In 2019 we'll have an even greater expansion on new construction sites, low mortgage interests and a high cost of living in the city center. If you are buying or selling a property this year, you must learn these five facts about property sale that will make the entire process bearable and even pleasurable.
#1 Mortgage loans are more affordable than ever
In 2018 banks started offering low mortgage interests. Along with low interest, banks stopped charging additional costs for their service fees. A lot of banks stopped asking for mandatory insurance at the national corporation, to reduce the initial cost of getting a housing loan additionally. If you're selling a property, be open to selling to housing loan buyers, as the process of obtaining credit is much simpler now.
In 2019 Euribor will stay negative, which will entail lower interest rates that range from 3.19 - 4.5%. Rates are determined by the type of loan, the currency (Serbian dinars or Euro) and by the kind of interest rate. Lower charges are reserved for floating rates and longer repayment. You can get a fixed rate only for 15 and 20 years mortgage loans, but if you want a 30-year mortgage loan, you'll have to take a mortgage with a floating rate.
There are different opinions about whether it is better to buy a property through a housing loan or to rent an apartment while saving money, but in Serbia, this dilemma is in favor of purchasing a property through a bank loan. The cost of the monthly mortgage rate is lower than the monthly rent, plus you will in your own home instead of being a tenant.
# 2 Ask around about real estate investors
We would all love to love in new buildings, with modern hallways, neat parking and new elevators. The expansion of new residential complexes in Belgrade and Novi Sad is at its peak now. But even with such substantial offer of new apartments for sale, there are still more buyers than there are apartments. Naturally, people want to live in new apartments that were designed for comfort and to meet the needs of modern living.
Today, we seek for large living rooms, want only built-in closets, open balconies and natural tones that will allow us to experiment and give our home a personal touch. Buying a new apartment is for many young people the best choice, regardless of the price.
We can't deny that it's a wonderful feeling to buy a new apartment in a new building, but we must warn you to ask around about the commercial real estate investors. There are so many construction sites and new buildings that have to be completed for a very short time, so sometimes to speed up the process investors try to save on time and material. Hire an expert advisor (an architect or a construction engineer) and ask them to give you professional advice.
#3 Older apartments as a wise choice
Old apartments are equally popular as the new ones, especially among buyers who are not in a hurry to move in and who can afford a few months of renovation work. The renovation cost for a 70m2 apartment in Belgrade will cost you from 5000 to 10000 euros. Depending on what sort of work you need to do, the price can vary, but new homeowners usually renovate electrical wiring and plumbing and do a complete makeover to the bathroom. They also invest in new flooring and tiles. Everything else can be done after the move it, especially buying the furniture.
Why should you buy an older apartment and renovate it? It's not that we're crazy about the character of older apartments, it's the quality we advise you should keep an eye on. Quite often you can buy a charming apartment at your favorite location and invest just a little in renovations. When you're renovating, you are the sole investors. Therefore you are the one who decides upon the material, floor tiles, wires, and pipes.
Sometimes an older apartment with renovation will cost you the same as the new apartment, but you will probably get it at a better location. A lot more often this sort of investment really pays off.
#4 There's no such thing as a fixed price
Not a lot of real estate agents will tell you this, but there is no such thing as a fixed price. Maybe, if the price is really low, but more often property owners list their properties at a higher price to have a chance to negotiate after. Every real estate agency that has a brokerage agreement with only one side will try to please the instructing party. However, even though it's the property owner that pays the commission to us, we can never blindly act on behalf of their side. Without reaching out to the buyer, there wouldn't be a successful sale!
That's why we offer the lowest commission on the market and always advise our clients to start with a higher price, but be open to lowering the price to sell. We need to agree on the amount that's close to the market value. To avoid conflict of interest, we insist on meeting with the buyer directly, without our agent present at the viewing. That's your time to get to know each other, to learn about their plans, budget, and when they want to move in. Buyers can give you an offer, and our agents will contact both of you to start the negotiation process and help you to seal the deal.
#5 Property sale doesn't have to be a stressful process
Everyone will tell you that property sale is one hell of a process and that it's very hard to go through all of it with a positive attitude. But, what exactly causes you stress:
So many different property viewings - with us you will only meet generally interested buyers that are already ready to give you an offer because they already know how the property looks like.
High commission - we offer the lowest commission on the market and not because we don't invest in the sale process, it's because we use technology to speed up the process and optimize the experience and thereby save money and offer competitive pricing.
Lack of information - administrative and legislative procedures are a nightmare to everyone, especially to someone who's selling a property for the first time. That's why our real estate agents teamed up with our legal team, and that's why they prepare contracts, give you professional advice and check your documentation. We help you to buy or sell a house, an apartment or an office space with ease and stress-free.
Whether you're selling your first apartment because you're looking for a bigger one, or you're getting a mortgage loan to buy an apartment in construction, use our resources to learn everything about property sale. We are here to help you buy your dream apartment and to make your property sale in Belgrade and Novi Sad a pleasurable experience.
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