Buy-back purchase provides a new alternative for the real estate market
During the Sphera Housing Estate Fair, held between 12 and 15th of April 2007, the real estate developers aggressively promoted a new method of buying a property known as Buy-Back. The alternative is trying to accommodate the current Romanian estate market: a buyer pays a deposit and provides his/her existing apartment as a final payment in exchange for a new bigger apartment. There might be still some instalments to be paid, but most of the financial burden is taken by the deposit and the old apartment. In UK, this system doesn’t exist on the property market, but you might be familiar with the system on the car market.
Why this alternative? Firstly, because of the booming housing market, as second-/third-time buyers might be significantly delayed while prices keep increasing. Secondly, due to the rising competition in the real estate market, many developers feel the need to improve and find new financial offers for interested buyers. Although the bank loan (mortgage) will remain the preferred option, it is envisaged that this new system buy-back will attract a large number of buyers.
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Posted: May 12th, 2007 under Law & finance, Reviews.
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