[ad_1]
In the last year or two, buyers for investment purposes, in part mortgage loans, can sell their property after the credit default expires. – It arises from the latest analysis of ingatlan.com, which also shows the evolution of the average price per square meter of flats in Budapest based on data from more than 100,000 housing ads.
Real estate investment on credit
In 2018 and the first half of 2019, a part of the investment buyers financed the purchase of housing with housing loans and paid the installment out of spending, mainly on short-term housing spending for tourists, that is, accommodation in Hotels. However, due to the epidemic, the number of tourists visiting Budapest was reduced to a fraction, so a significant part of the flats in question are unoccupied or rented for a longer period of time.
However, due to the increase in supply, apartment prices have also fallen by 10-15 percent since March.
For affected investors, the introduction of a blanket credit moratorium in March still gave them a slight delay.
“However, some investors will not be covered by the extension of the moratorium, so since they have no or much lower income from renting an apartment, they may have to put a particular apartment up for sale. With lower incomes, they are no longer sure that math will come out if they have to pay the fees again. “- underlines László Balogh, the main economic specialist at ingatlan.com.
What does a credit default mean?
Judit Németh-Simkó, communication chief of money.hu belonging to the ingatlan.com group, said about the credit default and its extension: “As part of the debtor protection measures due to the epidemic, the credit default introduced in March was essentially general, covering almost all loans.
In September, the government announced a partial extension of the moratorium, leaving child-rearing workers, public employees, retirees and unemployed for another six months, until June 2021.
Investors who do not belong to any of the groups will have to pay the fees from January ”.
How many apartments are affected and how much do they cost?
In recent years, 30 percent of buyers in the capital have bought real estate for investment purposes, so ingatlan.com estimates that there may be between 4 and 5 thousand apartments where home sales can occur. This amount can represent between 10 and 12 percent of the annual sales turnover in Budapest. According to László Balogh, those who have started a home savings fund plan in the last 3-4 years in addition to buying a home for investment purposes from a loan may also be forced to act. After the state-subsidized savings period ended, they planned to reduce the outstanding debt on the mortgage loan from the accumulated amount, thereby reducing expenses.
According to data from ingatlan.com, at the end of September the average price per square meter of used apartments in Budapest put up for sale was 715,000 HUF. This means that half of the advertised apartments were offered at lower prices and the other half at higher prices. This represents an increase of 1 percent, which corresponds essentially to year-on-year stagnation. A VII. The average price per square meter in the district is 813 thousand florins, 4 percent lower than the previous year.
According to the expert, if many people choose to sell, it could generate a wave in the central districts that could result in lower prices even when ringing in the outer districts.
(Cover image: MTVA / Commission: László Róka)
[ad_2]
