Travels
In Turkey
A Visual Feast ~ by
James J. Hickman
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“Why
would you want to go there?”
It was the
question I heard for weeks leading up to my trip… I vowed next time to
keep my mouth shut.
“It’s supposed
to be dangerous there…”
Oh? And you
know this because . . . ?
I always find
it interesting how people form opinions on matters they have no experience
with. Having traveled to some of the more off-beat places in the world
(Nicaragua, Panama, Peru, Saudi Arabia, etc.), I’m constantly subjected
to ‘expert’ analysis from the world’s most opinionated armchair travelers.
Conventional wisdom on Turkey, it seemed, was no different.
I was on a
mission for my company: to seek sound, safe international investment opportunities
in an overlooked country. Turkey is beyond overlooked. It is criminally
neglected. The comparably immense population is young, motivated, and entrepreneurial.
The government is pro-business and keen to attract foreign investment.
Sound familiar? While the rest of the world is happily seduced by tales
of 21st Century Chinese dominance, Turkey quietly grows in the shadows,
preparing to one day emerge as a major economic influence. It took years
for the rest of the world to recognize the potential of China as a global
powerhouse. Now everyone from CNBC analysts to the local shoeshine boys
talk of the wondrous prospects in Shanghai. Rule of thumb: Once an
opportunity goes mainstream it ceases to be an opportunity.
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Fishermen
on the Bosophoros River, Istanbul
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Flying
in to Attaturk International Airport in Istanbul, I hadn’t yet formed an
opinion (I rarely read travel books so as not to bias myself); I remembered
the first time I flew to Argentina last year - before landing, the flight
attendants are mandated by Argentine law to spray down the cabin (and passengers)
with a pesticide. Fortunately, Turkey has no such regulations! My
first impression of Turkey was of the airport; modern architecture, professional
immigration officials, and excellent shopping. Having no plan but the seat
of my pants, I hopped on a bus and headed downtown to a trendy area called
Taksim. Istanbul seemed to have more Roman ruins that Rome itself! The
infrastructure weaved efficiently around aqueducts and Moorish forts, in
the middle of which were first class hotels and fine dining overlooking
the Bosphorous River.
For several
days I toured Istanbul, visiting my favorite attraction in any city - the
banks! With relative ease, I opened up a simple Turkish Lira savings account
in Istanbul: Interest rate? 22%. Yes, 22%. Istanbul is a city in the midst
of a rebirth; the younger population is beginning to take hold and recreate
the city into a cosmopolitan center of art and commerce.
I made fast
friends with some locals who took me to some of the finest restaurants
and adult entertainment known only to the locals. Istanbul was very alive
at night; coffee shops, dance clubs, restaurants, performance theaters,
and tobacco cafes were all bustling. Touring the city with my new friends,
I got a great look at cost of living in the city. With the legions of cabbies
around the city (a ride across town won’t cost more than a few dollars
at most), it isn’t necessary to have an automobile in the city, and parking
is a tremendous hassle (think Boston). Without a car, a very comfortable
life can be had for just $1500 / month - furnished apartment, utilities,
dining out regularly, etc.
Cost of travel
was low, especially in restaurants. Wonderful meals could be had for just
a few dollars. Like most bargain countries, western-style hotels fetch
western prices. You won’t find any bargains at the Intercontinental, but
a comfortable oceanfront hotel outside of Istanbul with breakfast cost
a mere $20. Real estate for purchase in central Istanbul is more expensive,
closer to the prices in Prague (which is still a bargain compared to Frankfurt
or Chicago).
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Fast
Forward
I was driving
in one of the most bustling and cosmopolitan cities in the world, sprawled
across a searing river and a hilly countryside replete with ancient ruins.
Throttling down a modern highway, I passed the city limits. Ten kilometers
later, I realized that someone turned the clock back 500 years. Driving
further still I noticed the ethnic flavor began to change. Then a sign
- “Welcome to Asia”. In my rearview mirror on the opposite side of the
highway - “Welcome to Europe.”
The town of
Sile, nestled on the southern coast of the Black Sea, is only 1 hour’s
drive from Istanbul. It is a smaller town, typically known only to northern
Turks instead of tourists. If you are looking for western college hedonism
Ibiza-style, you need to go to Bodrum, a very popular tourist resort. For
a calmer, quieter, and more locally flavored experience devoid of teenage
spring-breakers, Sile is an excellent choice, both for tourist travel and
the purchase of a second home.
Spending several
afternoons driving the Black Sea coast with local realtors, my investigations
confirmed my initial suspicions: Turkish real estate is a tremendous bargain,
especially oceanfront. 4 bedroom, 2 bath, 2,400 square feet, oceanfront
homes were going for $100,000. Smaller town homes fetched a mere $75,000.
I haven’t seen these prices since Nicaragua. In Spain or Italy, $75,000
would hardly fetch me a down payment!
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Overall
the lifestyle is quite pleasant. Turkey would be a wonderful place to live.
English is widely spoken, the people are well-humored, and the women quite
attractive. Turkish men love western women, especially blondes. These
people believe in kindness and hospitality, and they love to laugh and
have a good time. I am particularly fond of the cuisine, and all the fantastic
bargains on hand-made furniture, crafts, and lest we forget, carpets!
While prices are not as low as, say, Panama or India, the cost of living
is still a bargain. In Sile, you can live very well off of just $1,000
monthly.
The economy
is improving, the infrastructure is modernizing, and the Turks are eager
to join the rest of Europe in reaching a place at the global economic table.
The Turkish rate of inflation continues to fall, as it stands now under
9.5%, less than half of its level two years prior. The currency is growing
stronger, and unemployment is falling. Yet many westerners’ perception
of the country is that it is a backward and dangerous place. Despite
its proximity to 2/3 of the axis of evil, the government maintains a strong
hold on security. Though most of the nation is Muslim, Turkey is a secular
nation, and has been staunchly so for decades. Make no mistake - mosques
are everywhere. Prayer calls fill the evening with choral chants, and the
Turks respect their religious beliefs. But these are a very peaceful people.
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In
undiscovered Turkey, opportunity abounds. Simple savings accounts beat
far riskier investments in the western world. Real estate is destined
to skyrocket (see the WSJ Lifestyle section from 4 February 2004). Business,
trade, and tourist opportunities are everywhere. As the country gets its
economic house in order over the next decade in preparation for expected
entry into the European Union, all major macroeconomic indicators will
improve significantly. Turkey’s new currency, the Yenni Lira (TRY) is already
appreciating against the dollar. In the six weeks since I have left, the
Lira has already gained 5% on the Dollar. Today, most westerners will tell
you that investing in Turkey is foolish. Their opinion is based on myth
and collective ignorance, though Americans in general have a difficult
time opening their minds to international opportunities. But as word gets
out and tourism increases, comparably wealthy Europeans, especially the
Brits, Germans, BENELUX, and Swiss, will seek vacation homes along the
lustrous coastlines, pushing up the prices of real estate. As always,
in the middle of the boom, people will wonder “why didn’t I get in at the
beginning?”
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A paradoxical
land of splendor and squalor, modern age and middle age, Turkey easily
stands as one of the most visually stunning and bargain priced countries
in the world. If you have any specific questions, feel free to contact
me at james.hickman@blackknightcapitalgroup.com.
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