Real estate purchase – with or without a loan?



The most popular real estate service in our country, based on research  published a report on preferences and satisfaction with buying an apartment on the primary market. A group of 513 adult residents of new housing estates / investments that were created in the last 2 years in the five largest cities in Poland: Warsaw, Krakow, Tri-City, Wrocław and Poznań were asked.

What do we already know from the report?

What do we already know from the report?

From the report, we learned that the respondents most often chose 3-room flats, with areas from 61 to 80 m2 most popular. People looking for new flats eagerly looked at developers and real estate websites, and visited real estate domains. As for the criteria suggested by the respondents when buying real estate, the price came first (66% of indications), and the second and third location and area of ​​the apartment (45% of indications each). When choosing a location, the presence of green areas was most important, as well as communication, both by car and public transportation.

The pros and cons of new and used houses / flats.

The respondents among the biggest advantages of real estate from the primary market included the fact that everything is new (40% of indications), and the building itself does not require renovation (37%) and that you can decide on the interior design (32%).

Among the disadvantages, most people chose the additional costs of finishing and equipment (37 percent), longer waiting time for the property and the inability to enter immediately after purchase (35 percent indications each). When it comes to used flats, the biggest advantages were: transaction speed (39%), price negotiation (37%) and finding property at a favorable price (36%). The disadvantages were primarily outdated construction technology and poor technical condition of buildings (43% of indications each), as well as the need for renovation (42% of responses).

Before buying a new apartment / house, respondents most often checked the credibility of the developer by searching for information on the Internet (70 percent). 26 percent of respondents consulted friends and family before buying a flat, and 29 percent visited the sites of the developer’s previous investments.

Purchase financing

Purchase financing

The last questions in the Maliu website report concerned the methods of financing the purchase of real estate by respondents. In this case, there was no surprise, because as much as 81 percent of respondents supported with a mortgage, and only 19 percent. made full use of its own resources.

The share of own contribution in the total cost of real estate is interesting. Most, as many as 32 percent of respondents, declared having over 30 percent. own funds. In second place (apart from people who refused to answer) are people with contributions from 21 to 30 percent. the total cost of the property (23 percent of responses), and 17 percent of survey participants had funds ranging from 11 to 20 percent own contribution. Compared to the data for 2014 and 2015, the number of people with a contribution of over 30 percent of the property value has gradually increased. The number of people without any funds dropped to zero, which is caused by the recommendation of S. developed by the Polish Financial Supervision Authority.

Looking at individual cities, it can be seen that the inhabitants of Warsaw more often declared that their own contribution to the total cost of buying real estate was over 30 percent. – As much as 42 percent of the capital’s residents declared that they had over 30 percent of the value of the loan property. In turn, people up to 29 years of age, especially those living in Kraków and Wrocław more often declared the share of own contribution at the level of 1-10 percent from the Maliu website.