Published by carratelli4 years ago

This Coronavirus period, which we have just overcome and are still experiencing, has brought about drastic changes in every sector of human life, including the economy and finance...

This Coronavirus period that we have just overcome and that we are still experiencing has caused drastic changes in every sector of human life, including those of the economy and finance, with important implications also in terms of the provision of liquidity to banks by central bodies; therefore, discover with us the important implications on access to a mortgage to buy a house or renovate your home.

 

Among the measures adopted by the European Central Bank to contain the economic contraction caused by the impact of Covid-19, and also in response to it with a view to expansion, is the virtually zero cost of borrowing, making it possible to access mortgages with interest rates close to zero. Furthermore, the increased liquidity made available to banks, which leads to greater lending capacity, has been compounded by a significant contraction in the real estate market. During a period of restricted mobility, which has led to a sharp decline in demand for short-term rentals, real estate prices have halted the upward trend that had characterized recent years. 

 

Low property prices and near-zero mortgage rates, an unpredictable combination that makes for an exceptional time to buy property. This is therefore an opportunity not to be missed: investing in a home represents, currently, one of the best ways to invest your savings, with returns that could prove truly impressive in the coming years.

 

Home loans: which one to choose?

Having established the convenience of taking out a mortgage in this period, it is natural to ask a question regarding what type of home loan It's best to choose a fixed-rate or variable-rate loan. Obviously, the intertwined factors are complex and heterogeneous, and depend largely on individual circumstances.

Variable rate mortgagesCurrently, a variable-rate mortgage is a valid and acceptable option, costing approximately half as much as a fixed-rate mortgage. However, it's difficult to predict whether this convenience will remain in the future. If you decide to opt for this solution, it's essential to protect yourself from a potential interest rate hike and therefore maintain financial security even in the event of a potential increase in your payment.

Fixed rate mortgages: At this time, choosing a fixed-rate mortgage means choosing financial security over short-term savings, as well as protecting yourself from potential fluctuations and price increases associated with variable-rate mortgages. In the short-term, this choice could also pay off, placing you in a financially advantageous position at a time when variable-rate mortgages are offering high interest rates.

Another option that could prove extremely convenient at this particular time is to replace a mortgage taken out in years when interest rates were significantly higher.

 

Renovation bonus

The Relaunch Decree approved by the Senate has now become law, and with it the very strong incentive known as the 110% Ecobonus. This is a tax deduction, which can also be used to terminate credit for the company carrying out the work, applicable to certain specific types of work. Likewise, the 50% tax relief (personal income tax deduction) on home renovation work (property designated for residential use) has been confirmed.

Contact us and discover all the benefits you can gain from this period characterized by low mortgage interest rates.

Carratelli

Get the latest news

To get to know our properties for sale and rent in advance and to be always up to date on the wide range of services offered by our real estate agency, subscribe to the newsletter.