Incredibly high yield with Turkish interest rates

[mickthepropertyguru]

Iv been doing some research into Turkish interest rates in Banks and they seem to be over 10%.
The best you can get in Ireland is 5.7 AER Gross.
Has anybody a bank account in Turkey and what yields are you getting ?
Is the money guaranteed ?
As far as i can see, there would be CGT of 25% if invested less than 5 years and a further 20% in Ireland as there is no dual taxation with the two.
I pretty sure Turkey has dual taxation with the UK.

 

[rowlandsbb]

High interest means high risk!!....basic economics

That is why the interbank rate is high at the moment.....all banks thinks the others are high risk..will change soon and then we can all get back to some sort of normal economy.......recovery best bet in property is circa mid 2010

Now putting your money in Turkey....cash or property.....are you serious just now!!!

At least the Spanish banks have not got themselves in a mess like most others!!

But in Spain the market is static just like UK.....and any decent agent can find you a good buy but the best buys in the best location are not always easy to find

Dealers can look after themselves, first time dealers should keep their money in their pocket [ or bank if it is safe!]
Life style buyers, well .....what a good time to buy if you can afford it ..but as always treat buying in Spain the same as in UK ....no risks

Why Spain....sun sea and ?......but the life style has not changed and it is an established EU economy with safe banks so it is one of the main sensible locations

Like all other professional agents, we can find you a good deal for that life style home in the sun.....holiday home , part or full time living

 

[mickthepropertyguru]

High interest means high risk!!....basic economics

That is why the interbank rate is high at the moment.....all banks thinks the others are high risk..will change soon and then we can all get back to some sort of normal economy.......recovery best bet in property is circa mid 2010

Now putting your money in Turkey....cash or property.....are you serious just now!!!

At least the Spanish banks have not got themselves in a mess like most others!!

But in Spain the market is static just like UK.....and any decent agent can find you a good buy but the best buys in the best location are not always easy to find

Dealers can look after themselves, first time dealers should keep their money in their pocket [ or bank if it is safe!]
Life style buyers, well .....what a good time to buy if you can afford it ..but as always treat buying in Spain the same as in UK ....no risks

Why Spain....sun sea and ?......but the life style has not changed and it is an established EU economy with safe banks so it is one of the main sensible locations

Like all other professional agents, we can find you a good deal for that life style home in the sun.....holiday home , part or full time living

To be honest, any bank offering 15% or more anywhere would be very interesting and i would indeed like to find out all about it, would i invest.....who knows, but knowledge is power. But if it ticked all my boxes (and trust me there are many),i would have no hesitation in investing money in a bank in Turkey.

 

[andyk2]

Mick - you are half right (so are you Brian)

Guru - the Turkish Lira lost 25% of its value against the Euro earlier this year, and then it made it up (so now the value is what it was at the start of the year).

I would love to borrow in Japan and invest in South Africa and live off the interest differential for the rest of my life - sadly there are too many if´s, but´s and laws preventing this.

A lot of ex-pats who live in Turkey have a nice exsistence just living off the interest that they get from depositing a lump sum in a Turkish bank, but if you are considering doing it as a money making venture, you had better have the valium ready because you may be in for a rocky ride.

Like you advocate to many of the investors you advise on this forum, decide what you investment strategy and tolerance to risk is before you go jumping in with both feet.

Brian is right about the low risk approach, provided you don´t let your heart rule your head. Too many people invested in North facing apartments on the back of a Spanish mountain and then wondered why nobody wanted to buy them on completion.

Happy investing

Andy

 

[mickthepropertyguru]

Thanks for the info andyk2, to be honest i don't know half of the risks involved yet but hoping to learn more from others. It is indeed very high risk but so to is the stock market where many invest also. But you are right, you need to have all the parameters set out, strategy, risk etc before even thinking about investing.
Would i invest..........definitely not yet as i don't know enough about it, nowhere near actually but its is incredibly interesting none the less.
http://www.exchange-rates.org/Chart.aspx?iso_code=TRY&base_iso_code=EUR&mode=G&filter=180