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Price stagnation risk with expensive credit
Buying an apartment with a 17%+ mortgage is only justified if housing prices grow by 20-30% per year. If the market stagnates, you are trapped: the asset value does not rise, but the interest on the loan continues to eat your income.
You will overpay the bank an amount equal to the price of another apartment over 10 years. It is mathematically impossible to compensate for this through simple price growth in a market with limited demand.
Do not believe in the "eternal growth" of concrete; believe in the time value of money.
#realestate #economics #credit
