Interest rates decreases causes vitality to real estate sector
The recent interest rate cut by the Central Bank has also created excitement in the real estate market. İt creates opportunity for people who want to buy real estate houses.
Following the Central Bank’s interest rate cut, the decrease in loan interest rates in public banks caused a positive altitude in real estate sector. Although interest rates vary in each bank, it is possible to get home loans with interest starting at 0.99 percent.
Sales rates expected to rise
İn june 2018 Turkey made 119,413 residential sales, fell to 61,000in 2019 to 335 in June. There was a 84% decrease in housing loan usage compared to last year. Because of the high interest rates, no one is willing to take home loans, everyone is hopeful of the discount coming to revive the sales that fall when people with buy by cash.
Expert brokers do not expect an increase in house prices in general due to the fall in interest rates. It is expected that home stocks, which have been on the rise for a long time due to the calm in the market, will decrease with the reduction and therefore there will be activity in the construction sector in the long term. The fact that the current deposit rates are at 19.5 percent is one of the reasons that will prevent the increase in house prices.
Payments will be easier
The ease of payment brought by the interest rate discount can be described as follows: When a house of 500,000TL with 120 percent interest rate is taken in 120 installments, the amount to be paid monthly is 9,000TL and the total money to be repaid is 1 million 81,111 TL. The same house, with the same installment number 0.99 % credit interest, the monthly payment as 7,138 TL, a total of 856,000 TL to be repaid. In other words, the total amount paid is 225,000TL and the monthly payment is close to 1.900 TL.
Opportunity to invest
According to real estate experts, this discount is also a good opportunity to invest. It is seen as the perfect time to buy the real estate, which is always seen as a time-saving investment in both long and short term, by installment with low interest rate. Experts believe that the sales figures will remain constant until the home stocks melt, suggesting that the opportunity should be evaluated as soon as possible.