Posted on 27 November 2009
The Turkish central bank has cut the key interest rate even further in a bid to shore up the recent economic upturn. The CB cut rates by a further 25 basis points, bringing borrowing rates down to a record low of 6.50 percent and lending rates to 9 percent. This, despite the lobbying of several private banks against any further cut in rates.
This is great news for anyone considering a property purchase in Turkey, because it makes Turkey property even better value for money.
As I covered in yesterday’s post, Brits cannot find better value for money in property anywhere else within a short-term flight — especially given the current strength of the pound against the Turkish Lira.
As I covered in an update to yesterday’s post, the pound went higher against the Lira than it has been in almost a year yesterday, touching 2.526 before falling back slightly to 2.516 where it still rests.
This leaves Turkey at over 11% cheaper for British buyers than it was in April when the pound stood at 2.30. That combined with the continual record-setting interest rate reductions means that British buyers are currently getting an exceptional deal when buying property in Turkey. Not to mention the fact that those who act quickly will get a sizeable chunk of instant equity on their purchase.
Many people think it is too late for them to capitalise on the weak lira as it takes a while to buy property, but the Lira has not gone below 2.45 for several weeks now, and Moneycorp have forecast the pound to stay strong against the Lira for the foreseeable future in an interview with Write About Property. So there is time to get in and grab your bargain.