Reasonably, it is gradually becoming more developed and competitive. More options are becoming available for property buyers in Hungary, both for locals and foreign buyers. With a maximum loan to value of 80% for new and off-plan property and 70% for re-sale property, Hungary still has some way to go before its mortgage market offers the choice that can be found in the more mature lending markets of Western Europe or the US. ... Finance is available, but not too much of it. What I mean by this is that 70% to 80% mortgages are available, not 100% mortgages which are readily available in countries like the UK, Ireland, and Spain. Where is the plus point here? For the investor who takes a medium to long term view on the Hungarian property market this is excellent news. If everybody who qualified for a mortgage in Hungary could do so just by putting down a small deposit or even no deposit at all, and if interest rates were low, there is no doubt that the market would be experiencing a major boom right now. This boom would be driven both by domestic demand and foreign investors and prices would soar. This is not happening, yet! If it was you would be purchasing too late and would have missed out on a lot of growth. Are interest only mortgages available? Yes. There is a type of interest only mortgage available. It is interest only for the first 5 years then becomes a repayment mortgage in year six. This is a new development on the Hungarian mortgage market and a sign that it is developing. ... Interest only is new in Hungary we believe that it will catch on.
Where is the plus point here? For the investor who takes a medium to long term view on the Hungarian property market this is excellent news.
If everybody who qualified for a mortgage in Hungary could do so just by putting down a small deposit or even no deposit at all, and if interest rates were low, there is no doubt that the market would be experiencing a major boom right now. This boom would be driven both by domestic demand and foreign investors and prices would soar. This is not happening, yet! If it was you would be purchasing too late and would have missed out on a lot of growth.
Are interest only mortgages available?
Yes. There is a type of interest only mortgage available. It is interest only for the first 5 years then becomes a repayment mortgage in year six. This is a new development on the Hungarian mortgage market and a sign that it is developing. ...
Interest only is new in Hungary we believe that it will catch on.
No little Hungary, no no nooooooooooooo!, says Hamburger over at MoA from whom I shamelessly stole this post -- hat tip, hat tip, hat tip and flowers. (I altered the emphasis just a tad.) The difference between theory and practise in practise ...
Let's all go insane, shall we?
Meanwhile - would you buy a used bank from this man?
Charles Prince (and who with a name like that could be anything other than leathery and patrician?) has been resigned (sic) from Citigroup for not being profitable enough.
You made me check some articles in the local press on the subject -- and I found local estate traders advocating the same. Uuuugh. Whether the government and big banks will follow suit, we will see.
At any rate, Hungary had a housing downturn in the last 2-3 years, and analysts say a present upturn is just a blip before further downturn. So the urge to use some booster might prove irresistible... unless the US/British example will blow up spectacularly enough for the local yahoos to notice. *Lunatic*, n. One whose delusions are out of fashion.
there's something important about that idea.
something about hypernutrition producing distortion and dysfunction, aka resource glut producing insanity, maybe related to the notorious foolishness and irrelevance of hereditary aristos after the Nth generation (some say 2 or 3) and the notorious lapse into frivolity and psychotic delusions of grandeur in the elite of wealthy empires...
too much affluence/security makes us not only complacent but stupid?
hmmmm (food for thought) The difference between theory and practise in practise ...
I don't completely agree, but it's an interesting point.
What is wrong with this reasoning? We have met the enemy, and he is us — Pogo
Hence 'rational market assessment.'
On the particular of the yield curve, the only part where some serious forecasting gets into it is IMHO the first 5 years, because all traders are short sighted. If actual sensible inflation trends over 20/30 years were priced in, long term rates should be 40% and the states would quickly rediscover the virtue of balanced budgets.
As to what this would do to the markets, well they would get even more greedy and short-termist actually, because the tail-end of future cash flows would be totally worthless. But at least the greediest would exit the home mortgage market since it's very long duration. Pierre
kidding, right?
o yes, definitely
most assuredly so...
a little hunger is a fine stimulus.
the predator class raise their children in a bubble, on koolaide.
there's no neurotic like rich-neurotic!
the kind of 'solidarity' they share is inauthentic, based on class.
if the poor are miserable, they know whom to blame, the rich have only therapy...
'relax, you're rich, you can afford to....'
lol ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
