The current pandemic is changing the game in the real estate industry rules. “The financing of residential property, the Corona leads to crisis to new questions and needs on the customer side and in the industry to a digitisation thrust,” explains Jörg Utecht, Chairman of the management Board of Interhyp group. Shutdown and Social Distancing may require from the point of view of financial experts, innovative ways for the advice, as well as the purchasing and financing processes. the real estate Pro answers the most important questions in this context.
it Is in spite of the Corona-crisis is possible to get a financing?
Many banks have converted to Home Office and digital processes, such as Interhyp, brokers of real estate financing, notes. Appointments be taken by telephone or video conference. Even apartment inspections via video technology to perform.
Interhyp as a facilitator of private mortgages since the beginning of March, exclusively on the telephone advice. Real estate-search the Corona leads-crisis restrictions on visits, but speeds up the digitization. If the individual visits take place, then subject to compliance with the rules and spacing rules. Notary appointments are possible, if all participants adhere to the distance rules.
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What happens when borrowers get into payment difficulties?
a number of banks responding “at present, accommodating and flexible,” says expert Utecht. Some would offer the possibility to move firmly agreed unscheduled repayments. Or also, the repayment over several months to reduce or suspend. “In the case of payment difficulties of private people in the Corona, with the crisis in a three-month deferral of interest and principal performance been recently regulated by law,” explains expert Utecht.
Nevertheless, he rate borrowers to be well informed and in the case of payment difficulties on the credit institution to approach. The game rooms open for individual solutions. Redemption suspensions, according to an expert in Downing street for longer than regulated by law possible.
What is in the Corona-crisis for the Finance?
More than ever applicable: “The funding has to be now and in the future for the borrower to be viable.” Expert Utecht advises, especially in the current Situation to prudence and a well-thought-out financing. Loans with long fixed-Interest periods of more than ten years. Equally important is a high early repayment is about three percent – it reduces the period of repayment. Customers should also have opportunities to flexibly respond to situations. To free repayment rate of exchange or free options to special redemptions include:.
The use of equity should stay to the rule that much equity, the interest condition is improving. At a minimum, the purchase costs should be covered by equity. These include land transfer tax, realtor fees and notary costs. Recommended were, in many cases, in addition, twenty percent of the purchase price.
What is the impact of the crisis on the mortgage?
According to Interhyp in the mortgage interest rates fluctuate for a few weeks more than usual. Nevertheless, real estate buyers before were still favorable interest rates at a relatively low level. There is no reason for hasty decisions: “The current survey for the Interhyp-interest rate report shows that the majority of the ten interviewed credit institutions over the year, assuming constant interest rates, some expect slightly rising interest rates,” said Interhyp. (Display)
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What will be the impact on the demand for real estate and Finance?
the precise effects of The Corona-crisis on the real estate demand is currently difficult to assess. But expert Utecht is sure: “those interested on buying and selling side, to think through the crisis differently about the Investment, and rate it in some cases.
In recent years, the property was in demand as a tangible asset in times of crisis. Even now, it lacks many investors to attractive investment alternatives. “Especially for owner-occupiers the property is one promises a possible prospect of development in value mainly as a home, the security, but also independence,” – said the expert.
Slight price declines could result in a stabilizing of the economy and continued low interest rates, the acquisition of residential property more attractive. So you Finance your home, Our PDF guide shows you how to find cheap loans, pitfalls to bypass and get money from the state.To the PDF guide
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