Welcome to today’s email…
We keep being asked the same question about Turkey – where are Brits buying? Recent figures from the Statistical Institute reveal the know-how. There were 1.1million property purchases in 2013 and about 1 per cent of these were by foreigners. Antalya saw the most overseas sales in 2013 at 5,548. Istanbul came next with 2,447 sales followed by Aydin at 1,112, Mulga at 1,053 and Mersin at 545.
Investors are looking at Istanbul. Julian Walker at Spot Blue, quoted in OPP Connect, says, ‘Buyers from the Gulf Co-operation Countries and the Middle East are purchasing in Istanbul. Everybody is buying property for an investment point of view. Thirty to forty years ago, people were not so conscious of this and the market has not grown as aggressively to make money. But today people are buying for a lifestyle purpose with an eye on investment.’ More to come? A show of hands please.
I had a meeting with a financial whizz in London on Tuesday and it may be of interest to you if you are buying into the UK from overseas and want to know the best way to structure your purchase to minimise tax etc. Are you? Do you? Drop me a line and we will see if we can put you in touch with each other.
The latest currencies review – sterling/euro – is due in from Peter Lavelle at Pure FX later today. If you’d like to receive it, and this is surely a must-read if you are exchanging currencies soon, please email back. We will send it on as soon as we receive it.
Getting better – but a way to go yet! The latest report from Zillow offers more good news for the US property market; there are now 19.4 per cent of home owners in negative equity there; i.e. their mortgage is higher than the value of the property. That percentage has now fallen for seven quarters in succession. It was, at one point, close to 30 per cent.
‘We’ve reached an important milestone as negative equity has fallen below 20 per cent nationwide which has helped free up marginally more inventory and contribute to further stabilisation of the market. But a number of headwinds will prevent negative equity from falling at the kind of sustained, rapid pace we need before the market can completely return to normal, and it remains roughly four times what it is in a healthier market. High negative equity is just another sign of how distorted the market continues to be, and how far we still have to go on the road back to normal.’
All for now, see you on Friday.