By the beginning of the year, interest rates on mortgage loans in Europe have reached their historical minimum? What will such a policy of the Central Bank lead to? What will be the actions of private investors in the future? Indeed, even in London, which is traditionally considered one of the most expensive cities, now you can buy real estate cheaper than renting it. So, with a loan amount of 150 thousand pounds, the interest rate will be 3%. The average mortgage lending term is 10 years, so the borrower will spend less than 1,500 pounds per month on serving a mortgage. While renting even a small apartment can cost almost 1,600 pounds. And this is not to mention the fact that the cost of the lease is constantly growing, and the percentage of mortgage lending is recorded in the contract. This situation has developed in connection with the policy of the government, which in this way stimulates the economy. Although the UK is not part of the eurozone, the regulator had to go to reduce interest rates, following the ECB. Well, by visiting the site you can rent an apartment for rent in Rostov without unnecessary costs. Moreover, the UK is not the lowest interest rate. So, in France you can take a mortgage loan for 10 years at a rate of 1.8%. However, if the loan is taken by 15 years, then the rate increases to 2.15% (and by 20 years – even up to 2.4%). However, we can say that the bets have reached a historical minimum. Low interest rates not only increase purchasing activity, but also activate speculators. After all, it is enough to get a loan at a rate of 2%, buy an apartment, rent it for several years, and then sell it with profit after 3-5 years, because real estate prices are rising. So, according to experts, already by 2019 in the capital of Great Britain, real estate may rise in price by 23%. However, this situation also carries potential risks. After all, before or later, the central bank will begin to increase the rate, and then the cost of loans will increase. So in such a situation, many owners will begin to urgently sell their property. And the fact that now the market is heated by low interest rates, can lead to very unpleasant consequences, since it is fraught with inflating the next bubble. However, this does not mean that the purchase of liquid assets should be postponed – just now there are all conditions for this.
