Does politics play a part in your property investment decision process?

[nmb]

Over the last few months the political situation in Turkey has changed dramatically with a number of terrorist atrocities. We also had the coup which nearly ejected the sitting Prime Minister with the army set to take control. This coup was eventually overturned but many are now questioning the political arena in Turkey and whether it is fair and proper.

Does/should politics play a part in your property investment decision process?

 

[PostBrexitInvestor]

Politics is just one element of the property investment process along with economics, property prices, affordability, prospects for the future and many other elements. Missing out one of these elements could bring your investment decision crashing down at some point in the future.

 

[nmb]

In many ways UK political decisions seem to be based upon what is best for London and the South of England, where business and property markets are more prominent, leaving areas such as the North of England fighting for the investment scraps.

 

[Deniz Pehlivan]

Politics have largely efekt on property investment in Turkey. Turkey has no stability in many respects as a European country. Rates flactues far more than any country in europe. Therefore People fist look at current political situations.

 

[realdeals]

Hi @Deniz Pehlivan many thanks for your input on this thread which kind of rubber stamps the general consensus. Where there is a stable political scene this has little relevance on property market investments but when the political scene is unstable many investors will hold back. It is difficult to see which way Turkey will go at this moment in time because there is so much going on.

 

[Deniz Pehlivan]

Sürely you are right. İ bed three Will not be any stability in Turkey as in europe in near future. Peoples assumptions in Turkey slightly different, Wè really get used to Thèse conditions in Turkey and People still making their investments. İ sugges to investers from abroad, dont expect everything is going to settle down and dont wait to invest in Turkey, sometimes such conditions is a plus för investers. As long as you go för Thé right property, there is much more profit margin in turkey than any European country.

 

[PostBrexitInvestor]

Which areas of Turkey would you would invest in and what types of property offer the best returns?

 

[Deniz Pehlivan]

İt is better to stick on New projects. There is something quite unique in Turkey. İn law building Contractors allowed to sell their properties even before start. As long as Contractors's projects excepted by local officials and prove thé qualification and prove their sufficiancy officially with banks etc, they can sell their projects from visualized pictures. İnvestors know exact which property they're invest and which flat and even know what is the door number and have their official document deeds (tapu).

This way Contractors able to increase their liquidity position.

İn order to increase liquidity Contractors keep their profit margin very low at the beginning of constraction start.

So just better to look good located New projects and do not hessitate to invest on visualized pictures as long as you are süre about the building Contractor company.

 

[nmb]

If you invest at a relatively early stage in these types of developments can you obtain an attractive purchase price? In my mind, the risk/reward ratio at this early stage would need to be compensated by a relatively low purchase price.

 

[Deniz Pehlivan]

Yes surely, that's what I am saying

 

[Longterminvestor]

Surely the risk/reward ratio should move in favour of investors with all of the ongoing turmoil and political upheaval?