Page 8 - Best Magazine Winter 2017

ECONOMÍA Y FINANZAS
A POSITIVE CHANGE OF DIRECTION
THE INTERVENTION OF THE GOVERNMENT SLOWED DOWN THE 2017 REAL ESTATE MARKET
Iam one to believe that the market needed to be cooled down. I did not exactly think that is was going to adjust, but I did believe that it
could not continue to grow at the rate in which it was in 2015, 2016 and the beginning of 2017. The government had a conflicting situation, in which, intervening could lead to an economic crisis, and I believe that is what made them delay the decision to intervene.
The house values are extremely high, making it complicated to meet the budget of first time buyers due to the house prices being over $600,000. This is characterized largely by the condominium market. In fact, these options present very little availability
of houses with three bedrooms, which clearly establishes how builders develop these projects for individual people, or young couples without children, but not for families with children. This is where we need a change in what is being developed.
It is true that the government created uncertainty within the market with the 16 rules and the demanding policies in the mortgage financing conditions. So, the question is, why wait so long? It is proven once more that the rumour makes banks go bankrupt.
My perspective for 2018 is that we will have a more balanced market, although the inventory problems may not have
changed, the availability has increased because of the decrease in demand due to the making of a more difficult buying process. In fact, I presume this will seem to smoothen out by spring.
On the other hand, it is very important to buy a house as a living solution and as a long-term investment. From the perspective of a medium/long term opportunity, the risk is low, and the building of patrimony is very real. First time buyers / Millennials must understand and search for professional advice in a new market. The mortgage financing conditions have changed, the requirements are stricter and the need to have professional support in both real estate finances is very important. Having good advice and support will largely influence the success of a sale or a buy of real estate.
The new conditions based on very demanding financial tests, “stress test”, creates the need to be advised by professionals to be adequately presented to the market and to maximize opportunities. It is the beginning of the season for first time buyers, and the application for the first-time buyers program requires the synchronization of professionals in three areas, REALTORS®, mortgage brokers, and financial advisers. The help of a good REALTOR® in the implementation of this program is extremely important.
Let us help you!
BY FRANCISCO GARZÓN
8 THE BEST MAGAZINE WINTER 2017 - 2018
ECONOMY AND FINANCE
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