Last Updated on 11/03/2023
At the beginning of the year 2023, The Turkish government launched at the beginning of January a low-rate mortgage program under the name of My new home giving middle-income people the chance to become house owners. Keep reading to know more details about the conditions of the campaign and its advantages.
My new Home housing finance program
My New Home Housing Finance is a mortgage campaign involving middle-class Turkish citizens. The campaign has certain restrictions as well, but it also has some very appealing terms, such as a 0.69% interest rate, a maximum period of 15 years, and a 10% down payment requirement. The new housing loan campaign is extremely reasonable comprehensive and aims the benefit of the citizens who would most benefit from it and will make a positive contribution to the industry.
Eligibility for the “ My New Home” housing finance program
The newly launched campaign requires certain conditions for Turkish citizens to be able to benefit from it.
In fact, people who will profit from the housing campaign cannot have recently sold a home in the province where they intend to purchase a home. Moreover, purchased properties within this campaign cannot be sold for five years. Furthermore, the maximum maturity is 15 years, and the minimum down payment is 10%. Besides, contractors will receive a TL25 billion (US$1.3 billion) government-backed loan.
The beneficial impact on the Turkish real estate sector
The new campaign My new home has been well thought out. It intends the benefit of the citizen who genuinely needs it and will positively affect the Turkish real estate market.
Moreover, although claiming that the new loan campaign’s terms are very appealing, it is appropriate to include some usage requirements to make sure that the target demographic uses them. In fact, the campaign mainly intends to house 100,000 families.
Moreover, we have been stating for some time that the loss in supply is one of the key factors contributing to the increase in house prices. The annual value increase for house sales prices in Turkey as of the end of December was 185%, and the annual value increase for rental values was 160%. Only 30% of residential transactions in 2022 involved zero housing sales. Therefore, it is clear that this campaign also aims to hasten the sale and creation of first-sale houses and this would be a beneficial development for the real estate sector.
Will the campaign cause properties prices increase?
Furthermore, obviously, the primary issue with the housing market is that prices and rental rates are too high, especially for middle-class and low-income individuals. In this regard, the housing market shouldn’t see price increases as a result of the accessibility campaign. In fact, the government emphasized that it won’t accept irrelevant pricing to market reality in terms of price mechanisms. We consider that a healthy market’s supply-demand balance is just as crucial to the middle- and low-income segment’s access to housing as the simplicity of financing. Subsidiary regulation is highlighted in this regard when lending money to construction companies.
Turkey’s real estate market is booming and continuously changing. As a result, it makes sense to keep an eye on the market trends and examine its behavior over a long period of time. The experts at MEO Consultants can provide you with extensive guidance if you consider investing in Turkish real estate.
Check out our services. For better support, don’t hesitate to request a risk-free initial consultation.
