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Mortgages and loans

Nzor: NB raise your finger right, if they take a mortgage on blood

Drinking and sharing your own home is a trend of the day. According to the survey, 76 percent of them consider it a suitable investment. And it’s no wonder. For several years, rates have been extremely low, the economy is doing well, there is a very low unemployment rate and incomes are growing.

However, according to Petr Borkovec, Partners, some of them take mortgages on their blood, which can be a huge financial problem for them over the years and a path to personal bankruptcy and execution. It is important to fulfill them, to present the natural development of the family, mt kapl. And then, with the crisis coming and having a spare reserve, Petr Borkovec.

The demand for new housing has been huge in recent years. For some time, the NB has raised a warning finger – banks and credit companies have recommended that they limit loans to housing. Do limited NB make sense?
NB lift your finger correctly and use the correct tool. Although the measures lead to a limited number of families sharing their own home, I am convinced that in the long run it could be a great risk for them first. The two did not apply, because real estate prices were not so high and the availability of cheap pensions was not so great. Today, however, it is a very dangerous combination. People know that they can afford housing under these conditions, but the lack of housing and so the demand above supply means that their prices rise rapidly before the winter.

Do you see my risks for people who want to live?
People today have stable cities and better salaries, the economy is growing. But that changes one hundred percent and it doesn’t matter if in a year, in two or in three. Bonuses will not be a matter of course, there will not be such a high salary or there will be no work at the same level as today.

But the mortgage represents a bond of 20 and 30 years, and it is a long time for people to ignore economic cycles and what they do. It will not apply to everyone, but there are certain groups of permits on the labor market that will be very endangered. They pay with him, without work, but with a mortgage on an apartment there will be some big problems.

NB warns that real estate prices in the Czech Republic will peak. The real estate market is peht and real estate price growth is the largest in the EU. What does that mean to me?
Yes, property prices are rising today and are growing fast. And there will be a cooling even in the course of the crisis, demand will fall and property prices will undergo some correction and will go down.

We have experienced this once and it is quite recent. Prices quickly fell by 20 and 30 percent. Consequently, prices stop falling and it happens that when clients will not be able to meet, the bank will live their otter and sell for me. They will lose what they paid, they will still owe the bank and they will not live elsewhere.

But how do you know that you should not take out a mortgage because I have to be above his audience?
It is necessary not to take a blood mortgage. People should clarify whether they have enough income, whether they have created a financial reserve for at least half a year. And as much as the crisis would affect their allowance and income first. It is crucial not only in their daily income, but the security of labor and the stability of the income.

It is also important to fulfill and present the natural development of the family, the number of fulfilled children, time for maternity leave and expenses. Dalm parameter is in its own chapter. Financial 90 percent and 100 percent real estate debt has never been a good idea, and today it is important to limit these options. When a client wants to live, we always work with many of these factors. And it happens that he recommends buying a cheaper property and borrowing from me, or not taking a mortgage at all, repaying and learning something.

In addition to mortgages, today people use so much consumerism and try to solve the situation in order to obtain the lack of funds for the equipment of their housing. How do you get it?
The overall risk of change is thus significantly increased. Compared to a mortgage, consumer costs are as much as you pay, as is the installment, so you have to pay. This can be a very fast way to financial problems, personal bankruptcy and foreclosures.

A number of people use cheap mortgages to share the investment property they will rent. But you have to be with me?
It is necessary to solve the same problems as with a mortgage for one’s own home, have the security of income, a sufficient reserve, etc. In the case of an investment apartment, I should go to assess my competence to find the right real estate investment and regularly and quickly find new tenants. I have to realize that with this investment, I bought a lot of work, including worries, and I carry many risks.

What are the biggest risks?
The risk of buying a lot of real estate and unsuitable for rent. The risk of not renting an MSC, but I have to pay the mortgage. Risk of high costs for the apartment and repairs. The risk of problems with landlords, etc. In general, I would definitely not recommend buying real estate investment matratically, and go with a high mortgage. It is very risky and the return often does not answer, there will be units of percent of them, and the investment horizon is in the coming years.