Turkey to use lira for all property transactions

[Reyntj]

https://news.az/articles/world/133570

As per the article all rents and property sales to be transacted in lira within 1 month in turkey . I know parts of istanbul are in dollars its mostly the e pensve areas. Akso across turkey high end property are in euro or dollar.

Will north cyorus follow suit ? If it does its a sure sign of turkification ( if thats a word !) . Id say it must be 50:50 chance . The construction companies wont like it as all the materials are paid for in dollars . I think a lot if them are already going to be in trouble .

Git a bad feeling about the centrall bank action today could well be too little too late for the lira .

[EnjoyingTheSun]

The construction companies wont like it as all the materials are paid for in dollars . I think a lot if them are already going to be in trouble .

I must say I thought the constantly building villas and apartments and then not selling most of them didn't seem to have much future in it anyhow.

[Keithcaley]

Could it be the subsidies that are the attraction?

[EnjoyingTheSun]

Could it be the subsidies that are the attraction?

Thought it must be something like that.
Whats the deal?
Unless of course PC censorship prohibits an answer

[Reyntj]

What id envisage one of the problems here if it where enacted is there are currently some builders building holiday complexes and selling them to foreigners with 5 or 10 year in house mortgages . Thats fine when their in sterling for the builders as their costs are in sterling in dollars and the currency are more stable . If it got changed to tl their business model would collapse .

Fortunately they cant bring this in by decree like erdogan just did over nght as we dont have a smilar presidential system here where erdogan makes all the rules at the click of his fingers ....not yet anyway

[EnjoyingTheSun]

What id envisage one of the problems here if it where enacted is there are currently some builders building holiday complexes and selling them to foreigners with 5 or 10 year in house mortgages . Thats fine when their in sterling for the builders as their costs are in sterling in dollars and the currency are more stable . If it got changed to tl their business model would collapse .

Fortunately they cant bring this in by decree like erdogan just did over nght as we dont have a smilar presidential system here where erdogan makes all the rules at the click of his fingers ....not yet anyway

The whole dollar thing is a recipe for disaster given their business model, that's a given.
But building ten villas and selling three can't be a great business model either.

It seems a lot of businesses out here seem to not be optimised so even in the years of milk and honey they don't make as much money as they should.
So when the lean years come they run out of money very quickly.

[Reyntj]

The builders other favourite trick is to build a row of shops along a road in the middle of nowhere

[Bert]

What is their Business Model???

[Keithcaley]

EJS, I don't have any details of subsidies paid to builders /developers but I have heard locals say that there are big incentives to build 'mixed' developments e.g. shops with apartments above...

It may well depend on 'Who you know' ... or even 'Whom you know'

Bert - just saw your post...

I suspect that their 'business model' in most cases consists of 'Oh look, they're doing so-and-so, there must be money in it, let's do that!' - Hence the plethora of Yapı Markets, Supermarkets, Chemists etc.

[waddo]

Could it be even simpler? The money from casinos has got to be spent somewhere - why not on houses nobody can afford, at least the Government will help with the cost as well. Has not the TRNC done something similar already with the new rents policy?

As an interested reader, where and in what currency do Turkey buy their steel? If they are making their own then why are they selling it to their "brothers" in TRNC in dollars instead of in Lira?

[Reyntj]

I agree completely waddo why are tomatoes 15 tl per kg here and only 2 tl in turkey somieone somewhere is making a fortune

[EnjoyingTheSun]

I agree completely waddo why are tomatoes 15 tl per kg here and only 2 tl in turkey somieone somewhere is making a fortune

Don't think we're allowed to say some are profiteering.
Just pin money to your shirt and suck it up like good boys and girls.

I'd like to go on the record and say the rest of the world could learn a lot from how the Turks and TCs do business and their new outlook on basic economic principles and indeed common sense.

[Reyntj]

The turkish central bank just increased nterest rates to 24 % despite erdogans talking about lowering them which strengthens their independence they just need to release this pastor cancel buying missile systems from russia release all the other foreign prisoners and everything will be hunky dory ..maybe..

[David]

Erdogan will not like the banks going against him

[tingtang]

Erdogan will not like the banks going against him
David.

Maybe he will jail them along with the Journalists & University Lecturers etc.

tt.

[Hedge-fund]

He owns the central bank.

Think about it - he and his pals made a few extra million today on the back of his comments.

He is in the unique position of complete political and economic control and will earn billions over the next few years.

Nearer to home - he owns land and hotels in TRNC and will 'solve' the Cyprus Problem to line his pockets in the very near future.

[Hector]

...and the TRNC government solution? Allow 'foreigners' to be able to buy up to 3 apartments and pay 9 or 10% land registry tax on each. That's sorted the financial problems at a stroke then.

[Reyntj]

That was a real wake up call to uk expats of how the authorites view them. They just think we are cash cows. Increasing the numbr of properties that expats can buy isnt abad idea but increasing the tax was really taking the mickey especially whem giving citizens a 2 % discount . They should bebending over backwards to get expats to buy more property here -not increasing taxes - pathetic. Besides buying more than one property here woukd likely only appeal to a small minority .

My only rationale for them doing this is they know that there are a number of expats holding more than one property via a contract circumventing the property rule so this is an opportunity for them to pursuade them to take the deeds and generate extra taxes .

[Reyntj]

https://www.lgcnews.com/trnc-cannot-imp ... rty-deals/

Denktas has come out and said trnc cant do the same as turkey . But laws can be changed ! Its interesting he has come out and said this leaves the door open to join the euro however unlikely that is .