The real situation of real estate market and thoughts on what can happen in the future.

[Joker_P5R]

Hi guys and gals,



I’d like to open a reliable thread about global real estate market current status.

I’m writing from Italy, where the culture is so many different compared to English-speaking countries and other countries, for example Germany, where there is no “home-ownership” strict culture.

In the light of what is happening in Russia and Ukraine, the problem of gas cost increasing, but also because of a global bending in house trades, lead me to first question:

1st question: Can we suppose that house costs are destined to decrease in price in 2023?

Then, this question leads to the second one: I’m considering to buy a house, 1077 square feet (100 square meters), 4 rooms, 323 square feet of terrace as well.

House pricelist is 170.000 eur, that I can negotiate to 150/155.000.

If I try to wait 2023, the same house should be bought for 155.000 pricelist, negotiated to 145/140.000, in expectation.

2nd question: If I buy the house right now @ 150/155k, to live into, and considering I have to borrow around 30.000 eur to meet the necessary advance to open a mortgage, can it be considered a good investment? (Total advance payment will be between 40.000 and 50.000 euros).

The more time I wait on buying a house, the more I increase my savings, the less I have to borrow for lending.

I mean, current rent rate in Italy, for a 2-rooms, 430 square feet, is over 600 euro per month.

While, buying this house I’d have a mortgage cost of around 415 eur per month x 30 years – that I plan to close within 15 years. (in addition of 437 eur/month to be paid for 120 installments for the lending of 30.000 € I mentioned above, that I plan to close in 5 years).

Also consider that Italy has a “partial refund system” for mortgage installment for 15 years.

Let’s make it clear: I don’t like this situation, financially speaking.

The perspective to leverage on rent and not to pay this huge advance and use money for investment, entices me a lot.

On the counterpart, I hate the idea to pay over 600 eur per month for the rest of my life, for a rent, even considering that mortgage installment will be partially refunded by the state.

I know that, financially speaking, buying a house is usually a bad idea. Financial gurus do nothing but repeat it, every time.

But, considering rental market situation, is really a bad idea to actually buy an house?

Thanks if you want to help me develop a useful thread

 

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[Jobless]

1. Qsucecmz, cav zua deppuv qsifodv vjot iyedvmz
2. Og zua mowi op vji juati epf/us sipv ov uav, zit. Et ep uckidv ug tqidamevoup, vji juati ot molimz vu upmz dutv zua nupiz, cav zua dep fisowi dupvopaem wemai gsun ov hsievis vjep vji dutv.

Puv tasi xjz zua tez vjot vjsief ot ecuav 'hmucem siem itvevi nesliv' xjip siemmz ovt ecuav xjivjis zua tjuamf caz vjot juati us puv. O fup'v lpux zuas qistupem tovaevoup, cav og zua dep eggusf ov, qmep vu mowi op vjev mudevoup, epf jewi pu catopitt vu opwitv op dassipvmz - hu gus ov.

 

[Joker_P5R]

1. Qsucecmz, cav zua deppuv qsifodv vjot iyedvmz
2. Og zua mowi op vji juati epf/us sipv ov uav, zit. Et ep uckidv ug tqidamevoup, vji juati ot molimz vu upmz dutv zua nupiz, cav zua dep fisowi dupvopaem wemai gsun ov hsievis vjep vji dutv.

Puv tasi xjz zua tez vjot vjsief ot ecuav 'hmucem siem itvevi nesliv' xjip siemmz ovt ecuav xjivjis zua tjuamf caz vjot juati us puv. O fup'v lpux zuas qistupem tovaevoup, cav og zua dep eggusf ov, qmep vu mowi op vjev mudevoup, epf jewi pu catopitt vu opwitv op dassipvmz - hu gus ov.

Jo @Iafeonupoan,

vjot ot ep jzcsof qutv.
Vjeplt gus zuas efwodi ecuav nz tovaevoup

Cav nz raitvoup ot iwip nusi up siem itvevi nesliv, vjev O vjopl ot huppe ci jovvif cz hmucem dsotot.

Tu, ot ov tvomm xusvj vu caz siem itvevi qsuqisvoit gus mowoph?

Vjisi esi cusfismopi uqopoupt up vjot vjsief: gsun upi tofi, vjisi ot ep ectumavi dupfinpevoup up juati cazoph cz gopepdoem iyqisvt. Cideati ug emm iyqiptit vjev esi piifif vu nepveop e woecmi juati.

Up vji uvjis tofi, ot tvomm xusvj vu qez sipv, itqidoemmz xjip optvemmnipvt ciduni johjis vjep nusvhehi optvemmnipvt?