What characterizes the real estate market in Poland?
Before taking out a mortgage, the borrower should analyze in detail the situation on the national and local real estate market. This approach allows you to select better opportunities and to generate savings when signing a loan agreement with the bank. What characterizes the real estate market in Poland for 2018?
Willingness to finance real estate with own funds
Flat plus is one of the latest political programs that will ultimately improve the lives of domestic families. Real estate government programs are an alternative to standard mortgages. Large rent subsidies can temporarily limit the demand for classic housing loans. 2018 is a good year in terms of customer activity on the primary and secondary market. Interest in buying real estate is not weakening. It can be said that there is a risk of a “speculative bubble due to the extremely low interest rates remaining. Borrowers try to finance real estate primarily within equity. A large own contribution in loan agreements is becoming more frequent and allows negotiating better conditions of cooperation with the bank.
Prices up in the best locations
Borrowers in 2018 have certainly experienced an increase in the cost of building materials or an increase in the prices of construction areas. Quite significant in some locations. According to information from credit advisors, most apartments financed with a mortgage loan go to rent. Not only families, but also corporations with significant capital become more and more often the owners of real estate. House prices on the primary and secondary market have increased, especially in prime locations.
Rent with the best prospects
Due to the cyclical increase in salaries, the creditworthiness of society naturally increases. And this allows you to finance increasingly profitable investments. Rental is the best alternative to bonds, bank deposits, and more risky forms of investing capital. Without changing tax conditions, the situation of tenants will improve significantly provided that low interest rates are maintained.