House in Covid times
Look, we never even thought about it ... that one day we would have to spend 24 hours, even many 24 hours at home, within the 4 walls of what turns out to be the most expensive nest in the true sense of the word. word ...!
COVID 19 has become the headline of the day which passes very slowly inside the walls of the house… excuse me the warm, safe, loving shelter like never before. These days, more than ever there is no place like home. Within it time stops, sensations flutter in the air as thoughts move at the speed of light, between memories of the past and the uncertainty of the present….
One of the concerns that come to our mind in these difficult times, as full or part owners of our homes (this is due to the loans we continue to pay), but also as operators in the property brokerage sector is what the value will be. to have our property when everything is over.
Expectations are negative. In countries like the US, the UK is now talking about a sharp drop in prices for commercial or residential properties. In the US, commercial property prices are expected to fall by 24%, while residential properties by almost 35%. According to experts and analysts, this decline is caused by two main factors: the inability to move, ie the inability to effectively visit a property from both agents and potential buyers, and second and most importantly, the economic uncertainty about the future.
In Albania it is difficult to make such forecasts. Informality, lack of stock and financial securities are at least 2 of the reasons why we cannot say what our destiny will be in this regard. Albania is a country that has often turned to the exclusion of many economic rules that affect the markets of many other countries. In 2008-2009, when the financial and real estate crisis hit the US and other highly developed European countries, everyone's expectation was that property purchase prices would fall in Albania as well. It never happened! Prices went up year after year and sales increased as well.
This time I think it all depends on the time factor.
How long will this condition last? How long will we stay locked in our homes, producing nothing? How long will our reserves or savings last if we have them?
This is the question that afflicts all of us in these passing days with anxiety and uncertainty. We are a poor country with low incomes and this is certainly reflected in the financial situation of Albanian families or our businesses. If this situation exceeds the 3 months each of us anticipates, listening to the news and trying to read through the lines, the domino effect of the crisis will be inevitable. Many will lose their jobs or close the businesses on which their income is based, as a result of losing their solvency, losing their properties bought on credit or not. Chances are prices will fall from quick sales to get out of difficult and unforeseen situations. Unfortunately, accurate financial analysis remains impossible. One thing is for sure: we need to prepare for everything, plan our financial moves carefully, and seek the help of experts. Contact your bank loan officer! Contact your trusted real estate agent! We are all ready to continue to serve you. Try to understand in a timely manner what is happening and educate yourself by talking to those who know more than you and being up to date with any changes or developments. We are living life day by day, in the complete inability to make long-term plans. But that should not stop us from taking care of the health of our household as well. Life must go on inside the walls of our expensive home too!