie Posted July 10, 2023 Share Posted July 10, 2023 13 minutes ago, Trampa501 said: The big danger with small countries is that every now and again they could fall victim to a predator larger nation. Otherwise they are very attractive. One foot in one another foot in another.....six months in the EU six months outside the EU until in the EU for the first time or back in it again......strength together, weaker apart. Quote Link to comment Share on other sites More sharing options...
anonguest Posted July 10, 2023 Share Posted July 10, 2023 36 minutes ago, winkie said: How about Montenegro?......low taxes and low cost of living...... https://expatra.com/guides/montenegro/living-in-montenegro/ Too many Russians there these days? So I understand it. Quote Link to comment Share on other sites More sharing options...
anonguest Posted July 10, 2023 Share Posted July 10, 2023 (edited) 1 hour ago, Mikhail Liebenstein said: I'd love to have Turkey fully onside. It's a really great country, just needs to fix its economics, as the fundamentals are otherwise very good. Maybe. I know it's not a desert, but when I think of Turkey (or other similar such ridiculously hot places) I can't but help remember the words in this scene. "It's a burning fiery furnace" 😉 Edited July 10, 2023 by anonguest Quote Link to comment Share on other sites More sharing options...
winkie Posted July 10, 2023 Share Posted July 10, 2023 4 minutes ago, anonguest said: Too many Russians there these days? So I understand it. Russians against a dictator.......do you blame anyone wanting to flee what they are against? Never been there to be honest but would love to......will let you know. Quote Link to comment Share on other sites More sharing options...
anonguest Posted July 10, 2023 Share Posted July 10, 2023 1 minute ago, winkie said: Russians against a dictator.......do you blame anyone wanting to flee what they are against? Never been there to be honest but would love to......will let you know. I wouldn't mind IF they're the anti-Putin fleeing types, but I've been told that it's more a case of too many oligarchs, Russian mafia types, etc. instead. Dunno how much truth there was to it. But, yes, it does look beautiful. Quote Link to comment Share on other sites More sharing options...
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