4 Reasons to Buy a Home Yet This Year

Autumn has brought a moderate boost to the real estate market. Several new real estate developments have come to the market, and many families are tired of postponing home exchanges. If the desire to buy a home has been ripening for a while and the decision has been made, it's worth doing it before the end of this year. Why – more details right away.

1. VAT increase

From January 1, 2024, VAT will increase by 2%. The tax increase also applies to new apartments, which means that the prices of many new developments will rise by 2% from the new year. For an apartment costing 300,000 euros, the price increase would be 6,000 euros. This is comparable to a smaller kitchen or the entire budget spent on appliances. Many developers offer the option that if you buy an apartment today (or even just reserve it), the developer will bear the additional VAT. This option is worth taking advantage of boldly, because a 2% gain on an apartment is a significant saving.

2. Good loan terms

Several major banks have extended favorable loan terms for A-energy class new developments until the end of the year. Some new developments also have special agreements with banks where using a password allows you to get contract fees at a better rate or the fee is waived entirely. I recommend boldly asking sales managers about special terms.

3. Expanded selection

The choice of new homes is significantly better today than, for example, a year ago. Several beautiful new developments have come to the market in Tallinn, in small towns bordering the capital, and elsewhere in Estonia. By joining the project early, you can choose interior finishing materials to your liking and work together with the developer in building your dream home.

Many major developments in Tallinn and the surrounding area will be completed in spring or early summer. By booking today, there will be plenty of time to deal with selling the old apartment and other necessary matters.

4. Increased flexibility

Both banks and developers are in a flexible mood as the year approaches its end. For example, banks are willing to give young people a home loan together with a parent, increasing the likelihood that the appropriate loan amount will be arranged. Developers, in turn, are willing to increase or decrease the down payment amount or be more flexible in the selection and combination of interior finishing packages. Various options are worth discussing boldly with both the bank and the real estate developer; often they become apparent during the conversation and are not explicitly listed on websites.

Article author: Maia Lõško, Sales Project Manager at Scandium Kinnisvara AS