“I earn 5.000 euro / month. I will buy an apartment and pay installment of 4.300 euro / month” “You should be arrested…”

I come from Katerini, a medium sized Greek city, so I think I understand all these Romanian people who come to Bucharest from a smaller home town. I tend to know their psychology and maybe even their approach to life. Maybe this is the reason why I have several friends belonging to this category. Now I have one less. And I am not ashamed to share the reason with you, so as at least maybe to protect someone else…

Double or triple size of apartment…
He works in a big company, with a salary of 5.000 euro / month. He started from very low and his wife is also coming from a poor family
Today, while millions of people all around the world are losing their jobs, he is sleeping peacefully, knowing that his work and salary are well protected, because of the results he has. Is everything ok? Well no…

They decided to try to have their first child. And along with this nice intention, the problems appeared too. “I cant live anymore at 70 sq.m., I need at least 150 – 200, especially when we will have a baby. You are working so hard. Why do you do this, if you can not enjoy a larger, more beautiful apartment in an area which suits our profile and our position in society?“. This is what she told me, Ilia. And she is right up to a point”.

A tough negotiation, template for seminars…
“So what will you do?” “She has found an apartment in a very nice area, a really cute one. The owner will sell it to us only for 550.000 euro” “Wow, so you really managed to steal him during negotiation” “Well not me, my wife. She found it, saw it and negotiated the price. From 580.000, she obtained 550.000 euro”. “Great, she should be a trainer, teaching all of us how the correct negotiations should be done. So, what are you planning to do?” “I am collecting loans, so as to obtain it” “Are you serious?” “Of course. And I will use all my connections, so as to pay not more than 4.300 euro / month, so as to be able to live with the rest 700“. “Are you nuts? You should be… arrested for the way you are thinking…” After I talked to him using very bad words, he changed his mind and went back home to convince his wife…

None of the solutions worked…
“What to do? It is not my decision. We had a huge fight and she told me in the end that I don’t love her and I don’t take into consideration our baby“. “Did you adopt one?” “No, cut the crap, the one we want to have. I am desperate, I don’t know what to do”. “Do you want drastical solutions, or just to hear nice words?” “Let us start with the drastical ones…”

“Sit down with her and explain that it is dangerous for your family to spend more than 30 – 35% of your income for a housing loan, especially when she doesn’t work. It is better to use the rest of the money in other directions, so as to travel together around the world”. “I will have to do this anyway, anything else?”
“Tell her that you may be fired, or you may have to accept a lower salary in your work”. “She says she doesn’t care and she can not wait anymore. Anything else?”
“In this case, find a smaller “palace”, with a budget of 200.000  – 250.000 euro maximum. You will have plenty of choices today and your installment will be reasonable”. “Anything else?”

“We will have the best home of all”
He started telling me that… “You know… the more I think about it… the more I find the idea not so bad. It will provide added value to my life and also to my prestige in society“. “But you will risk your future, your career, your life, everything. And you will be blocked in an expensive apartment, having to pay almost all your money every month, during the worst crisis in the last decades“.
In the end I understood that he probably agreed with his wife and he pretended the victim, although he was not. I tried to save him, as I would do this for any friend of mine. I even asked to meet him together with his wife. “So what? If it happens for my husband to lose his job in the future, we will see then. Now we will have the best home of all“, she replied to me after all my arguments. Apparently almost all their circle of friendly couples have bought expensive properties in the past and they did not = big shame…

Several thousands of people blocked in expensive installments they can not afford
These days they negotiate the final details with the owner of the property. They are upset on me, as I was the only one who didn’t tell them congratulations for the excellent choice.
This friend is not the only one… It looks that there are still a lot of people who did not learn their lesson here in Romania. They refuse to respect today’s bad financial situation, they are focused only on how they will live good NOW, without to care about tomorrow.
It is funny, but it seems that I am more worried for my ex friend than himself for the future of his family. He didn’t care to notice that there already several thousands of people around us, blocked in the following situation: “having an expensive installment for apartment for the next 10 – 30 years, matching it with an expensive installment for car, while they barely manage to survive”. They became vulnerable for similar reasons with this couple.

This consumption model doesn’t work anymore
When I read analyses about the market, most of the times I don’t read that the problem is not solved if we spread money to people today, but if we initiate the healthy consumption to be activated again. The consumption model “I sell my future so as to live good today” doesn’t work anymore and it will bring many more problems to Romania in the near future.

“You’ll see”, as also Madonna sings…(http://www.youtube.com/watch?v=Oa_9CEhM0EQ)