If we earn 9-11 thousand USD per month, we can afford a home currency loan to buy a house worth 800,000 USD, calculate GFIC analysts. 100% monthly loan installment depending on the bank, the value of the property, repaid for 35 years, will be 4.6 – 4.9 thousand USD.
In the case of a loan in USD, the monthly charge will be approx. USD 1,000 lower, reaching approx. USD 3.5 – 3.9 thousand USD. It should be noted, however, that it is much more difficult to obtain financing in the European currency. In this case, banks usually require their own contribution from applicants.
If we decide to take out a 100% loan value of the house, in turn, we have to reckon with the additional cost associated with insuring low contributions, which is payable in 3 years in advance. Depending on the bank, the cost will be 1 – 4.5 percent. from 20-30% loans, i.e. approx. 8,000 USD.
In order to lower the loan margin, we need to accept certain bank conditions related to the tying commonly used today. To buy package, which involves the creation of an account with a credit or debit card, or savings account in a given financial institution.
New homes cheaper by 10%
Open Finance calculates that over the past year, houses on the capital development market have fallen by 1.8 percent. However, taking into account the total prices of individual offers, their value decreased by almost 10%. The reason is a significant decrease in the area offered by home and segment developers.
The downward trend from 2008-2010 has stopped, according to the company’s analysts. Over the past three years, prices for new homes in Warsaw have fallen by more than 12 percent. A similar discount was at the same time the share of the housing market (11 percent).
The average price of a house or a semi-detached house offered at the last Warsaw fairs of single-family terraced real estate in the so-called development standard was 670 thousand USD. With a usable area of 148 sq m and a plot of 350 sq m If we had allocated this amount to purchase a Warsaw apartment, we would have bought an 86 sq m premises. Assuming that the average transaction capital in Warsaw was in September this year. 7783 USD / sq m (Open Finance data).
The biggest price drops of the most expensive houses
House prices falling in the cheapest price range dropped by 5.7 percent compared to 2010. Bid rates did not exceed 570,000 for this group of offers USD. These are properties up to 130 sq m. on plots of land not exceeding 200 sq m. A year ago, at the upper limit of the rates, their price was 604,000. USD and the size reached 143 sq m, while the plots – 290 sq m.
The most expensive houses offered by developers during the year saw a fall in price by 11.5 percent. The cheapest house in the highest price range was offered at the fair for 792,000 USD. A year ago it was 895,000. USD, and a year earlier 1 million 77 thousand USD. The area of houses in this group also decreased by 7.2 percent, from 191 to 177 sq m, as did the size of plots.
It should also be noted that there are attractive promotions on the development market. Developers offer high discounts on real estate in already completed investments.
At Kadetów street in Warsaw’s Wawer district, Good Finance, you can buy ready-made segments by up to 20 percent. cheaper. Each of the 163-196 sq m houses offered by Good Finance located on plots of 300-550 sq m it is now cheaper by USD 200,000. The cheapest 177-meter segment can be bought for as little as 795,000 USD.
Houses smaller by 15 percent
The price reduction of houses offered at the autumn fair was also generated thanks to a significant, almost 15 percent. decline in their area. Houses sold last year had an average area of 174 sq m, and this year their average area was 148 sq m. Development companies have tailored their offer to today’s needs and capabilities of buyers.
The size of plots of land on which the offered houses are located has also shrunk considerably. The area of the lot decreased by almost a third (by 31.6% according to Open Finance data). The size of an average plot of 510 sq m. during the year it decreased to 350 sq m.
Interestingly, a completely different trend is noticeable in individual construction. From 2006 to the end of 2008, the average area of a residential property built by a natural person had a similar size of 142-144 sq m.
Paradoxically, the crisis brought an increase in the average area of real estate under construction. Since 2009, the average area of individually built houses has increased by over 3 sq m. and currently amounts to 145 sq m, reports Home Broker.