The economic crisis clearly can`t scare away the luxury housing fans. In September, again appear people willing to draw a loan between 70 000 and even over 100 000 euros for the purchase of a luxury property. This show statistics made by the Credit Center for the past month. Buyers of residential homes for which economic logic is not foreign - from their own experience and as a result of business contacts, they know that now is a good time for investment, buy penthouses, houses, or just more apartments in elite areas. Funding even for large amounts may reach 70% of the cost of housing, experts explain. The growth in requests for the granting of loans is 15 percent in September said from the record Credit Center. The reason is banks that have begun to reduce the interest and offer promotions that are valid until the end of the year and discounts on property insurance, zero per cent tax on repayment of the loan with its own funds. The decrease in interest rates is between 0,2 and 0.8% in Euros and 1% in BGN.
Another reason for the stirring of the market is that banks offer another opportunity to reduce the standard rates - the majority of them offer bonuses for accumulation of used other products or services in the same bank. Most often these are current accounts, transfer of salary, deposit, card accounts that have the client able to receive a preferential interest rate on their mortgage loan. In recent months, financial institutions are becoming more open to individual negotiations and proposals, making it easier for customers to decide to purchase. In the past month specialists note increase in the average size credits for purchase of housing to levels of 32 609 Euros. Our customers' loans are in Euros. Most loans continue to draw more young people with stable incomes who can demonstrate to the credit institution have sound financial status. The largest percentage of loans is between 10 000 and 30 000 Euros. 4.55% of loans are downloaded over 90 000 Euros and 6.24 percent of loans are ranging between 70 000 and 90000.
Almost all mortgage loans in September were for property purchase. For most customers, this is the first and main property. Loans for purchase of plots are not an option, as most buyers of parcels or destroyed houses near the major cities make deals with personal funds. Now there is even financing between 70 and 80 percent of the value of the property. Most buyers are often looking for a loan to finance half the cost of housing.
Distribution of clients by age
Age and % from 01.09.2009 until 30.09.2009
18 - 25 years 4,7%
26 - 35 years 54,3%
36 - 45 years 29,8%
Over 45 years 11,2%
City/ Average size the loan drawn in Euro / Ratio in Euro - BGN in %
Sofia /37 804 91 / 9
Varna /30 680 80 /20
Bourgas /28 920 71 /29
Plovdiv /24 380 76 /24
Banks have started to reduce interest rates on loans and property market is intensifying, but in the last month interest rates on deposits remained high. Eleven banks changed their offers for deposits. Some of them extended the timing of promotional campaigns, others have begun actively offering new deposits, and third corrected in the direction of interest rates decrease. Greatly has been reduced the annual interest offered on term deposits, however, is still too early to speak for anything certain, say specialists.