Could the plunge in the value of the Turkish lira result in foreign investor buying Istanbul apartments, with possible interest coming from Gulf countries etc... ? ------------------------------------------- Investors from the region may start to see value in Istanbul apartments after the near 40 percent depreciation of the local currency against the dollar since January etc.....? --------------------------------------------- On a related matter. If Gulf investors start to see value in Turkey ? What effect if any, will this have on the USD/TRY pair ? -------------------------- ( http://www.arabnews.com/node/1361941/business-economy )
I believe $15 Billion was just invested. I would assume additional investments and stabilization would help slow the trend. I shorted the pair after the spike, and I am now long the pair with a long-term outlook that it will depreciate against a strong us dollar.
I would imagine in the near term it will remain highly volatile as a currency pair so ensure you use prudent money management in your trades. Long term I would imagine property is a fantastic buy in Turkey with foreign investors looking to take advantage of the weak Lira. I'm thinking 10-20 year view. Would make a great holiday home or buy to let investment. Do you due diligence on checking yields on buy to let etc.
for owners property values are calculated in dollars/euros. the question to ask is there a sudden increase in the supply of apartments for sale, for whatever reason, which would depress prices. In Greece, property values dropped 43% during the crisis but it is a different situation.
Don't forget, the financial capital of the Middle East in the 1970s was a peaceful, tolerent, multi-relgious country called Lebanon. As things started to go south there I'm sure there were some great buys on apartments in Beruit. Great buys until they got hit by mortar rounds later on at least. Remember, it can always get worse.
accidentally, there is a gem of advice in his post. he who is clever enough to recognize it please post it or PM me.
Are you saying 1970's Lebanon is current USA ? (peaceful, tolerent?, multi-religious, financial capital for sure. Don't know Lebanon ever was financial capital, atleast it was playground for Arabs)
you should be doing it with every trade not just a turkish lira trade. anybody would like to give odds the italian lira wil replace the euro in Italy in the next 3 years?
your long term bet is requiring two conditions. you have a higher probability of being right if you had left out the word strong.