Turks can become homeowners for $175 a month after costs fall – report

Turks can now own a home by paying as little as 1,000 liras ($175) a month, Hürriyet newspaper reported, referring to recent reductions in interest rates and falling house prices.

Local banks are now charging as little as 0.99 percent interest monthly on a mortgage, and a drop in returns on bank deposits means home sales are on the rise as people look for more profitable investments, Hürriyet said.

Turkish house prices have slumped after a currency crisis last summer wreaked havoc on the economy and slashed spending power. Turkish construction firms have been left with a large stock of finished and unfinished properties. Many have applied for bankruptcy protection, while others have applied to banks to restructure their debts.

But Turkey’s state-run banks, supported by the government, have brought down interest rates on mortgage lending, prompting other banks to make their own, lesser reductions.