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How to tackle inflation in 2023

Navigating Economic Turbulence: Real Estate as a Hedge Against Inflation

By

Hamza Laalioui

Posted in Buyer Guide, Comfort, Economy, Investment, Real Estate On

Navigating Economic Turbulence: Real Estate as a Hedge Against Inflation

Global economic indicators have been distressing, with troubling news of inflation impacting many investors’ portfolios. The rising tide of global inflation, surpassing the 1980 crisis and the subsequent rise in interest by major central banks like the US Federal Reserve, casts shadows of impending unemployment and economic recession. Financial moguls, including Jamie Dimon of JPMorgan Chase, are among the 80% of global experts voicing these concerns.

Understanding Economic Terms:

  • Inflation: Rising prices due to increased demand across products and services.
  • Recession: A precarious situation marked by stable prices but decreasing demand, leading to manufacturing dips and unemployment.

The Age-old Debate: Gold or Digital Currencies?

Gold, historically a reliable investment, has been disappointing recently. With global inflation weakening the US dollar, gold’s value, which typically moves inversely to the dollar, has dwindled. The last six months alone saw a nearly 15% decrease in gold prices.

Meanwhile, digital currencies, hailed by many as modern investment marvels, face their share of skepticism regarding their credibility.

Real Estate: A Timeless Investment

When navigating such turbulent financial waters, the primary goal should be preserving the value of one’s investments. Real estate emerges as a consistent favorite. Banks prefer tangible assets like real estate over volatile stocks or digital currencies. If you intend to secure a loan to buy stocks, you’d likely face more scrutiny than if you sought a mortgage for a property.

Tips for Real Estate Investment Amidst Inflation:

  1. Project Maturity: While projects under construction can be profitable, considering the current economic climate, opt for near-completion or ready properties.
  2. Location Over Size: Prioritize a property’s location and its potential for rent or resale.
  3. Avoid Price Assumptions: Don’t presume a property’s price has peaked. Study market dynamics and consult real estate experts.
  4. Act Now: In these uncertain times, securing an investment property is crucial. If you’re in Istanbul, don’t delay in identifying viable investment properties.
  5. Professional Guidance: Engage a broker who can offer both real estate insights and broader economic perspectives to inform your investment decisions.

Need Expert Advice? At Prestij Consulting, we’re ready to guide you through the real estate investment landscape. Contact us anytime for the best deals.

Guide to Buying Property in Turkey Over the last 15 years, Turkey has been a popular destination for foreigners looking to purchase a property or start a business. The reason for the rush to buy property in Turkey was that it provided extremely cheap property choices compared to several European nations. Even in 2021, you may still get decent or even better offers because the country guarantees a safe and comfortable lifestyle accompanied by excellent climatic conditions at affordable pricing. There were a few real estate horror stories of people who acquired properties in Turkey, especially in the early years of the real estate boom. After purchase, some customers learned that they did not receive what they expected or that the owner had sold the property to other buyers. There were even reports of people being scammed and receiving nothing in return for their so-called "investment." The huge majority of property purchase transactions in Turkey were completed smoothly, and the majority of customers were pleased with their investment; however, these rare situations in which things did not go as planned were emphasized in internet forums, etc. As a result, they affected negatively the whole Turkish housing market and real estate agents. Fortunately, rising foreign investment has forced the government to strengthen controls and enhance penalties to prevent real estate fraud. These issues have largely been eliminated as required procedures have been adopted. However, this does not mean that everything is secured or that the purchasing procedure is simple. Purchasing property in Turkey is fairly safe and simple if you do things correctly and deal with a competent real estate company that understands what they are doing. The first and most important step is to find a qualified company with reputable lawyers. A competent real estate company provides purchasers with a greater sense of security, which is particularly important when buying a property abroad. A title deed, for example, is the most important component of this procedure. Before promoting the property, your real estate agent should verify the title document to see if the seller is the original owner. They should also look into whether the title deeds are collateral for any loans or if the owner has any outstanding debts that you may be responsible for if you acquire the property. In brief, you should conduct research on the company for which you will be working to make sure that they are trustworthy. There are several questions you must ask. How long have they been in this sector? Do you know anybody who purchased a property from them? Do they have a physical location and a website? You should also deal with a local real estate agent who speaks your language well or with whom you can communicate effectively if you share English as a second language, for example. So we know that language is vital in order to avoid buyer confusion. If you do these things correctly, it is just as safe to buy property in Turkey as it is in any other country with high professional standards. The Top Valued Districts in Istanbul: A Guide to Besiktas, Sariyer, and Kadikoy Istanbul’s Prime Districts: Discovering Besiktas, Sariyer, and Kadikoy
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