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Every 2nd Luxury Property in Bulgaria Purchased On Mortgage Loan

Business » FINANCE | June 27, 2014, Friday // 12:34| Views: 949 | Comments: 1
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Bulgaria: Every 2nd Luxury Property in Bulgaria Purchased On Mortgage Loan File photo.

In recent months, 40% of all luxury real estate transactions in Bulgaria were funded with mortgage loans, according to the experts.

The share of the expensive apartments and houses purchased on credit is 10 times lower. Generally, mortgages amount to EUR 30,000 - EUR 35,000, Bulgarian financial website Econ.bg informs. Most often, the amount of the mortgage is between 60% and 80% of the property price.

Mortgage loans are most often used by young people aged between 25 to 35 years. Two-room apartments are more popular in the big cities, while people in small towns prefer three-room property.

In May, the most popular real estate loan amount was between EUR 10,000 and EUR 30,000. The second most preferred amount was between EUR 30,000 and EUR 50,000. The mortgage loans for over EUR 90,000 are only 4%, and those for up to EUR 10,000 amount to 3.1% of all loans.

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#1
madoods - 28 Jun 2014 // 15:55:13

If these mortgages cannot be repaid, then they will bring down the banks here. I hope therefore, that loans have not been given to people who cannot repay them

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