BURAK TAŞÇI – BIGPARA
Created Date: January 13, 2025 08:36
The Central Bank’s decision to reduce interest rates and the expectation of a subsequent decrease increased housing prices and caused a decline in loan interest rates. Even though interest rates seem to be falling, there needs to be more decline to catch up with the interest rates of around 1 percent of 3-4 years ago. Interest rates started to fall faster than a few months ago.
Most of those who want to own a house in Turkey use a mortgage loan. While the home ownership rate decreased due to the rapid rise in house prices in recent years, there was an increase in sales in the last months of 2024, although there was a stagnation due to high loan interest rates and high deposit interest rates.
Those who wanted to meet their housing needs and avoid being tenants began to turn to houses they could buy with their savings. Since rent increases of over 50 percent remained high compared to the salary increases received, the possibility of paying rent began to become difficult. In metropolitan cities, there are no houses left to rent below the minimum price of 20-25 thousand liras, which makes housing loans attractive despite the high interest rates.
HOME LOAN IS FIXED, RENT IS INCREASING EVERY YEAR
When a housing loan is taken out, the installment to be paid in 10 years remains constant. However, since the rented house is increased every year according to the 12-month average of the CPI, the money paid goes to the landlord, so there is no acquired right.
SHOULD THOSE WHO HAVE A DOWN PAYMENT BUY IT?
It is an advantage for those who have enough down payment to buy a house by using a loan. Although some economists have argued in recent years that it is more reasonable to rent instead of buying a house, the realities of Türkiye do not leave room for theories. Thanks to the house purchased, you avoid paying rent, the value of the house increases, the first house purchased serves as a stepping stone to buying a better one in the coming years and makes it easier to buy a new flat.
If there is a down payment, it is advantageous to purchase a suitable house by determining the district and location. For example, instead of paying rent for life, housing investment is important in order to buy 2+1 houses sold for 2-2.5 million, pay off the loan and protect the capital invested by benefiting from the rent value of the house.
In some districts of Istanbul, there are houses with prices starting from 2-2.5 million lira in earthquake-resistant 10-15 year old sites, and their prices have increased by 15-20 percent in the last few months.
DEMAND FOR HOUSING DOES NOT END
Although buying a house has been put on the back burner today due to high deposit interest rates, the demand for housing by those in need of shelter continues. There is a demand for nearly 800 thousand houses annually, but there is no supply. For this reason, housing prices remain high.
WHICH BANK HAS THE LOWEST INTEREST?
Lowest housing Banks that give interest on loans are starting to be preferred. For the consumer, paying the lowest interest and the lowest installment amount comes first.
Lowest credit The rate is currently 2.84 percent and the repayment of 1 million lira in 120 months increases to 3.5 million lira. The monthly installment amount is 29 thousand 400 lira.
Source: bigpara.hurriyet.com.tr
