Tuesday 9 October 2007

Real Estate Market Cools Down


Real Estate Market Cools Down

Longer waiting periods for selling a flat are making both buyers and sellers of real estate more cautious.

The Mortgage Society of Finland is warning people of the risk of becoming trapped between two homes. The Mortgage Society is advising prospective buyers to sell their old apartments before attempting to buy new ones.

"It seems wise to sell off old property before investing large sums of money," says Mika Tulimaa, who followed a piece of old-fashioned advice and rented a flat while waiting for his old home to be sold.

Meanwhile, in the city of Oulu, cancellations on new building sites are up by fifty percent. The most common reason for this is that people have not been able to sell their old homes.

Agents draw attention to the importance of the price-quality ratio. If a flat is in good condition and the price is reasonable, a buyer can turn up very quickly. Overpriced apartments will naturally stay on the market the longest. However, the biggest obstacles to sales are costly building renovations.

To avoid the emotional and financial stress associated with being overburdened with debt, the Mortgage Society of Finland is urging buyers to be careful not to take on more than they can handle.

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