Lots of parents try to make sure their kids won’t have any problem in the future moving in their new apartments. For making them easier to create a home, the parents buy an apartment for the kids they can move in when they’ve finished their studies; thus they don’t have to take a loan to be able to get their own apartments.Favorable Loan Conditions and Property Investment Options
Now it’s worth to buy an apartment for the kids even if they haven’t finished their studies or just have started high school. It’s not recommended to postpone the purchase, since property prices have begun to rise, favorable loan conditions are available, and it’s also a good decision to buy property as an investment, since we can realize a much higher yield than with opening a savings account.
Subletting the Apartment a 7-9 Percent Yield Can be Realized
For example, if the kid is expected to move out in10 years, but the family buys the apartment now, subletting it during those 10 years they can realize a 7-9 percent yield, compared to the 6.8 percent interest of a loan, so now it’s also worth to apply for a loan to buy an apartment.
Property Prices Finally Started to Rise
Apartments lost 22.8 percent of their value since the beginning of the crisis, but this tendency seems to be finished, moreover, property prices started to rise and further increase is expected. Thus it’s not recommended to wait for our kids to grow up; it’s better to buy an apartment for them now.
Source:
www.portfolio.hu
