Will real estate prices go up?
Many people ask themselves this question. Many respond to them as well.
Regardless of whether the answer comes from Kowalski or a real estate expert, it is worth making a decision based on your own calculations.
Imagine a situation where you buy something at a good price.
The market price of the property is PLN 500,000. You bought the property for PLN 350,000. That is 30% below the market price!
What did you think?
30% down - no chance!
Price by 30% - it can't go down!
Exactly!
Or maybe you just found an apartment with legal problems?
Or maybe you bought a property in Kozia Wólka, where in 4 years there will be no one?
The customer may also be missing!
So what if you bought it at a good price...
Is it worth asking yourself?
Why are you buying real estate?
- If you want to live, it probably doesn't matter to you whether real estate prices go up or down. You want a place to live and that's it.
- If it's to hedge against inflation, it might be worth putting your money into something you know about. What are you sure about how it works.
Yes, I know what you're thinking! Okay, let's have real estate.
Remember!
Shop where you live and live! In a place you know.
You know exactly where properties are selling.
- What are their prices?
- Who buys them?
- When do they sell?
- What to do to make them sell?
The next idea is to buy real estate with a mortgage loan.
Most people with extensive knowledge and experience in financial markets say that this is "a very good idea for people who have funds equal to the amount of the loan granted." In the event of a drastic increase in interest rates, which will automatically translate into WIBOR (the percentage at which banks lend money to each other), they can easily repay the loan because they have the means to do so.
If you took out a mortgage loan to purchase real estate for residential purposes, protect yourself against this eventuality. Set aside PLN 15,000 - PLN 30,000, you will sleep better knowing that no matter what happens, you have 6-12 months to come up with something.
Don't worry, it won't be the end of the world! If so, your credit will be the least of your worries.
Remember!
There are others besides you who have loans. If you buy to make money, you probably already know how to do it. No matter if there is an increase or decrease, you can make money from it. You know what it is, several factors are at work here at the same time. Experience plus industry knowledge plus time.
Someone once said that "capital is in the head".
Now I know you're wondering what article is this? The purpose of the article is to illustrate to you that there are no standard solutions. If someone clearly states that prices will go "up" or "down" or "it depends", then they are actually right!
Good practice clearly shows that regardless of what information we hear, we must verify it ourselves.