Fear of a new rise in housing prices: How does it affect interest prices according to rent?

The fact that a new housing loan campaign with different interest rates depending on the income of citizens will be announced in the coming days has created new concern about the rise in housing prices.

It is claimed that the revival of demand with low interest loans will increase house prices when there is not enough housing production and the existing housing stock has also melted.

Real estate appraiser Ahmet Büyükduman, speaking to Sozcu.com.tr, said that any policy that strengthens demand in a market where supply is not enough will only increase prices, while Eva Gayrimenkul Değerleme General Manager Cansel Turgut Yazıcı noted that This step, which will bring dynamism to the market, will translate into an increase in prices.

The president of the Confederation of Construction Contractors (IMKON), Tahir Tellioğlu, stated that the aforementioned increases will be made in regions with housing and will be in the 5 percent band.

DIFFERENT INTEREST FOR THE LOW, MEDIUM AND UPPER CLASS

The Treasury and Finance Ministry met with the contractors in the middle of this month and received expectations regarding the housing loan campaign, which is expected to be announced in December, as well as the problems in the sector.

First of all, according to information in the news from Leyla İlhan of How One Economy the day before, a new housing loan campaign will start in December and these loans will be offered with three different interest rates depending on the income of the citizen.

İMKON Chairman Tellioğlu stated that a new housing loan campaign with three different interest rates for low-, middle- and high-income people will be announced at the meeting, and the interest rates in the campaign are expected to be in the range of 0.69 to 1.20, although it is not yet clear.

IMKON: CONSUME AT LEAST 5 PERCENT

Tellioğlu stated that they support the new package that will be announced, but are concerned that it will negatively affect house prices, saying, “The prices of houses whose prices are between 500 thousand TL and 3 million TL will increase. However, these increases are regional and occur where there is a housing stock. It will not be the same for all floors. I predict there will be a 5 percent increase on average,” he said.

‘LACK OF SUFFICIENT PRODUCTION, INCREASES PRICES’

Real estate appraiser Ahmet Büyükduman, for his part, stressed that reductions in loan interest rates always push prices up and suggested that the resource be used to accelerate housing supply instead of stimulating demand.

Büyükduman said: “Any policy that strengthens demand in a market where supply is not sufficient will only increase prices” and said: “If a loan is given now, it is necessary to accelerate the supply by targeting houses that are under construction or almost finished, not second-hand houses that are finished. This limits price increases and makes it easier for people to access housing,” he said.

‘IT MEANS TRANSFER OF MONEY TO NON-TAX RESPONSIBILITY’

Büyükduman also pointed out that the fact that different loans are offered according to the income of the citizen will create different problems.

“There is serious informality in Turkey. Büyükduman said, “There are people with high incomes who don’t declare their income,” saying, “These people are also not oppressed against inflation. With the service they provide they manage to maintain the price of goods and protect their own purchasing power and do not pay taxes because they work informally and do not issue invoices.

Giving credit according to income level means transferring money from taxpayers’ pockets to people who are not taxpayers and do not contribute to society through their income.

‘THEY THINK LIKE THE 2020 CAMPAIGN WILL BE DISAPPOINTED’

Eva Real Estate Appraisal General Manager Cansel Turgut Yazıcı said that those who think that the new loan package to be announced will be like the low-interest loans provided by public banks in 2020 will be disappointed.

“I think those who think of this campaign as the 2020 campaign will be disappointed. Because there are no shares on the market like in that period, there are no pending properties,” Yazıcı said that the package will revive the market, but it will also increase prices.

Yazıcı said: “Access to home loans is a very difficult time, and the new campaign will ease those who want to buy a home in the market. I think there will be movement in the market when access to credit opens. But prices will also increase.

However, there is also this: it should not be thought of as simply buying a house. Those who change houses, if possible, change electrical appliances, curtains, seats, the transport sector does business, many wheels on the wheel are working. many sectors are reviving”.

ERDOĞAN ANNOUNCED IN MAY, BUT NO ACCESS TO LOAN

On the other hand, the government is preparing for a new housing loan, but it has only been 5 months since the last housing loan packages announced by President Tayyip Erdoğan.

With three separate packages announced by Erdoğan in May, home loan interest rates fell to the range of 0.89-0.99 percent.

Immediately after the announcement of this package, attention was drawn to price increases in ads for houses for sale; House prices, which had risen more than 100 percent in a year, rose at least 5 percent after the announced package.

At this point, access to these loans is limited to TL 250-300,000. In other words, even if the citizen wants to take one of these loans, the bank grants housing loans up to a maximum of 300,000 TL.

IMKON President Tellioğlu says they support a new loan package, but problems with accessing credit must first be removed:

“Normally, as a requirement of the real estate market, citizens should be able to use the credit they need while buying real estate. You buy a house of 5 million lira, 2 million is needed, but a very limited loan is given or not given at all. This is an injustice and this injustice must be corrected first.”