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- Feb 4, 2020
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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
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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