Tihomir Toshev: April beats all records in history by newly granted mortgage loans
“Covid has led people into looking for bigger homes. Household savings have grown substantially. This provoked an increased interest in the property market. However, people who have properties do not want to sell.” This is what credit consultant Tihomir Toshev told BNR.
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“Covid has led people into looking for bigger homes. Household savings have grown substantially. This provoked an increased interest in the property market. However, people who have properties do not want to sell.”
This is what credit consultant Tihomir Toshev told BNR.
Sellers wonder what to do with the money if they sell their property, even for a good price.
“The interest in buying properties is very high. Another driver of the real estate market is the low interest rates on mortgages – 2.5-2.9%. For April alone, newly granted mortgage loans amount to BGN 445 million, this is a record high on a monthly basis since the existence of banks and mortgage loans. The interest in properties will continue in the coming year as well.”
In the show “Something more” Toshev added:
“A large part of the price growth is dictated not only by the fact that the demand exceeds the supply, but also by the fact that the cost of construction is rising. Therefore, logically, there is no bubble in the real estate market. But if within a year or two this growth accelerates and starts to become more significant, it should raise a red flag in your head”.
He pointed out that the assessment of the credit risk was not underestimated by the banks. And he advised people to review their loan terms at least once a year.
The consultant specified that the epidemic stimulated Bulgarians to buy vacation properties.
The rental market has suffered a lot, added the credit consultant.