\n\tRomanians love having their own property. Almost every day I hear people telling me about the advantages of "having your own home". Their arguments are usually emotional but still almost all the citizens would prefer to be the owners of one apartment, at least. This trend is similar with the Greek one, where people not only buy apartments for themselves, but sometimes invest "for the children", 10 – 15 years their children become adult persons.\n<\/p>\n
\n\tAlso the housing needs in Romania are enormous. Most of people live in old communistic blocks, which have plenty of technical (and not only) problems nowadays. Others rent apartments by owners who are not polite at all. Plus there are tens of other reasons why people need \/ want to move from their old apartment "to something better".\n<\/p>\n
\n\tThis is why Romanian (and Greek) population considers properties "as part of his life". All these problems (and plenty more) force sometimes many persons to go and "grab" the first good offer available (good according to their own standards ofcourse). And if they don't have the money cash, orthey don't apply for Prima Casa, they can access loan facilities ("now it is easy again!").\n<\/p>\n
\n\t"I really wanted to buy my own home. Despite the expensive interest rate I found, I will proceed"<\/strong> \n\tWhen I try to discuss, asking about the disadvantages of the choice, the reply is usually something like this: "Why? Don't I also have the right to buy a property for me and my family? I deserve the best for my life. How much should I wait, in order for me to change my life's status" etc.\n<\/p>\n \n\tNoone says that you don't deserve, but things are not exactly like this…\n<\/p>\n \n\tA loan with 8 – 10% becomes dangerous<\/strong> \n\tGo to any banker friend of yours and ask him: "Is it safe for me to buy my home through a loan with 10% interest?" He will describe to you why this is not a good choice.\n<\/p>\n \n\t"But there are too many people who bought a property, paying a similar interest and they did not have problems so far"<\/strong> \n\t"Let us collaborate. You will introduce our loans to your clients. The rate will be about 10,5% and you will receive commission". "I don't want"<\/strong> \n\tI tried to explain to them that a 10.5% interest is simply unacceptable for someone who wants to buy his home by loan. The reply was "yes, but the others have higher interests" or "yes, but we don't charge Euribor additionally to this amount". I insisted: "Wherever banks got involved in the development of residential market, they never charged so much. This happened all around the world". "No, we have one of the cheapest interest rates and we really help people to buy the house \/ apartment of their dream".\n<\/p>\n \n\tThey were very surprised when they realised that they left our meeting without signing with me. But how can I sign, in order for me to promote something which I find wrong?\n<\/p>\n \n\tThe American Real Estate bubble was based exactly on the same idea…<\/strong> \n\tWhat happened to the ones who bought a home by paying a high loan interest? More than half of them lost his property<\/strong>. Why? Because they could simply not sustain this kind of loan, this kind of interest, or anything else.\n<\/p>\n \n\tHuge interest rates = just for short term pleasure…<\/strong> \n\t"And what happens if I don't have any other solution? Plus I can not wait forever" one might ask me. If you don't have any other solution, then simply try to find a better loan. If not, then simply "this was not meant to be" for you.<\/strong>\n<\/p>\n \n\t"And to continue renting? I am tired of this" another one might ask me. But it is better to lose a small amount of money and to choose with wisdom and peace your apartment, than to be in a hurry. The same attention should be invested on the loan to acquire the property with.\n<\/p>\n \n\tIf you can not get what you want and interest rates remain at the level of 8 – 10%, you should better rent. Be sure that you will also have your chance in the future. Just please don't be in a hurry, risking to lose all for yourself, your family, your children…<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Romanians love having their own property. Almost every day I hear people telling me about the advantages of "having your own home". Their arguments are usually emotional but still almost all the citizens would prefer to be the owners of one apartment, at least. This trend is similar with the Greek one, where people not […]<\/p>\n","protected":false},"author":3,"featured_media":59454,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[216,17,236],"tags":[],"_links":{"self":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/6149"}],"collection":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/comments?post=6149"}],"version-history":[{"count":0,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/6149\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media\/59454"}],"wp:attachment":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media?parent=6149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/categories?post=6149"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/tags?post=6149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\tMany people check the market for the best offer. Once they consider that they chose the right one, they finally end up talking to their bank as well. There, they usually focus on their ability to get the loan and not at the risks that a loan contract might hide. I have heard plenty of them throughout the years explaining to me that "I really wanted to buy my own home. Despite the expensive interest rate, I will buy it now. This was the only available option I found, but I can not afford to lose this home".\n<\/p>\n
\n\tA housing loan with more than 6% interest is not considered a good option. If we raise the figure, up to 8 – 10%, it becomes dangerous. (I refer to the total interest and all hidden costs, including also Euribor).\n<\/p>\n
\n\tNo, it is not like this. 8% or more is dangerous for your pocket, even your health! This interest rate explodes your monthly instalments and transforms you to someone vulnerable. Why is this? Because you have to pay more money back, for a major period of time. And especially if you pay for instalments more than 30 – 35% of your salary, you will be in risk for many more years to come.\n<\/p>\n
\n\tLast year I met the representatives of a serious lender. They proposed to me to collaborate, in order for my company to introduce them to our clients. This would be an easy "sale" for us, but I refused.\n<\/p>\n
\n\tThe American Real Estate bubble was based exactly on the same idea: "Give loans with high interests to people, without caring if they can pay them back or not. Package these loans, create investment products and sell them".\n<\/p>\n
\n\tMy proposal to you is clear and simple: Don't take a loan with high interest rate<\/strong>.\n<\/p>\n