Sea homes real estate / How to solve the housing issue in Croatia?E

Solving the housing issue in conditions when real estate prices continue to rise and wages are largely “eaten” by inflation becomes a nightmare. Young people do not voluntarily stay with their parents or choose subletting.
The reduced interest of young people in buying real estate is related to the price of square meters of housing, because the price of a square meter of housing is in the range of at least three average Croatian salaries.
When it comes to the coast, the situation is even less favorable than in Zagreb, because real estate prices are often higher, and foreigners, who are the main buyers, buy real estate in advance in cash.
In Dalmatia, there are almost no residential properties on offer that are suitable for a mortgage loan. The real estate must be completed, a use permit obtained and we know that real estate on the Adriatic is sold before the completion of construction and obtaining all the necessary ownership documentation, and if something is found, it is “left over” for some reason (too large, overestimated or inadequate real estate…). I meet regularly with young people who would like to solve their housing issue but do not have all the relevant information. For example, in the bank they get information about the maximum amount they can borrow considering the level of their income, but the bank will not immediately share the information that no real estate is financed 100% with a mortgage loan, but the bank sends its own appraiser who evaluates the real estate. Market price and appraised value of real estate are not the same thing and can differ by more than 25%. If you are thinking about buying land, you can take out a mortgage only after buying the land and obtaining a building permit. Since a large number of “older” properties still do not have completed ownership documentation or the Cadastre and Land Register entries are not harmonized, such properties are not “immediately” suitable for credit. Many Sellers are not willing to wait for a potential Buyer to be approved for a loan, especially during the selling season, because Sellers are sure that they can sell the property to a “cash buyer” in a shorter period of time and with fewer vicissitudes.

If you are not discouraged, here is what is needed to buy real estate with a loan?
It is necessary to be creditworthy, and creditworthiness is proven with the last 3 pay slips. As a rule, the loan installment amount must not exceed 1/3 of your regular income.
To find a property that meets the requirements of the banks, when looking for a property, three things are crucial: the state in the land register aligned with the Cadastral, the Title deed without any recording of encumbrances, the use permit.
Have a minimum of 25% of the real estate value in cash. No bank will finance the entire value of the property. As a rule, the bank finances about 80 to 90% of the appraised value, and keep in mind that the agreed sale price and the appraised value may differ.
The duration of the entire process of obtaining a housing loan depends on the amount requested, the agility of the real estate appraiser and of course the complexity of minor problems that arise during the process itself. In the best case, if all documents are ready and valid, the expected time from submission to loan approval is about 45 days. Even if it is paid off, be patient and persistent because real estate is not bought every day.
Plan all purchase and credit costs. When we deal with the purchase of real estate, we must not forget about additional costs. In addition to the price of the real estate, there are mediation costs, real estate sales tax, loan processing costs, real estate appraiser costs, and notary costs for solemnization of the sales contract. These costs are often overlooked, but they can have a significant impact on the budget. Proper planning allows you to focus on the quality of property selection and successfully close the transaction.
Acquiring your own real estate is a dream come true for many. It is important to make a good preparation, carefully analyze the conditions, choose the right property and take the necessary steps in a timely manner. Through it all, informed decisions ensure that the buying process is a smooth experience and that the longtime dream of owning your own home comes true.

Contact us

Sea homes d.o.o.
Croatian real estate agency
Office; Ante Starčevića 33 A, Makarska
Phone; +385 21 615 670
Fax; +385 21 615 671
Mobile; +385 912017124 (Vesna)
Mobile; +385 915948484 (Bojan)
e-mail; [email protected]
e-mail; [email protected]

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Croatian properties for sale by Sea Homes Makarska!

If you dream of buying an apartment or villa by the Mediterranean – and perhaps never really thought that this was possible to carry out – we have good news. Along the Adriatic coast in Croatia, there are many genuine fishing villages where it is possible to experience the Mediterranean as it once was. Here you can find apartments and villas, with panoramic views to the sea and walking distance to the beach at a price that makes it a real possibility.
Your dream of an apartment or villa along the Mediterranean may be closer than you think…
Croatia offers many opportunities if you are considering buying apartment or villa, especially Makarska Riviera is an exciting place for property investments.
We wish you welcome to Sea Homes office in Makarska in Croatia.