To buy an apartment on credit

Do you have less If you are not afraid of additional costs, you can replace half the amount you need with insurance? Even then, we can talk about high requirements that make it difficult to buy your own “four angles”. Low-interest rates, i.e. a relatively cheap mortgage, are little comfort. for an assessment

Poles cannot take advantage of their benefits if they want to buy a flat worth USD 300,000. USD you need to have several dozen, and in extreme cases even over 100 thousand. USD in cash. So much money is needed to be able to apply for a loan, cover all costs of purchase, finishing, and equipment.

To buy an apartment on credit

To buy an apartment on credit

The loan subsidy program ‘Flat for the young’ can help meet these requirements, but unfortunately, the pool of money available is limited and will end quickly.

It should not be surprising that we do not have a credit boom on the market. So what is behind the next reports about the record sales results of developers? Everyone owes cash.

It turns out that wealthy Poles, in search of investments more profitable than bank deposits, often choose to buy an apartment. It is the investment demand that is the reason that the average new “M” was mostly financed in cash in the third quarter of 2016 (65% of the price). The loan only complements this source of funding.

This amount went to developers’ accounts in only 7 Polish cities (this is the only amount covered by the survey). This is without a small amount the highest in the history of the study. If that was not enough, then in the first nine months of the year the amount of cash that went to the development market in the largest cities was higher than that of the entire year 2012, 2013 or 2014.

The situation will be changed by council decisions


Everyone who invests in the real estate market today should remember that renting is not a risk-free solution, and sometimes requires a considerable commitment from the owner. You have to buy a flat, finish it, prepare it for rent, rent it and then monitor settlements and the condition of real estate, reacting to failures, defects, and even more so conflict situations.

It should also be remembered that no one will guarantee that property prices and rents will continue to rise. Admittedly, history shows that in the long term housing prices become more expensive than the general price level (inflation), but the prospect of introducing the “housing +” program may disturb these trends.

Investors should also be aware that it is enough to increase interest rates by 2-3 points so that those who earn on rent today, start to achieve worse results than if they had their property on unattended and considered safe bank deposits.

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