hey /biz/, I need some advice or opinions.
I am interested in buying apartment, but I am not sure whether the price is too low/high. There are no other identical apartments on sale in the area, so there is no way to compare. All I know is that the price, right after financial crisis, was at least 25-30% lower than current price and the ad is on for ~90 days (no one interested?). The price for m2 is relatively high and the RE taxes are higher 40-50% than in other districts, because the apartment is in a really good location, 10 mins. to the downtown.
I feel like it could be a good investment, because I could rent out the apartment easily and the price could go up in future. Do you have any hints what factors I should take into consideration? Anything would be useful.
>inb4 buying apartment
>>1224969
Crash incoming...
Where exactly are you in the world?
>>1225139
Denmark
>>1224970
deflationary or inflationary?
>>1225144
Don't know much about Denmark RE. Sorry
>>1224969
One of the ways to get a good idea of what it would rent for is to call a letting agent and ask them by pretending to be someone looking to rent. Don't call as someone who is trying to rent it out as an owner as they'll give you a optimistically high figure to get your business for themselves.
Also you don't need identical properties to guess at the price, just quite comparable ones.
>>1224969
Is zoopla a thing in your country?
Hey,
Denmark is part of the ecbs but not part of the euro system, so although you have your own currency your central bank is linked to the ecbs' monetary policy to maintain stable exchange rates between the crown and euro.
The ecb will pump more money into the system (90% sure) so asset prices will rise especially real estate because of its inflation hedging ability. But every real estate is unique so it still depends but economically its a good idea
>>1226827
Thanks.
>>1225186
This is the question that terrifies me. I have a boatload of cash, and i have no idea what to do.
>>1226827
really? do tell more
>>1227981
About?
>>1225186
Doesn't matter. Real estate is done either way.
The question is one of timing.
>>1225186
deflationary
interest rates in america will go up which will entice hoarding which means less liquidity in the food market which means lower prices.
>>1229031
Inflationary is certainly more likely though we might see crippling deflation first.
The real value of real estate can drop in either scenario, and it will.
>>1229034
my city has experienced 4% inflation while pretty much the rest of the country is stagnant or leaning on deflation.
