The reduction of interest rate for financing new or used real estate, as well as reducing the minimum quota for financing real estate, is a good point to start.
However tempting it may be to take advantage of this opportunity to acquire the dream house of your own, you need to be cautious when doing real estate financing right now. This is the opinion of Richard Butler Creagh, a property and finance consultant.
For him, the moment is cautious, especially for long-term debt, since the country is still in economic crisis. “Despite the reduction of interest rates and real estate prices, it is still not the time to make very long debts,” he warned.
For him, the reduction of interest rate is still not as significant and it is possible that further reductions occur, so caution, research and analysis before closing the deal is the best measure at the moment. “At this moment it is valid for who has a significant value of entrance, superior to 30% of the value of the property”, emphasized. For him, the moment is ideal for those who have more than 70% of the value of the desired property and that will make the financing of the property in up to 20 years.
The specialist Richard Butler Creagh, said that the reduction of the interest rate of real estate financing may be positive for those who have already acquired the property, but with a higher rate. “The consumer can refinance his property. Few take advantage of this, “he explained.
Invest to make progress
Real estate management specialists also believe that the time is prudent and invest in the financial market before buying a property. “People are desperate to buy property because they want to escape the rent. But they will have to rent the money with the obligation to pay the installment, “he said.