Real Estate /
Poland's apartment prices continue to fall [1844]
As I said, I want to learn from you so please explain how a person who bought a house/apartment for (say) 200,000 zloty in 2004 and still resides at the same address is facing a cataclysm of the first order? Are you saying that their house/apartment is now worth 80,000 zloty?
Not at all. 95% of house holders do not have a mortgage and either own out right or live in cheap accommodation. The mortgage holders are - most probably - recent buyers who are stuffed. Foreign currency mortgage holders are possible even worse off.
Yes, which means a gigantic bubble.
No necessary so, it depends on inflation (which has been very high) and the prices to start with (which were low). Add to the mix the small numbers of mortgage holders who are exposed does not guarantee a big crash or indicate a bubble.
What is far more important is afford-ability (bad, prices are too high), the unemployment/confidence situation (going bad) in Poland and credit availability (very bad, Western banks are removing capital; to comply with stricter banking laws)
lol,, ahahahahahaha what do you think they bought them with ?Holy Communion money? Pulling at straws man.
We have already gone over this. Poles have very high saving as a percent of income.
The relevance of the 3rd question is with reference to your statement :-
But how important will borrowed money be to the future expected rise in prices? I'd say very little as banks are caping lending at low levels compared to prices. The sort of people who could afford big mortgages in the past are probably over strained - the people with the potential borrowing ability to cause future price rises.
