For several years now there has been growing interest in new apartments purchased for loans. This is in a sense a phenomenon and an unprecedented situation, especially since real estate prices in some cities have increased by 10% year on year. Nevertheless, the interest of buyers is not falling.
Trends in housing prices
Homes are getting more expensive, but in the last dozen or so months it has become very visible. There are such cities, where in comparison year-on-year, the prices on average increased by 10%, and the record-makers raised prices by almost one-fifth. This is mainly due to rising land prices, and therefore one should not count on a slowdown in the trend. It is true that some economists warn that such a rise in prices is not justified, but at the same time they admit that with such a high demand, certainly this trend will not reverse.
Trends in housing loans
Analysts look a little differently at the bank. These, of course, are also aware of the increase in housing prices, but, unlike developers, they do not look at the future through pink glasses and credit applications on the verge of profitability tend to be rejected. For now, however, you can not talk about any avalanches, but the prices of mortgages are falling. This apparent contradiction can be explained by changes in the regulations from a few years ago. Now there is no chance of credit for those who have not accumulated at least 10-15, and sometimes 25% of their own contribution. Thus, the risk is lower for the bank, therefore, in order to maintain credit liquidity, the margin decreases. Another thing is that this situation is unhealthy for everyone in the long run, but for now it is as it is.
A bit of panic and false hopes
Developers are largely responsible for the whole situation. These encourage you to buy new apartments for rent. And even pale that an ordinary apartment in a new block of flats is almost always called an apartment, although nothing is connected with it outside of the price. Buyers are more tempted by 7% profit annually. In this calculation, however, no one takes into account the cost of credit, which ultimately significantly reduces the attractiveness of the project. It is false hopes that stimulate interest in this form of investment.
Panic is mainly about people who are looking for apartments for themselves. Developers are happy to report “last homes and flats” and often write that the place ends. In fact, only dear land ends, and cheap land is still unused, but information prospectuses are silent. For the past few years, being scandalized by the ever-closer end of the golden age of construction, investors are buying more apartments, not often looking at prices in other locations.
It would be appropriate to add a word of warning at the end. The fact that loans are cheap today does not mean that they will always be like that. Because they have a variable interest rate, and we are probably ending a non-inflationary period, it should be assumed that the loan will go up, and the flat will lose value – the oversupply is quite significant and the latter last often stand empty for several years. Therefore, do not act nervously, but rather more cautiously than usual.
Credit information for people who intend to buy their first apartment.
EasyMoney cooperates with many banks and loan brokers in order to provide our clients with comprehensive services in the field of assistance in obtaining the best mortgage loan to finance the purchase of new apartments. We provide completely free and comprehensive assistance related to the formalities accompanying the conclusion of mortgage loan agreements. We provide support independently, objectively, adjusting the conditions to the individual situation of the client and his needs.
EasyMoney provides free help in the process of getting a mortgage loan:
- We have special offers of banks with whom we cooperate in granting loans.
- We have mortgage offers without commissions and additional fees.
- Attractive promotional offers for housing loans with individually negotiated price terms.
By choosing a mortgage from our offer, you can use a program that provides support to specialized experts throughout the loan granting procedure, which will help prepare a set of documents required by banks for the purchase of a selected flat / commercial premises.
A cheap mortgage for a dream apartment is a good financing. For more information on the current mortgage offer, please visit the their website / housing loans.