Offer warning after credit crunch for second home buyers

The representatives of the sector, who evaluated the loan agreement of the Banking Regulation and Supervision Agency (BDDK) for loans for second homes, pointed out that the decision would negatively affect housing production.

The BRSA had reduced the value of home loans that citizens with at least one home can use by 75 percent. If these people want to buy a house worth 5 million Turkish liras, they will be able to use 22.5 percent of the value of the house.

While this restriction on second-home buyers is thought to pave the way for first-time homebuyers, another concern is that the already insufficient supply of homes will further decline.

‘HOUSE FOR RENT AND SECOND-HAND SUPPLY IS SHARED’

İsmail Özcan, Chairman of the Board of Directors of the Association of Real Estate Marketing and Sales Professionals (GAPAS), drew attention to the fact that credit crunch can reduce investment in housing and slow down the pace of the sales cycle , and said that the rate of housing production may decrease.

Pointing to wealthy people who bought new homes and moved here and put their flats up for sale or rent, Özcan said: “Investors being unable to buy their second home due to credit crunch can negatively affect housing supply rent. or affordable second-hand homes.” he said.

Expressing that those who want to rent their houses in the cities by buying their second residence in the seaside resorts will also be blocked, Özcan emphasized that this situation may have a negative impact on the rental market.

SUBSECTORS MAY ALSO BE NEGATIVELY AFFECTED

Özcan stated that this decision may negatively affect real estate consultants, as well as the sub-sectors affected by construction, and continued as follows:

“In the purchases of new and new real estate projects from people who will withdraw protected deposits in foreign currency; People who buy their second home in a province other than that of their residence; People who buy their second home and agree to sell or rent it within 1 year; We think it would be appropriate to improve your credit limits or continue with the old system for those who commit to renting the house they are going to buy.

CONCERN ABOUT ‘IT INFECTS BUSINESSES’

Istanbul Builders Association (IDER) Board Chairman Nazmi Durbakalım noted that this decision would indirectly affect the loans that companies will use.

Durbakalım noted that with the decision he will further reduce the number of mortgage loans used by banks:

“It will also direct those who want to buy their second and third homes to use loans within the company. Depending on the increase in interest rates for loans in the financial sector, the interest rates applied within the company will also be affected indirectly by the risk premium rate increased by the BRSA. can be negatively evaluated.

Another result will be that this decision will complicate the acquisition of investment homes. In other words, the real estate sector, known as a safe haven, will take a step back from alternative investment instruments.

HOPE ‘THE FIRST HOME WILL OPEN AS MUCH AS POSSIBLE’

On the other hand, an important part of the representatives of the sector considers that the decision of the BRSA is positive to maintain the demand for housing at a certain level, avoid the upward trend in sales prices and reduce inflationary pressure.

GAPAS President İsmail Özcan stated that the decision will pave the way for first-time homebuyers: “Decisions to restrict housing loans will increase the homeownership rate, which is usually around 60 percent in Turkey and has decreased to 50 percent. percent in recent years, and will pave the way for our citizens to buy their first home. It is a positive step to open the doors and facilitate their access to financing”.

IF THIS DECISION HAS BEEN MADE INSTEAD OF A CHEAP LOAN DURING THE COVID PERIOD…

Ulvi Özcan, Chairman of the Board of Directors of Istanbul Real Estate Brokers Club Business Cooperative (IstebKOOP), said of the restrictions in question: “It is definitely the right decision, I wish this decision had been made a few years ago. Even dozens of my acquaintances took advantage of the attractive loan opportunity and bought their second and third apartments during the Kovid-19 period. The need to be a social state is to make these movements.” he said.

Emphasizing that there must be a “comprehensive housing policy” for this decision to be effective, Özcan said: “The work done is correct, important and necessary, but not sufficient. I hope that by taking into account similar positive examples in contemporary countries , increase other regulations that will bring benefits,” he made the statement. (BRITISH AUTOMOBILE CLUB)