Inflation rose to 10% at the beginning of the year, and people are cutting low-interest savings in banks faster than expected. In times of uncertainty, buying property has always been the safest investment and protection against inflation. While the value of money is falling, the opposite is true of real estate. Last year, the price of new flats rose by more than 20%, this year, according to Central Group estimates, it will rise by another 5 to 10%. Central Group believes in market stability. In addition, it guarantees a refund to all clients who buy an apartment from him by 31 March.
Inflation rose to 9.9% in January and is the highest since July 1998. Money in people’s savings accounts is rapidly declining, with interest rates hovering around 3%, well below inflation. On the contrary, the value of real estate has been growing for a long time. Since 2015, the price of new flats has increased by an average of 15% per year, and overall it has risen by almost 130% over that time. Central Group expects that price growth, albeit at a slightly slower pace, will continue.
“We believe in the quality of our apartments and the overall stability of the market. That is why people with us can now take advantage of the Money Back Guarantee special offer when concluding a contract by 31 March. This guarantee applies to all methods of financing and to all almost 600 apartments from our current offer. After concluding the contract, they can terminate the contract themselves at any time until the apartment is completed, and we will return all the money paid to them,” says Michaela Tomášková, Executive Director of Central Group. Therefore, clients do not have to worry about possible unfavorable economic developments; at Central Group, they are always sure that they will not lose their invested funds.
Mortgages available only until the end of March:
Until March 31, people also have time to take advantage of cheaper mortgages before conditions tighten. The new CNB regulations will come into force on 1 April. At least 20% of its value will need to be saved for a new apartment. In addition, it will be possible to take out a loan only up to 8.5 times the net annual income and the total repayment of all loans may not exceed 45% of a person’s net monthly income. Exceptions only apply to people under 36 years of age. According to Central Group statistics, they make up 42% of apartment loan applicants. The remaining 58% of clients will not be able to achieve the benefits.
“If you are considering buying an apartment on credit, you should definitely hurry up and arrange a mortgage with the current more favorable conditions,” says Tomášková.
There is no need to worry about mortgages:
In January, the average mortgage rate, according to the Fincentrum Hypoindex indicator, rose to 3.43 percent from 2.99 percent in December. This is the largest increase since 2003, when the indicator is monitored. However, loans are still advantageous because they remain below inflation and, moreover, their rise in price will continue. According to analyst estimates, the mortgage rate could attack up to 6% this year.
“We perceive people’s fears about the turbulent development of the market and the possible inability to repay the mortgage in the future. Therefore, when buying an apartment, we also offer people the opportunity to use a preferential mortgage with a money back guarantee. This means that if people have difficulty repaying, we will buy the apartment from them. The possibility of repurchase and refund of all money is valid for 5 years from completion,” concludes Tomášková.
Source: Central Group
