The decline of the Turkish lira ... a golden opportunity to acquire an apartment in Istanbul

What are the reasons for the decline of the Turkish lira? And where will it end up?

High inflation rates, a sharp fall that the Turkish lira has never seen before, and monthly rents in Istanbul are flying! so what? After the fall of the Turkish lira, where is Turkey going?

Does the Turkish lira fall to infinity?

Turkish citizens and foreign residents in Turkey live in fear that the lira will continue to fall to infinity, as described by some economic analysts, but hey..is this possible? How is it possible for a country from the twenty countries and the most powerful global economic centers to continue in this way?

Robin Brooks, "Chief Economist at the Institute of International Finance (IIF) answers these questions through a series of tweets he recently posted on his Twitter account.

Those that included an explicit denial of what was being fabricated by people not concerned with the economic field, as he described them, stressing that all the analyzes that were put forward regarding the decline of the Turkish lira are gossip aimed at spreading panic.

And that Turkey is able to get rid of the crisis it is currently experiencing, noting that the crisis it experienced in August of the year 2018 was much larger than what it is going through today.

Falling Turkish lira an opportunity to buy an apartment?

The exchange rate of the Turkish lira against the dollar fluctuates between nine and a half and nine Turkish liras per dollar, and this means that the investor who owns 100 thousand dollars owns nearly one million Turkish liras, which is the price of a luxury property in Istanbul complexes located in areas relatively close to the city center, and the price of two properties in modern suburbs

If the investor intends to buy resale properties, this means that he is able to buy three apartments and employ them for investment by leasing them and benefiting from their monthly or annual returns.

Especially since investors coming to real estate investment in this way are covered by the tax exemption law in Turkey

The fall of the Turkish lira is also an ideal opportunity for those interested in obtaining Turkish citizenship in exchange for a property worth 250 thousand dollars, as the options for ownership in front of them have become wider and more diversified due to the high value of the currency they own (the dollar) against the Turkish lira.

And here you may have a very important question, why did you rush to buy a property in Turkey? While the pound can fall at a greater rate in the coming periods?

The answer to the question is very simple; There will be no greater decline than that anymore, and if there is a new decline, it will be very simple and will not be stable, and the evidence for this is the end of the life cycle of the Turkish lira.

The end of the time cycle, will end the decline of the Turkish lira!

What is meant by the end of the time cycle of the Turkish lira? And how can he restore the strength of the lira against the dollar and foreign currencies again?

According to the analysis of investing.com, the Turkish lira is on a date with the restoration of its strength and rise to the level of 4.00 to 5.80 Turkish liras for every dollar, depending on the time cycle that is scheduled to end with the advent of the new year 2022.

Let's explain it simpler:

In our explanation, we will take the Swiss franc as an example similar to what is happening in Turkey today

In the year 1995, the Swiss franc was suffering severe weakness and a huge collapse in its value against the US dollar, if one dollar was equal to 11,100 Swiss francs. This means that the Swiss currency has lost 85% of its value

In light of this, all citizens and residents in Switzerland sold the franc and bought the dollar, expecting the franc to collapse again according to what the situation was referring to at the time.

But no one knew that the Swiss Franc's time cycle was complete, and the franc started to regain strength against the dollar until it managed to raise its market value by more than 70% overnight.

These events are completely identical to what is happening in Turkey today, and the expectations of senior economists indicate that the time cycle of the Turkish lira may take from 8 to 14 months to end and return to its old rates at 4.50 or 5.80.

Editing by Ramzy Real Estate Team ©

Sources:

investing.com

Turkish Republic newspaper