Posted on 05 May 2009
Just under a month ago, we revealed a prediction by Moneycorp that Sterling would strengthen against the Turkish Lira. At the time 1 Pound Sterling would have bought you 2.30 Turkish Lira, and Moneycorp said:
“In the long term we expect the Pound will get stronger, certainly climbing back up to 2.35% and possibly even to 2.40%.”
At the same time Julian Walker, director of Spot Blue, specialists in Turkish property, said: “Such a rise in Sterling’s value against the Turkish Lira is likely to make Turkey property even more attractive to British property buyers.”
According to Moneycorp, 1 Pound Sterling is currently worth 2.35 Turkish Lira, making Turkish property about 5% cheaper to British buyers, giving it instant equity and making it more attractive to British buyers.
Currency changes like this have had a positive impact on property markets in the past, not least in the case of London in the past few months. Sterling’s nose dive took 20% of British property to Euro zone buyers, on top of the 20% already lost to the correction, making it an opportunity to good to miss.
Turkish property is currently among the top 5 most popular with British lifestyle buyers, and sure to be a favourite with investors when overseas property investment is restarted in a big way again in the New Year.
My advice to potential investors is to contact one of the Forex traders, for their predictions on the future of the currencies, and buy when the time is right. For instance, Moneycorp put 2.40 Turkish Lira as the ceiling on Sterling’s growing value. So a good time to call would be when it reaches 2.85 – 2.90 and see if their estimations have changed; will it go higher? And buy when the time is right.