So as you might have heard our currency lost about 15% of its value on one day. Right now everyone is scrambling to get rid of ₺ cash and the most popular instrument to do so here seems to be real estate, maybe along with gold and USD/euros.
With the CBRT reducing interest rates, the public banks have followed suit with reducing housing loan rates to ridiculously low levels around 0.70% yearly but private banks haven't. Something similar had happened last year also with rates lower than 0.70% with government subsidies in housing purchases.
Last week data came in that said loan defaults increased 150%. Especially public banks are scrambling to give loans to everyone. They literally call people earning minimum wage and try to give them housing loans more than 10x their yearly income.
The result of all this is that houses have sold like hot cakes since 2020. House prices have nearly doubled in one year. But no one is living in these houses. In 2018-2019 we had tens of thousands of empty houses that could not be sold. Now we apparently have a housing shortage.
Amidst all these my parents are considering buying a house for investment. I said that's not very rational right now. Am I right to be concerned?
Submitted December 10, 2021 at 02:04AM by egeym https://ift.tt/3rYLRId
