Mortgage and loan rates have risen significantly in recent months, and many fear that Euribor will rise again in the coming period.
Dušan Uzelac, of the Kamatica website, believes that although the situation is now turbulent, that does not mean that Euribor will skyrocket.
“What is happening currently is not terrible, only that nobody informed us that that would happen. When Euribor goes up, the loan instalments increase on average by EUR 30, on a monthly sum of EUR 200-250”, says Uzelac.
Higher the monthly mortgage instalment, the higher the increase. “The problem with housing loans is that none of the banks offers these loans with fixed interest rates. Banks do not have the courage to commit to a currency for 20 years, that is why they commit to Euribor and thus share the risk with the customer,” says Uzelac.
“Although the current situation is turbulent, that does not mean that it will stay that way until the end, nor does it mean that Euribor will skyrocket”, Uzelac emphasises.
Interestingly, according to the latest data, a large number of apartments are still for sale, mainly in Belgrade, and in the last quarter, as many as 8,013 were sold and only 10 per cent were paid for through mortgages.
Uzelac explains that the statistics are ‘laid out a bit wrong’, as they do not say that out of 8,000 apartments, 800 were paid with help of a loan, but that 10 per cent were financed.
He also points out that there are two types of real estate buyers – those who are buying a home for themselves and those who are looking to ‘park’ their capital.
‘Those who are buying a home for themselves are the ones who usually resort to loans and look for more favourable ones, while those who want to invest their capital in a property want to keep the money”, Uzelac points out.
When asked if buying real estate is a smart way to protect capital, Uzelac says that if all projections say that in a year’s time the money will be worth 10 per cent less, then the answer is clear. “Those people who are investing in real estate are actually increasing the prices of housing for those people who are looking to buy a home for themselves,” Uzelac concludes.
This post is also available in: Italiano