How will the lower interest rates affect you

Pipie


Joined: 05/01/2008
Posts: 5499

Message Posted:
06/10/2009 18:31

It will be interesting to hear members views on this .

What effect do you think the lower interest will have on the TRNC ? and will it affect you living in the TRNC to the point that you will consider moving ?

WotNoDeeds!


Joined: 26/08/2009
Posts: 687

Message Posted:
06/10/2009 18:50

I know people who rely on the interest to pay there rent here and needless to say now the interest rates have fallen to about 7% they are struggling to cover it and are considering moving out of the T.R.N.C so it does have a knock on effect, I took my money out of Cyprus a year ago and invested it back in the U.K. and I'm glad I did. the interest drop doesn't really affect me because I don't rely on that income for living but a lot of people do to some extent maybe using it to boost there pension ?

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
06/10/2009 19:28

Message 2. Without being too personal where can you invest your money safely in the UK and get a return of at least 7%

Dixie Normus


Joined: 22/02/2008
Posts: 820

Message Posted:
06/10/2009 19:30

The interest was cream on the cake, if you came over here relying on it you were a fool. No doubt the rate will fall further as banks are instructed by the goverment and Turkey to make lending more attractive in an attemp to stimulate growth in the economy, this can only lead to futher trouble as locals have few morals where debts are concerned which will probably leave those lenders in the crap. The next couple of years will be tough on the TRNC with only a major bail out from the mainland or a sell out to the bubbles that will save their bacon.



D.N

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
06/10/2009 19:34

Dixie. I hope you are wrong about the 'sell out' !

WotNoDeeds!


Joined: 26/08/2009
Posts: 687

Message Posted:
06/10/2009 19:37

Hello No1Doyen



I invested in property in London, if you have cash and invest wisely you can make that on property in the U.K. I had to put the work in but the returns can be good if you know your market.

natalie


Joined: 03/05/2009
Posts: 323

Message Posted:
06/10/2009 21:14

Thankfully not a lot. However bought stg to day and made a tidy sum!

Lilli



Joined: 21/07/2008
Posts: 13081

Message Posted:
07/10/2009 00:06

My son in lawa is stockbroker and begged us not to invest here how right was he. I tried to sell him the benefits of investing here I thank God he did not take my advice xx

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
07/10/2009 00:17

If the TRNC was a good place to invest you would see investors flocking here from across the globe. The majority of the local population are employed (it seems to me) in government positions, on inflation proof wages or pensions. What incentive is there for change?

Lazy days


Joined: 24/07/2008
Posts: 847

Message Posted:
07/10/2009 07:48

It will not have any effect on us what so ever, as we properly planned ahead and didn't jump in with 2 feet, however it may make some stop and think about selling up in England and moving here, that has to be good for those of us who are here just now, we can enjoy what we have without any more moving here and having to work on the black market to sustain themselves

johndp


Joined: 08/09/2009
Posts: 497

Message Posted:
07/10/2009 12:27

I think in the short term the prices will stay the same or go down but in 5or6 years time property will start to rise again, doubt if the intrest rates will ever go up to 20% again tho.

Theres a lot of investors on cyprus who are currently selling at a loss just to get some of there money out, but guess i will hang on in, in hope!!

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
07/10/2009 12:43

Am sure that interest rates will rise next year when countries feel that they are over the recession, has to happen. Australia increased their interest rates this week.

waddo


Joined: 29/11/2008
Posts: 1966

Message Posted:
07/10/2009 13:18

No effect on us at all. Never had any money when we came and don't have any now so no change. We are here for good anyway so the long term plans were made years and years ago - they have not changed so neither have we - skint and happy in the TRNC.

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
07/10/2009 14:27

mess 13 - a very strong contender of the "Neg Nick post of the year"....



Well done !

melbrandy


Joined: 23/08/2009
Posts: 44

Message Posted:
07/10/2009 14:28

Same effect for a lot of people i suspect. I will be cutting down even more on my expenses and looking to maximise my income.

Thankfully there are a number of ways of doing the latter without taking on more risk than i already have with my tl bank deposit accounts.

Grin and bear it, TL interest rates probably have around 1/2% to 1% reduction left this year and will then start going back up next year, though at a slow pace.Given the huge and growing current account deficit of Turkey, they have to follow up on interest rate increases by other countries.

RBA Australia was the first country to put their rates up yesterday afternoon.

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
07/10/2009 14:29

mess 12 - Eager, they could possibly rise, but many many people planned their future round 20% + interest rates....



I reccon that they'll be down here to 5-6% by early next year - even if they rise to 7-8%, that is still leaving shed loads of people short changed....

judyr


Joined: 07/07/2009
Posts: 956

Message Posted:
07/10/2009 14:40

the 5-6% and 7-8% are you referring to Turkish Lira accounts here? Planning to move out next year having just bought a house in Ozankoy... and still trying to sort out finances - having to seel up in the UK first though and plan to live off the leftovers which sounds less attractive each time I come on this site! Any suggestions on the best option if say I have £100k to invest and also live off? thanks

ROBnJO


Joined: 30/06/2008
Posts: 1289

Message Posted:
07/10/2009 14:47

A lot depends on inflation rates.



If NC inflation is 5% and savings rates are 7%, it's positive,.... and vice versa!

ROBnJO


Joined: 30/06/2008
Posts: 1289

Message Posted:
07/10/2009 15:07

judyr



Compare it to living off the £100k in the UK.



NC still an attractive option.



Rob

judyr


Joined: 07/07/2009
Posts: 956

Message Posted:
07/10/2009 15:10

Do you think it is realistically "doable" and then in 9 years work pensions etc come in .....?

ROBnJO


Joined: 30/06/2008
Posts: 1289

Message Posted:
07/10/2009 15:26

judyr



No easy answer I'm afraid, it all depends on lifestyle.



If you buy & cook local produce is season, you can save a lot on food bills. If you use a thick duvet, slippers and warm clothing in winter as well as avoiding using too much heating,.. etc,....





Getting by on a small income in NC is still possible compared to the UK.



Rob

Woodspeckie


Joined: 25/01/2009
Posts: 2263

Message Posted:
07/10/2009 16:07

What about the air conditioning in Summer, costs more to keep cool then than in Winter to keep warm I believe. Just stayed with friends in Ozankoy they got a bill for £250 for the month of August.

judyr


Joined: 07/07/2009
Posts: 956

Message Posted:
07/10/2009 16:16

Thanks Rob ... ok a question for you .... 2 of us wanting a fairly good lifestyle not overly extravagant but would want a couple of trips back to the UK each year - what would you say budget per month, all in.... would £100k last us 9 years, obviously accruing some interest?

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
07/10/2009 16:49

Woodspeckie what about the air conditioning in Summer? I've lived here for over 2 years now and can count on the fingers on one hand how many times I have used my air con this Summer and it's not because I'm tight (although I am on builders electric so it is a big consideration). I honestly believe that a lot of it is in the mind and people are programmed to think they must use air con all of the time. Maybe we are lucky in the position of our house (nearish to the sea and bedroom being West facing) as we seem to get a night-time breeze more often than not. My advice would be to get a ceiling fan. Cheaper than air con and you don't wake up with a sore throat.

MotoMoto


Joined: 15/02/2009
Posts: 152

Message Posted:
07/10/2009 18:51

Iktisatbank currently 11.5%, so you net 10% plus on a TL deposit account. Turkey central bank rates (currently 7.25% I believe) cannot fall much further due to increases in other territories e.g. Australia



So realistically you can estimate £9-10,000 p.a. in interest, reducing as you utilise your capital on occasions



Keep around 20,000 euro's equivalent in each account - say 5 seperate accounts, and funds are safe

waddo


Joined: 29/11/2008
Posts: 1966

Message Posted:
07/10/2009 21:10

Nick,

Thanks! Can not help it, I just love that old saying: "I started off with nothing and I still have most of it left".



Don't think I am alone out here either, bet there are plenty of us in the same boat with little income, enough but none to waste rather. We just all get along in our own ways and enjoy life without having to live on the edge anymore. No longer a need to impress others just a life of quiet happiness where we can help as we go along where we can. No worry that people stop talking to us as they move on in their own ways and no worry about people talking about us either - it is a good life if you just go with the flow and try to enjoy it for what it is instead of trying to change it for what you think it should be.



Have fun out there, its the only life you get and it ain't a practise after all!

Ailletoo


Joined: 24/01/2009
Posts: 1003

Message Posted:
07/10/2009 21:33

I like that saying... 'I started out with nothing and still have most of it left'. That's me too! I'm still smiling.

chinaeyes


Joined: 13/02/2009
Posts: 425

Message Posted:
08/10/2009 08:27

Waddo,message 26

Took the words right out of my mouth,we also lead a simple life out here,our choice.WE have fantasic friends and eat at each others houses.

Maybe we could share a teabag or two one of these days.hahahahaha