Has the Turkish Home Loan Market Saved Because No Mortgage Regulations was In Place?
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Posted On :
Dec-27-2009
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Article Word Count :
644
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A lot of foreign investors are contemplating on renting up a property on Turkish grounds. This is basically because of the real value of the place especially when it comes to tourism. The country is a good combination of big beach resorts and a favourable climate.
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A lot of foreign investors are contemplating on renting up a property on Turkish grounds. This is basically because of the real value of the place especially when it comes to tourism. The country is a good combination of big beach resorts and a favourable climate. An added advantage that foreign investors see is the fact that homes are reasonably priced. With all these facts about Turkey, everybody seems to be interested in signing up a home loan in any of the banks or financial institutions offering one.
Developments of various properties in the place are considered budget-friendly. This being so, investors both from within and outside the nation are taking their chances on investing on home loan. But, is it true that the Turkish home loan market was put aside because there were no concrete mortgage regulations in the place?
The real scenario in Turkish home loan market
The Turkish mortgage regulation was supposed to provide tax incentives to mortgagors. These tax incentives are now utilized in order to develop the primary and secondary mortgage markets in the country.
Mortgage regulations in Turkey are not to be taken as an opportunity to raise the fair market value of Turkish properties offered in the loan mortgage market. If this happens, prospects of the said market – especially foreign investors – may back out from the project. This may even be a cause of another problem when selling mortgage bonds to countries like the USA.
How did Turkey solve the home loan problem coinciding with mortgage regulations?
Turkey must be very thankful with the presence of big construction companies who helped develop new projects just after the mortgage regulations have been implemented. These projects led to the decrease of home prices and are now available for loan. Effortlessly, the government as well as project proponents are able to sell the homes to various investors.
Of course, the country continued to flourish in terms of tourism. In fact, Kusadasi and Fethiye on the west continue to be recognized worldwide because of its well-known resorts. Smaller beach towns like the Aegean and Mediterranean Region are not left lagging behind. For anyone who continues to search for mortgaged property in Turkey, Antalya and Side at the southern part are popular choices.
Mortgage regulations increase the value of the Turkish home loan market
Despite the presence of mortgage regulations in Turkey, there is no reason for an investor to be afraid about investing on a property through loan mortgage. In fact, as the market progresses, investors are given the chance to use the gearing technique.
Gearing is a method that can help anybody who looks for higher returns on investment. Simply put, if you eye to purchase a property worth £200,000 with 50% taken from home loan, there is a chance for you to gain more once the property appreciates in by 10% in a year’s time. Doing the math, you may gain as much as £20,000 or 20% out of your £100,000 initial investment.
What makes the Turkish home loan market boom?
Aside from tourism and affordability of properties on Turkish grounds, there are yet other reasons for foreign investors who want to enter into the loan market scenario. Turkey is accessible most especially to the United Kingdom with only four to five hours of travel using Turkish airports. Additionally, every person can acquire a home not only in areas situated near the beach but even in the rural areas.
Rural properties in Turkey are eyed by investors because of the cheaper prices attached to them. With this, it really does not matter where you buy a Turkish property. As long as you enjoy the country at its best, your home loan will be paid for not only in monetary terms but in aesthetical pleasures.
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Article Source :
http://www.articleseen.com/Article_Has the Turkish Home Loan Market Saved Because No Mortgage Regulations was In Place?_7700.aspx
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Author Resource :
Caglar Kilinc, the author of Konut Kredileri Tuketici Bilinclendirme Portali. More info on the subject is at Has the Turkish Home Loan Market Saved Because No Mortgage Regulations was In Place? and resources from other Konut Kredileri and Konut Kredisi Faiz Oranlari sources are used such as Konut Kredileri Faiz Oranlari.
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Keywords :
Konut Kredileri Tuketici Bilinclendirme Portali, Konut Kredileri Faiz Oranlari,
Category :
Finance
:
Real Estate
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