The real estate market is going through difficult times these days. This is a natural consequence of the fact that people can't get loans and mortgages as easy as they used to no longer than two years ago,
First of all, the USA market was affected. We watched that on the news channels bust still could not believe it would happen to us as well. But it finally did.
Countries on other continents followed the recession trend less than one year after US got in trouble. Romania, Bulgaria or Hungary are only a few examples where the real estate market went down with high speed.
Maybe the most affected were the investors, who thought that buying and developing real estate assets would be the future and would bring them a lot of ROI. Based on the previous years evolution, the assumption was correct. Not anymore.
When there's no loan to take, very few persons can acquire expensive properties such as apartments or villas, as salaries are definitely not enough for such purchases.
However, if loans are given far too easy, there will be lots of persons who can't resist and take them, despite the fact that they can't afford to pay the monthly installments. Then they simply don't pay and here's a blockage occurring.
Real estate agencies in all these countries are crossing a difficult time, and are trying to adapt to the new conditions. Many of them will probably go bankrupt sooner or later, as they aren't strong enough to survive.
In Romania, the government has initiated a program, Prima Casa, meant to grant up to $60000 Euro for people who don't own a home and want to go for a mortgage and buy one. If they don't pay, banks would get their money back from the government.
First of all, the USA market was affected. We watched that on the news channels bust still could not believe it would happen to us as well. But it finally did.
Countries on other continents followed the recession trend less than one year after US got in trouble. Romania, Bulgaria or Hungary are only a few examples where the real estate market went down with high speed.
Maybe the most affected were the investors, who thought that buying and developing real estate assets would be the future and would bring them a lot of ROI. Based on the previous years evolution, the assumption was correct. Not anymore.
When there's no loan to take, very few persons can acquire expensive properties such as apartments or villas, as salaries are definitely not enough for such purchases.
However, if loans are given far too easy, there will be lots of persons who can't resist and take them, despite the fact that they can't afford to pay the monthly installments. Then they simply don't pay and here's a blockage occurring.
Real estate agencies in all these countries are crossing a difficult time, and are trying to adapt to the new conditions. Many of them will probably go bankrupt sooner or later, as they aren't strong enough to survive.
In Romania, the government has initiated a program, Prima Casa, meant to grant up to $60000 Euro for people who don't own a home and want to go for a mortgage and buy one. If they don't pay, banks would get their money back from the government.
About the Author:
Ioana is a real estate agent trying to make a living off imobiliare Valea Prahovei. She's been working in this field since many years ago, so she has good knowledge about how real estate works for Prima Casa Imobiliare in Romania.
No comments:
Post a Comment