Anyone who wants to buy a property is wondering when is the right time to buy. In addition to the budget available to the buyer, the general situation in the real estate market is very important.
Buyers should inquire before buying when is the right time to buy a property. The favorable situation for the purchase of real estate depends on many factors, and one of the most important is the state subsidy measures for the purchase of real estate and the variation of the increase or decrease of real estate prices.
Given the current situation, there are many who are postponing the purchase of real estate specifically the apartment, all because of the tender for subsidizing housing loans in accordance with the Law on Subsidizing Housing Loans, which is scheduled for September this year. Namely, based on the aforementioned law, all those who bought an apartment after its enactment were subsidized by a installment of a housing loan in the amount of half of the monthly loan installment. In the first two times, the subsidies were agreed for as much as four years, and on this third occasion, the state will pay the subsidies for a period of five years. Although state subsidies are indeed a step forward, it should be borne in mind that property owners or sellers took advantage of the moment and raised the prices of real estate they sell. In this way, they have in a way annulled the convenience that subsidies bring with them. Market competition dictates real estate prices, so the scales are flying really high. Thus, the level of real estate prices in Croatia has risen so much that last year it was at the very top in terms of real estate prices in the European Union. The data of the Central Bureau of Statistics, which announced that the prices of a square meter in Croatia in the second half of 2018 increased by 10.4% or to 10,863 kuna, also show that real estate prices are growing dizzyingly.
Based on the proposal to amend the Law on Subsidizing Housing Loans, subsidies now refer to the term household, which means that they apply to families as well as to any other community of people living in a joint household and jointly covering living expenses such as utilities and the like.
This proposal remains with the previous legal extension of subsidies for an additional two years for each child born during the subsidy. Therefore, if a family had one child at the time of exercising the right to the subsidy and then receives one or more children during the subsidy, for each child the subsidy is extended by two years, ie from five to seven years, nine, etc.
The increase in prices per square meter also occurred with the purchase of arable land, ie agricultural land. Thus, those who decide to buy arable land will now have to set aside a slightly larger amount, given that statistical data show that in 2018 the average price of purchased meadows was 12,680 kuna, which is 450 kuna more than in the previous year, and pasture 13,179 kuna, which is HRK 789 more than in the previous year.
Whether the trend of rising real estate prices will continue and how long it will last, we will see, but one thing is for sure - the right time to buy real estate is always the one that is most favorable for the buyer. By providing detailed information on the situation on the real estate market, using state measures to subsidize loans and using the services of real estate agencies in choosing the right property and the time to buy it, you will certainly not go wrong.
Our agents are informed about all the latest measures and changes in the law, tenders and current subsidies, so feel free to contact us with all questions and concerns.
