Foreigners in Trouble

[angryumpire]

Foreigners, who bought houses in tourism areas in the West, such as Marmaris, Fethiye, Bodrum and Didim, have begun to sell their villas as they can no longer repay their mortgage debts, according to a report by a local newspaper.

The mortgage crisis has forced expatriates in Turkey to sell their houses, a local newspaper in the Aegean region has reported.

According to the local newspaper Yeni Asýr, foreigners who bought houses and settled in Fethiye, Marmaris, Bodrum, and Didim have put up their house for sale as they can no longer afford to pay monthly repayments. Some houses on the other hand have been put up for sale by the banks.

"There are almost 10,000 ready houses in Mugla, however, people are not willing to buy houses at this time. The construction sector has come to a standstill," said Ýlhan Açýkgöz, the chairman of the South Aegean Tourism Facilities and Hotels Union, or GETOB.

Some 2,500 houses out of 6,500 owned by British citizens in Fethiye district are on sale. Some foreigners have started to use their villas as bed and breakfasts in order to ensure some revenue, while some others have already sold their houses. Some 200 English residents sold their houses in Didim.

[bickern]

I hate to be negative but the thing is, it was interest rates that went down not wages, so I can't really believe it.

Of course banning foreigners from buying then when it is nicely sorted, doing it again and the rest of the problems have nothing to do with it.

[angryumpire]

I believe the reasons are not as simple as that, there are numerous problems, namely;

1) Brits taking out loans, at fixed rate interest, probably 8-10 % or more, to purchase property in Turkey.
2) Rental Income not as forthcoming on holiday homes as they thought, to help offset the loan repayments.
3) The UK State Pension, without additional income, is not enough to live on comfortably in Turkey, and pay all the Bills.
4) Brits under retirement age sold their UK homes, bought a house in Turkey, and invested the balance in a High Interest Deposit Lira Account. With the interest rate dropping to 10% after tax, they are not generating enough income to afford to live in Turkey.
5) People are concerned about losing their jobs, if not already lost them, and shortage of disposable income.

I believe you need a minimum 150k lira in a deposit account, at current rates, to generate enough income to have a comfortable lifestyle without additional income, and the low interest rate in the UK is not a governing factor within the current situation.


This problem doesn't apply just to Brits in Turkey, but in other parts of Europe as well.

[bickern]

good points