Mortgages, is it worth buying a house now? Here's the scenario
Buying a house is always a big step, but in recent times it has become a little more complicated, especially for those who need a mortgage. At that time, Is it better to jump in now or wait a bit'? And what type of mortgage is best to take? Here are some things to consider before deciding.
If you have found the house of your dreams and can afford it without too many financial problems, it might be worth not letting it slip away. But if you are looking at a small house in a neighborhood that doesn't convince you very much and you are not sure if you will stay there for a long time, perhaps in that case waiting would be the most appropriate choice. As outlined by the Corriere della Serathe point is that it depends on many things, such as how much you have to pay in rent, how much you have already saved up and what your plans are for the future.
The Revenue Agency's forecasts indicate a sales decline in 2023 of 10% compared to 2022, but not necessarily a catastrophe. In reality, the comparison is with a year in which a lot was sold. And if we look only at mortgage sales, there has been no decline so far. This decline can be attributed mainly to the cost of mortgages and their difficult accessibility. However, there are hopes that interest rates will decrease in the near future, making financing more accessible and keeping home prices stable.
The current real estate market presents a series of peculiar challenges. It is clear that price lists must be adjusted to the increase in costs, and this is especially reflected in large cities, where an increase in prices is observed despite a clear decrease in initiatives in the sector. Market responsiveness therefore remains a key factor to be monitored closely.
However, it is important to underline that the price lists of new properties are unlikely to be significantly reduced. Therefore, the idea of waiting to make a purchase in order to save money could prove illusory for those who aspire to a new home.
This scenario does not prove favorable for builders either, as the demand for new construction in recent years has been mainly driven by families' desire to own green properties. Although there is a growing interest in the environment, it is undeniable that the main motivation lies in the economic aspect. Also note that the tax discount for the purchase of homes classified as energy efficient, usually referring to categories A and B (commonly associated with new construction), he was not reconfirmed for 2024.
As regards the purchase taxes, it must be said that the discounts are valid only if you signed the agreement by December 31st and complete the purchase within this year. Recently, there has been a breath of fresh air for those looking for a mortgage: the Consap fund has been refinanced to guarantee financing that covers up to 100% of the value of the house. And the great thing is that the number of people who can take advantage of this opportunity has increased.
Fixed rate mortgages guaranteed by Consap now have affordable rates, around 3% or even less in some cases. Keep in mind that public money is only available for 2024, so if you're interested, it's best to think about taking action in the coming months. There is no guarantee that these conditions will remain available in the future.
House prices are expected to remain more or less stable. But there is a little more supply on the market, so some sellers may lower their prices to sell faster. On the other hand, there are also those who want to make a little more money and might stick to the price. It will depend a lot on how interest rates, inflation and wages go.
On the other hand, with interest rates rising, mortgage payments have become heavier for many people, and despite this, salaries have not followed the same trend, which makes it difficult to balance the family budget.
Here's how to make the installment go down by 100 euros
However, there would be a way to lower the installment by even 100 euros per month or even 120 euros less next year. Banks are already lowering payments, usually by a few dozen euros, due to changes in interest rates. Prices are expected to fall further, although it is not known exactly how much. One of the options that would lower the installment is the subrogation of the mortgage, moving from a variable rate to a fixed rate. Furthermore, banks are also offering an advantage to customers by reducing the interest spread, which leads to significant savings in overall costs.
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