Received advice for purchasing a property with a home loan
Updated News: The building market noted a shift in prices during 2024-2025, with new construction offering lower costs instead of the anticipated increase. However, this trend isn't as drastic as one might expect due to the escalating construction expenses, particularly steel and material costs [1][5].
The market is dominated by buyers availing government-backed mortgage schemes to maintain demand, introduced in 2020. These programs offer subsidized mortgage rates without stringent buyer requirements, crucial considering the economic impact of the pandemic [1].
That said, expect mortgage loans to continue relying on these state programs with little expansion in affordability. Tranched mortgages, where loan installments are linked to construction progress, may face more conservative lending due to the predicted reduction in new residential projects [1].
With developers unable to slash prices significantly and affordable mortgage credit in short supply, the volume of new residential construction projects is predicted to decrease in 2024-2025 [1].
In essence, prices in new construction remain moderate despite increased costs; mortgage lending relies heavily on state schemes with limited room for expansion; tranched mortgages could become riskier due to reduced projects; and housing construction volumes will likely decline, affected by high costs and buyer purchasing power constraints [1].
So, when searching for a new home, it's essential to consider mortgage schemes, tranched mortgages, and the completion date and reliability of the builder [6]. Choose projects scheduled for completion in the current quarter or this year for optimal results.
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Tags: #Mortgage #RealEstate
Despite the escalating construction expenses, the prices in new construction remain moderate due to a shift in costs. This trend in the building market, where new construction offers lower costs instead of the anticipated increase, is influenced by the reliance on government-backed mortgage schemes for financing [1].
With developers struggling to slash prices significantly and affordable mortgage credit in short supply, it's crucial for individuals searching for a new home to contemplate mortgage schemes and the reliability of the builder [6].
