Buying a home today is it worth it or is it a risk? Expert opinion – idealists / news

Many may ask:Buying a home today is it worth it or is it a risk?The health emergency due to the pandemic, the war in Ukraine, the sudden rise in inflation and the expected rise in interest rates were all factors that inevitably had Impact on the economy. In this context, how is Italian families and what happens to real estate sector? Ideal / News asked Santino Taverna, National President of Fimaa – the Italian Federation of Trade Agents, Confcommercio-Imprese member for Italy.

Health emergency, conflict in Ukraine, high inflation, high interest rates. In this context, how does the real estate market move?

“In 2021, the real estate sector recorded a decisive growth, thanks to the new housing needs that arose in the wake of the Covid-19 pandemic. Now, the increase in inflation with the consequent rise in interest rates and the war in Ukraine could curb the positive wave in the year Past.

As noted by the Bureau of Studies Fima, the sector appears to be reacting favorably to the increasing demand for housing, even if supply begins to decline. It must be said that, historically, in economic cycles similar to those we are experiencing, it has always been asserted as a ‘safe haven’ par excellence.

What happened in the first half of the year and what does the second half look like?

After the 2021 boom, the number of home sales grew again in the first quarter of 2022, albeit to a lesser degree.

Our research division highlighted a stable trend in residential transactions, which has remained at the levels of the past four months, albeit with limited growth rates. Demand remains dynamic in contrast to diminishing supply. The real estate market in the early part of the year was driven by concessions (extended throughout 2022) for youth under 36 and by investment buying.

According to the directions of Fimaa operators, the residential sales market in the coming months should continue at the same levels as in the first four months of the year.”

In your experience, is brick still interesting to Italians?

“Culturally, Italians have a special penchant for buying real estate. In Italy, 75% of families own their homes, and the traditional passion of Italians for bricks has strengthened in recent months, regardless of a period of market uncertainty or high inflation. It is clearly indisputable that That bricks are still safe for savings.”

How does uncertainty about the economic situation, rising inflation and an expected rise in interest rates affect Italian households?

“Rising costs of energy and raw materials, exacerbated by the conflict between Russia and Ukraine, have increased inflation. A side that reduces the purchasing power of families and companies. To contain inflation, central banks, including the European Bank, have announced restrictive measures by increasing the cost of money. This results in a slight increase in mortgage and loan interest rates.

The advice, for those who need a mortgage to buy a home, should be followed by a credit advisor who knows how to investigate the best offers in the market, while respecting the income capabilities of those intending to access the mortgage, and so handle the sale calmly and safely.”

Is there any advice for someone who wants to buy and doesn’t know whether to do it now or wait to see what happens in the coming months? Buying a home today is it worth it or is it a risk?

“The great propensity to save Italian families has always been a force that is unlikely to fail in the future. Given increases in rents in relation to loan installments to purchase and against property values ​​that are still affordable, real estate investing still allows for interesting returns.

It must also be kept in mind that in periods of high inflation, brick has always been a natural haven of saving thanks to its natural revaluation in the medium to long term. Real estate investment has never betrayed as long as, in these complex market stages, we rely on expert operators who are able to discern quality and energy efficiency characteristics. A real estate agent who knows the dynamics of the area in which he operates is definitely a guarantee of a safe and peaceful purchase.”

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