by
Andrzej Fluderski
Mortgage Loan Department
The real estate market is experiencing an unexpected boom – apartments are sold like hotcakes, new construction sites open one after another. In spring, we often think of buying our own apartment – but is now really the best time to make such a decision? Let us shortly describe the situation on the real estate market and check what makes Poles so eager to buy new apartments right now.
Loans cheaper than ever...
Many of us focus on the options of repaying the loan. Before deciding to buy an apartment, we scrupulously calculate our monthly charges. At the moment, conditions are exceptionally favorable. On the one hand, we hear of increasing salaries and a stable “employee's market”. On the other, the interest on loans in Poland is currently lower than ever, making loans the cheapest in history. The average interest rate levels at 4.64% (December 2017). Why? It is all thanks to the Monetary Policy Council (RPP) operating at the National Bank of Poland (NBP). Since March 2015, RPP has maintained interest rates at the same, record-low level, currently of merely 1.5%. More importantly, in early 2018 the President of the NBP suggested that this trend could continue even until 2019.
The record-low interest rates in the recent years are also caused by a slightly lower margin, reduced lately by banks. Other factors worth mentioning are a strong zloty’s appreciation and melting CHF rate, which is quite important from the point of view of the mortgage loan market.
Rekordowo tanie kredyty jeszcze taniej, ale nie na dugo - Parkiet PLUS - parkiet.com
Moemy zadua si najtaniej w historii, o czym decyduj niskie stopy procentowe, konkurencja midzy bankami oraz spadek ryzyka kredytowego. Ale taki stan rzeczy nie bdzie trwa wiecznie.
It is good news for borrowers, as they will have easier access to cheaper mortgage loans of higher amounts.
...And apartments are going up
Experts expect apartment prices to go up even by 10%. Growths will be caused by the recently increasing value of building land, as is widely emphasized by developers. The situation is similar in the case of contractors – they have to raise wages to find employees at all. The mentioned employee’s market is simply a fact. Developers are also struggling with growing prices of construction materials. This is caused not only by an increasing demand, but also by ever more expensive materials required for production.
All of the above have a significant influence on the prices of apartments. And if a developer needs to incur higher costs, it is nearly certain that it will be the customer who will have to cover almost all of them.
All of the above have a significant influence on the prices of apartments. And if a developer needs to incur higher costs, it is nearly certain that it will be the customer who will have to cover almost all of them.
Consider investing
The demand for real estates, and the resulting price increases, are also driven by the scarcity of attractive forms of investing capital. Interest rates on bank deposits, volatility in stock of listed companies and extremely low interest on bonds encourage Poles to buy real estate for investment purposes – even 30 percent of new apartments are purchased for rental. Does it pay off? Of course, everything depends on localization and floor space, but it is possible to earn from rental at least 5-6% per annum.
Where you can find a mortgage loan on attractive terms? Plus Biznesu and Bankier.pl recommend Citi Handlowy. Our loan was voted one of the best loans on the market and awarded the Golden Banker 2017 award. It is a good idea to meet with our Mortgage Relationship Manager, who will help you complete the whole process and will present all the costs in an understandable way
Where you can find a mortgage loan on attractive terms? Plus Biznesu and Bankier.pl recommend Citi Handlowy. Our loan was voted one of the best loans on the market and awarded the Golden Banker 2017 award. It is a good idea to meet with our Mortgage Relationship Manager, who will help you complete the whole process and will present all the costs in an understandable way
