30 october 2008 | Ziarul Financiar, 30.10.2008

Ziarul Financiar, 30.10.2008: "What housing can be purchased in Bucharest with 100,000 euros?

The budget of 100,000 euros for the acquisition of housing in Bucharest did not offer many options right now, namely: a suite of two rooms of 50-60 square meters in an old building or one of 45-55 meters square in a whole new residential, according to property consultants on the prices on the sqm.

Of course, these are some environments. You can buy with this money not even a studio in a good area of Baneasa or Dorobanti, while the old housing segment could even hope to an apartment with three rooms in an area such as Berceni or Pantelimon, depending on the surfaces and endowments, shows an analysis based on information gathered in the third edition of the catalog of residential conducted by the Business Magazine.

In terms of housing new potential buyers with a budget of 100,000 euros if irealisti not propose an apartment with two rooms, but they are constructed, usually at the extremities of the city, in areas with more difficult access to the means of transport in common or even in villages around Bucharest.

A brief on the supply of new housing on the local market show that most assemblies with relatively low prices are built by local companies with shareholders who have benefited and bought lots of time at prices lower than what is on the market today vehiculeaza , Who made the contribution that land costs are lower. Thus, the apartments at prices ranging from 1.000-1.200 euro / sqm built can be found in ensembles such as Comfort City, developed by Domus Stil, sunrise (Conarg) or Spring Road Camp (can serve), companies controlled by the people Romanian business.

Taking into account this information and current interest rates on the banking market, a couple must win monthly over 1,500 euros in order to allow such a house, taking into account a loan of 75,000 euros over a period of 20 years (assume that owns an advance of 25,000 euros), to a degree of indebtedness of 60%.

Basically, a couple in which both members earn 60% above the average wage in the Capital and could now an apartment with two rooms in the city, for which for 20 years to give up more than 60% of revenues current.

Criterion housing affordability is more often mentioned by a number of consultants, which comes somewhat in contrast to the costs, which rose steadily until this year.

In other words, sellers of land, and construction companies should take into account costs that result from that market prices, and the end user, you can sustain.

To the extent that wages will continue to grow in the next period despite the international financial crisis that will leave the lowest investment, but also the costs of some multinational companies on the local market, the housing of 100,000 euro could become accessible to a higher categories, namely a fair price for the class average."