Author Topic: Should we invest?  (Read 9307 times)

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Offline sue mac

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Should we invest?
« on: May 19, 2015, 14:15:20 PM »
We have recently sold a property in uk which we rented out. We now have money sitting in a uk bank account paying approx 0.01% interest! I am wondering if now is a good time to invest a few thousand in turkey? In view of the current exchange rate, and the interest rates, could anybody advise me on the best place to invest for a monthly interest that I could withdraw when I am over on my Easter and summer holidays?  I am thinking of investing around £25000 either in joint names or split equally between two accounts, one in my name and one in my spouses. How do I get the £25000 into turkey and invest it in lira Ie approx 100000 TL at present? I am based in fethiye, so would need a bank in fethiye. Many thanks for info.

Offline JohnF

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Re: Should we invest?
« Reply #1 on: May 19, 2015, 14:21:52 PM »
Just send the £25k to me and I'll send you back £15k in six months time.  No awkward transfers and I won't even look for a management fee.   :)

JF

Offline Colwyn

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Re: Should we invest?
« Reply #2 on: May 19, 2015, 14:50:11 PM »
sue mac
If JohnF had been rather less pithy he might have said it ain't the smartest thing to decide on investing £25k based on what people on a forum might say. Actually, I guess you'll be making up your mind based on rather better research than that. I never advise anyone on investing, but here's a couple of calculations to consider:

1. In the UK, open a Santander 123 current account and transfer your direct debits there. This pays 3% up to £20k. The sum is: 3% less tax (at 20%) is 2.4% take inflation into account (-0.1%) = 2.5% increase.

2. In Turkey, open an account with a bank that pays 9% less tax (at 15%) is 7.65% then take inflation into account at 7.9% = -0.25% = 0.25% loss.

There are UK accountsthat pay better than Santander and there are also lots of ISAs (cash and stocks&shares that don't pay tax). You have plenty of choice.

Offline sue mac

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Re: Should we invest?
« Reply #3 on: May 19, 2015, 15:09:11 PM »
Thanks colwyn....obviously I am not going to make my decisions purely on answers on here....I'm just after a few different opinions. Some people you speak to reckon its a no brainer, others wouldn't put a penny into the country. ..I've got the Santander 123 account and will be maximising ISAs.  I'm lucky that the £25000 is only a small portion of the sale money. I'm also paying off our mortgage. This may sound stupid, but if I am leaving the money there to draw out the interest on my two visits per year, how am I affected by the high inflation? I don't live there, and am not purchasing on a daily basis. Interest of 7% + seems a decent rate to get me a few thousand lira spending money every July. .....? Thanks again

Offline Colwyn

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Re: Should we invest?
« Reply #4 on: May 19, 2015, 15:20:47 PM »
If you are buying goods and services in Turkey you will pay Turkish inflation. If you had kept your money nice and safe in Sterling on 19th May last year your £ would buy over 14% more TL today. So you wouldn't have to worry about 7.9% inflation since you'd still be ahead.

Offline littlereddevil

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Re: Should we invest?
« Reply #5 on: May 19, 2015, 17:29:53 PM »
And the Turkish banks I have used make regular charges, so these soon bring the capital down

Offline sue mac

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Re: Should we invest?
« Reply #6 on: May 21, 2015, 17:05:43 PM »
Most of the Turks reckon the lira will drop after the elections.....what's your view on this? Not holding anybody to ransom, just want the general opinion!?

Offline Colwyn

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Re: Should we invest?
« Reply #7 on: May 21, 2015, 17:41:51 PM »
I wonder what currency these Turks hold their savings in? Or bullion.of course.

Offline Jacqui Harvey

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Re: Should we invest?
« Reply #8 on: May 21, 2015, 18:00:04 PM »
We have some money in a Turkish Bank, and have made good interest on it in the past. 

Offline Yoshi

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Re: Should we invest?
« Reply #9 on: May 21, 2015, 20:11:36 PM »
Hello,
We are also considering investing in Turkey
Littlereddevil can you elaborate on what these charges are or and the bank your with.
Thank you in advance.




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