{"id":61765,"date":"2015-10-20T10:45:58","date_gmt":"2015-10-20T07:45:58","guid":{"rendered":"http:\/\/www.iliaspapageorgiadis.ro\/english\/?p=61765"},"modified":"2015-10-20T10:48:26","modified_gmt":"2015-10-20T07:48:26","slug":"an-advantage-of-the-2008-2013-real-estate-crisis-more-careful-end-buyers","status":"publish","type":"post","link":"http:\/\/www.iliaspapageorgiadis.ro\/english\/2015\/10\/20\/an-advantage-of-the-2008-2013-real-estate-crisis-more-careful-end-buyers\/","title":{"rendered":"An advantage of the 2008 &#8211; 2013 Real Estate crisis:  More careful end-buyers"},"content":{"rendered":"<p>\n\t&#8211; &ldquo;We simply did not know, Ilia&hellip; we thought that life was a game&hellip; our salaries and income was increasing year after year, the prices of the properties were rising week by week&hellip; we were not realizing what it meant for us to buy a very expensive property or sign a 30 years&rsquo; loan, committing a high monthly cost&hellip;&rdquo;\n<\/p>\n<p>\n\t&#8211; &ldquo;Allow me to add that even when someone was telling you that it was a wrong strategy to follow, you were getting upset and usually you were not listening&hellip;&rdquo;\n<\/p>\n<p>\n\t&#8211; &ldquo;Correct. But you know&hellip; we are Romanians&hellip; it was easy, we could not wait&hellip; we were not ready for all these&hellip;&rdquo;\n<\/p>\n<p>\n\t&#8211; &ldquo;It happens in life. Nowadays a serious part of the society has changed&rdquo;\n<\/p>\n<p>\n\t&#8211; &ldquo;Indeed. Now there are many people who will refuse a loan that will risk their existence&hellip; we know how it is to go up and then land down&hellip; you see&hellip; we, as a nation, were used to experience only the difficulties of life&hellip; then we found out the &ldquo;roller coaster&rdquo; and today we understand better when you write about the cycles of economy etc&hellip;&rdquo;\n<\/p>\n<p>\n\tSo it is not by coincidence that <a href=\"http:\/\/www.iliaspapageorgiadis.ro\/english\/2015\/10\/16\/the-healthiest-real-estate-market-that-romania-experienced-since-1990-advantages-and-challenges-ahead\/\">we have entered in a new, positive and healthy Real Estate cycle<\/a>. This happens also due to the fact that many of the participants in the market have matured&hellip;\n<\/p>\n<h3>\n\tEnd-buyers have changed<br \/>\n<\/h3>\n<p>\n\tMy friend, a well-known and respected journalist, could not describe better the changes in the approach of the Romanian middle class when it comes to buying a property.\n<\/p>\n<ul style=\"margin-left: 40px;\">\n<li>\n\t\tFrom &ldquo;Today I think &ndash; tomorrow I see &ndash; the day after I am at the notary&rdquo;, we switched to &ldquo;I check, analyze and try to expand as far as my financial ability allows me to&rdquo;.\n\t<\/li>\n<li>\n\t\tMany end-buyers check tens of properties before to choose the right one. <strong>Sometimes they are the best &ldquo;market analysts&rdquo;, able to tell you details about every project and a wide list of old apartments in an area, being classified according to the period they were built.<\/strong>\n\t<\/li>\n<li>\n\t\tEducated by Mr. Isarescu&rsquo;s banking rules, they have abandoned speculation and aggressive moves (I insist that his decisions have helped the middle class so as to build new investment principles)\n\t<\/li>\n<\/ul>\n<p>\n\t<strong>In 2006 &ndash; 2008 the demand for new apartments was speculative:<\/strong>\n<\/p>\n<ul style=\"margin-left: 40px;\">\n<li>\n\t\tFunds were reserving whole buildings, with &ldquo;10% advance and the difference in the end&rdquo;\n\t<\/li>\n<li>\n\t\tBanks were financing almost all developments and all speculative moves\n\t<\/li>\n<li>\n\t\tEnd-buyers were purchasing properties based on &ldquo;dreams&rdquo;\n\t<\/li>\n<li>\n\t\tPeople were extending their risk appetite much more than they could handle\n\t<\/li>\n<li>\n\t\tPrices were rising every month\n\t<\/li>\n<\/ul>\n<p>\n\t<strong>In 2015 &ndash; 2018 the demand is real, solid and based on arguments:<\/strong>\n<\/p>\n<ul style=\"margin-left: 40px;\">\n<li>\n\t\tSpeculative funds are not here (as also the banks don&rsquo;t finance this kind of moves)\n\t<\/li>\n<li>\n\t\tEnd-buyers purchase what they think that they can afford. So after several years of crisis, they are more conservative\n\t<\/li>\n<li>\n\t\tThe banks offer housing loans at healthy, European level interest rates.\n\t<\/li>\n<li>\n\t\tMany people have cash, collected after years of work\n\t<\/li>\n<li>\n\t\tYou don&rsquo;t see citizens with 2.000 Euro \/ month family income targeting properties of 300.000 &ndash; 500.000 Euro\n\t<\/li>\n<li>\n\t\tPrices are quite stable and when they rise, this happens due to increased demand in particular areas\n\t<\/li>\n<li>\n\t\tThe interest rates for deposits are almost 0, thus there is no alternative for the middle class so as to add value to its earnings.\n\t<\/li>\n<li>\n\t\tThe housing needs of Bucharest citizens are real and will not be covered in the following 20 years\n\t<\/li>\n<li>\n\t\tThe salaries paid to people are &ldquo;post crisis ones&rdquo;, exaggerations are rare\n\t<\/li>\n<\/ul>\n<h3>\n\tThe fuel for the growth in the years to come<br \/>\n<\/h3>\n<p>\n\t<a href=\"http:\/\/www.iliaspapageorgiadis.ro\/english\/2015\/09\/23\/market-analysis-the-3-romanias-and-the-one-you-should-invest-in\/\">Romania is not &ldquo;one country&rdquo;, but &ldquo;3 countries in one&rdquo;.<\/a> So when we talk about the market, we don&rsquo;t refer to the society as in whole.\n<\/p>\n<p>\n\tThe Romanian Residential sector has some excellent years ahead, if of course the challenges will not cause unexpected problems. <strong>Still, we witness a healthy market that grows slowly each year, based on real demand, by real people who cover real needs of their families.<\/strong>\n<\/p>\n<p>\n\tNowadays, this is the reality in Romania and all indicators show us that the country will continue growing in the years to come (for different reasons).\n<\/p>\n<p>\n\tWhat is your opinion?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8211; &ldquo;We simply did not know, Ilia&hellip; we thought that life was a game&hellip; our salaries and income was increasing year after year, the prices of the properties were rising week by week&hellip; we were not realizing what it meant for us to buy a very expensive property or sign a 30 years&rsquo; loan, committing [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":59454,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[21,17],"tags":[255,214,180],"_links":{"self":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/61765"}],"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=61765"}],"version-history":[{"count":0,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/61765\/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=61765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/categories?post=61765"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/tags?post=61765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}