World-Estate: The Real Estate market crisis was caused by banks – it’s their job, though News.World-Estate.com
Plenty of Real Estate market experts name “weighted” credit system to be the main reason of market slowdown. Thus if this system would have been “weighted” before, we could have avoided the Real Estate market crisis.
Banks made us spend money we do not really have. The habit of spending money more than earned became popular in USA. Current crisis shows that this continent is the first to suffer from this habit. Bankers are even compared to pushers who simply seduced people.
The recent financial crisis which is to be called the greatest after the Great depression is the cause of the problems which has started a year ago. In August 2007 there were some troubles in the second-rate credit segment which was followed by the price of securities with the credit to fall. Because of this, many financial institutions in the world discarded more than 500 billion dollars of capital.
“World-Estate.com” supposes after such incidents already strong bank requirements are likely to become even more stern. The requirement for the initial contribution sum, interest rates and bank payments will change. Finally, the number of banks which issue house credits will drop. Banks admit to be scanning the projects to be financed and stiffening loan issues.
Everybody is familiar to the saying “Better late than never”, though this does not work with the change of banks’ point of view. If banks would have taken loan streams more strictly, there would have not been such upheaval. Current attempts to make strict changes whipped Real Estate agencies and caused the crisis.
In the beginning of 2008 the banks have stopped giving credits to Real Estate companies with this stopping the growth of new accommodation’s market sector. That was an attempt to protect their investments because if there are no new objects which could be build cheaper people would not want to sell their Real Estate to the bad. Give back the credit with compound interests and remain indebted to the bank.
“The other bank’s march in order to save their investments – the increase of margin. That means the ordinary people could not take the credit for accommodation because paying 10-14 percent annual compound interest is equivalent to financial suicide”, – states the “World-Estate.com” Real Estate portal project manager Simonas Rudaminas.
However, one can not blame the banks – businessmen also want to earn their millions. Everybody who is seduced by attractive bank offers might have assessed if dream house is earnable.
Many people in the West currently do not see the difference between the words “I want” and “I can”. “I want a house by the see, to fly to Hawaii and drink tequila”, – it even rhymes. Although while singing one often forgets to watch its salary and bank account balance. One can not blame the people round about for putting ones head in the noose.
Banks will buy the noose. On loan, certainly.
For more information please contact:
World-Estate.com project manager
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