turkey is trying to improve its real estate sector. A fundamental tool for this improvement is the establishing a working financial mechanism. the new mortgage law draft attempts to address this issue. yet, the new law can only be effective if it does listen to economic realities. the first one is the answer to the question who gains and who loses. seemingly, there won't be much benefit for consumer, except a small tax-exemption. in a market where demand is very high with respect to supply, this tax-exemption will easily find its way to house prices. the law easens the legal procedures for collecting unpaid funds, by leaving the property ownership in the hand of mortgage company. More importantly, banks will have more opportunities to use these assets in secondary markets, such as real estate investment markets. in the end, it is understandable why banks and real estate agencies support the bill, yet there seems no plausible reason why should consumer should support it.
this is the first entry of my blog