Codes of Living-1

The Magic Formula for Living:

Is there a magic formula for this? I'm talking about living, not a standard life. A warm, loving family, the realities of Turkey and our standard of living.

Let's list the requirements:

• First of all, everyone will be fed, from bread to fruit, from fish to meat and chicken, even if it is occasionally.

We need to find a roof that will put everyone's head, whether it's rent or own property, and there is a cost. I wonder how much?

• No living in an empty house, furniture, white goods and so on, carpets, beds, quilts and sheets, all of them will be expenses, butthey will be necessarily.

• It will have electricity, water, natural gas, and that house will be heated with wood and coal or natural gas.

• We do laundry, we take a shower, we wash dishes, detergent, soap, cleaning materials from toilet paper to shampoo will be expenses.

• We are in the age of communication, the phone will be an internet expense, it is enough if it is a phone that can be shown to uncles, but it should be internet, let's not be so far behind the age.

• If we say that at least one of the children is in school, there will be school expenses, service costs.

• Well, they said at least three, but the cost cannot be overcome, if we say the second one is still in swaddling, the cost of food to milk, from diapers to toys is a lot, but the smell is enough, we will gladly take care of it.

Every once in a while, we'll take things off to us.

• In between, something breaks down in the house, for example, the bulb explodes, it is necessary to change. If something else is broken, it is necessary to have it repaired, all of which is costly.

• In between, we all get sick, the doctor is the expenses, the medicine costs, the insurance does not cover everything, there will be some additional costs. In fact, if there is a father who is sick, it will have a negative effect on the family economy, but our father is strong and skilled, so let's just call it the cost of medicine for the children, maybe the wife in between.

• If we go somewhere, even if we are going to work, it means that there will be travel expenses, some public transportation, some taxi, minibus, some private car expenses, let's see, we will pay a price for this cost.

• You need entertainment in between, at least a tea garden, a pastry shop, I don't know, a cinema theater, maybe dinner in a restaurant, a weekend in a pisset, or a picnic on the weekend.

• I think you should be able to save a little bit to the corner. Let's say 5% of the money we save. There are a thousand kinds of situations in life, let us have money on the bad day a little on the sidelines.

These are the main expenses.

Other Charges:

Other? I accept that there are no holidays, no yachts, no floors, no private lessons, no make-ups, no aesthetics, no botox or anything, no drinks, no cigarettes, no daily newspapers, no books, no magazines, no hairdressers, barbers, etc. Let's say that we do not help our elders from time to time, maybe we don't donate to the mosque here and there, it is lottery, toto, national lottery, maybe gambling, horse racing, there are no such expenses.

Our family is a standard family, the father works, the mother is at home, she takes care of the baby in the swaddle, the child reads, and the baby sleeps or cries all day. So there's only one salary coming into the house. A standard family of four. There is no more, but let's say we have a middle-class family.

Our house is either rented or a loan from the bank and a house is bought. Monthly loan debt is paid to the bank. We will see now, our hearts are saying let's have a home, and the account will show whether it can be.

Whether all home furniture and white goods are bought with bank loans in the same way, our families can only cover the wedding expenses and it is up to us to fix the household goods.

Maybe we have a car, not so luxurious, an average vehicle, a family car, again bought with a bank loan, it is used only for picnics on weekends, maybe to kiss the hand of the elders in the country during the holidays. Sometimes it's used if we go to a family park or something. On the way to work, we go by minibus, or by public transport.

The child attends a standard public school, of course, there is a small service fee, albeit a short distance, the rest is stationery costs and pocket money.

The mother does not have such a serious expense, she is not very capricious, the lady is a lady, she sits in her house, the baby takes care of it, she does not go to the day or anything, if the neighbor comes, maybe a tea, two cookies next to the tea or homemade pie buns.

Of course, our baby has a little expense, diapers, food, milk, toys.

Loans Withdrawn Due to Expenses, Repayments:

Let's clarify one more issue and try to calculate what will be incurred.

The repayment of the loans we receive from the bank is usually made by increasing the interest rates by a certain percentage from today. When we repay the loan, we pay two or three times the amount of money we received. In addition, the bank takes the interest of the loan a little in advance. In other words, today's bank loans system is in favor of banks. In this way, they also earn big money, their profitability rate is very high.

Let's imagine that our bank wants to pay back every month in a way that increases at the rate of inflation both for ease of calculation and because I think it is fairer. Let the refund fees be adjusted in this way. So if we pay a hundred pounds this month and the monthly inflation next month is 5%, the next month's payment is one hundred and five pounds. Hypothetically, considering that our monthly income is also increasing at the rate of inflation, it is a fairly fair solution. We will postpone the interest accounts and mixed accounts forward. The repayment price you will pay at this time will simply come out by dividing the loan by the maturity period.

I mean, we're going to make our calculations in a sense, adjusted for inflation and seasonal effects. In other words, we will calculate our needs based on what the prices are now.

Shall we get started?

Homes as an Expense Gateway and Their Prices:

What do you think would be the minimum monthly expense to live under these conditions?

Of course, it varies from city to city, so maybe for some expenses, it is useful to calculate and average in the most costly city first, and then in the city with the least cost.

For example, if we are going to rent or buy, house prices are such an expense. So let's start with the second item in our ranking, our housing expenses.

These days, both rents and house prices for sale are both overly inflated. So we're going to have to take some approximations for an average value.

Standard two rooms and one living room housing prices are like an average of 1.5 million in Üsküdar if we look at Istanbul at current prices. I'm looking at the prices from the "All Real Estate" site, you can also check it out. There is a cheaper one, there is a more expensive one. The houses that see the Bosphorus are much more extreme, but on average, I would say let's accept this for now.

If we look at Ankara, I once sat in Assad, I like those places, I can say that the middle mast sits here. So let's look at a price from there by making a reminder of the past. As I understand it, the average price is like 850 thousand pounds.

Let's take a price from Narlıdere because of my late uncle in Izmir, we can say that the average is 1.2 million.

Since I started primary school in Erzurum, I wanted to look there, there are not many houses for sale, but there is an average of 200 thousand liras. It seemed pretty low to me. There are also not many houses for sale. Let me think about it, maybe it will be better not to take it into consideration.

Let's also look at Bitlis Tatvan, I have memories there, there is not much for sale again, we can accept it as 400 thousand.

It is a little more expensive in Van, like 600 thousand, Diyarbakır is even more expensive, we can say 750 thousand. Adana 900 thousand, Kayseri 450 thousand, Trabzon 400 thousand, Muğla 1.3 million, Edirne 550 thousand, Afyon 450 thousand.

So it really changes from city to city. Prices are high in coastal cities, low in the east and inland.

Let's subtract Erzurum and Istanbul, and if we say Muğla and Trabzon the lowest, the average is (1300+400)/2 = 850 thousand liras. We can accept this price as 2 + 1 house price with a very rough average in Turkey at the moment.

Home Loan Account:

Now we will need credit to be able to buy this house.

Private banks give home loans with a maximum maturity of 24 months, and the monthly interest is 2.4%. We cannot cope with these rates.

I don't know if there is a giver, but the maximum expiry time is 240 months by law, I think, 20 years repayment period. Let's calculate over these legal 240 months. I wrote about our loan repayment system above. Therefore, for 850 thousand pounds, 240 monthly repayment and 3500 pounds per month comes out. The price to be reimbursed in this first month will increase each month. I wasn't sure if we could handle it.

In this case, I think the average rental price will be cheaper. Now let's not do all the research and scan the rents all over Turkey. In Europe or in the world, rental prices are calculated on the basis of the return of housing prices in a maximum of 20 years, but as far as I know, this period can be calculated over 30 years, that is, 360 months. The rental price of a house with a price of 850 thousand liras is 2360 liras in this case. Yes, it is cheaper than loan repayment. In reality, rents can be cheaper right now, there are also landlords who want more.

I also wanted to check it on the internet, they wrote that the average rent in Turkey as of the end of April 2022 on a real estate site that can be trusted is 2640 liras. Their analysis is more accurate because it is based on more information. The average housing size in the same place is also written, 110 m².

After thinking about this issue so much, I decide on a monthly rental price of 2200 liras because the calculation I make is based on very little information and is a rough average, and because the 2 + 1 houses are smaller than the 110 m2 mentioned on the site, and I will take into account our second item in our account, our housing expense, over this price.

I'm sorry, I tried very hard, but living as a landlord doesn't seem easy in these circumstances. If we can save in the future, maybe we will buy a small house. Perhaps you will have to wait for your pension contribution. Although the pirim we will receive is not enough alone, it will be possible to have a house in the future by adding the savings.

Let's say we are calculating for the middle pole because we are calculating the average for now. According to calculations, the middle pillar will unfortunately sit on the rent for now.

Yes, our average house rent is 2200 liras with a little positive discrimination and we will continue the account with other items. But we're pretty tired up to this point. If you want to get some rest, let's continue our calculation tomorrow.

Love and respect from Moscow for now.