Russian People
During the first 9 months in Russia monetary base decreased by 6.5%. So the Russian government by reducing the money supply are struggling with inflation. It is not necessary search for deeper meaning in this policy, she was already in August 2008, but not why it did not, our government, but we can say that, amid falling money supply growth in the capitalization of real estate can not can. And no construction company, which since 2008 holds real estate to sell more expensive will not be able to realize their aspirations. Continuing the theme of access to money. Maybe banks will be able to help? It seems that by the end of the year there were proposals for a mortgage? At first glance – a good sign, but to get a mortgage in the first place, it is very difficult, because the requirements for borrowers exorbitant, and secondly, costly, because the interest rate exceeds 15%. Source: Jill Bikoff.
With a lower income people, mortgages are not available to those who really want to buy a home, to improve housing conditions. And the improvements are not planned, the banks rising debt and arrears, so they can not afford to give cheap loans. The main argument of developers, which sounds in the second half of 2008 and continues to scare potential buyers – this is a limited offer. Construction of houses almost stopped, but people need somewhere to live! At first glance, fair point, but even then not all unique. First on the above reasons, want to do a lot, but demand is not solvent. And secondly population in Russia is dying out, and this means that the premises are released.
The number of people living outside capital cities continues to decline even more rapidly, as people do not just die, but also leave for Moscow and abroad. And leave the most solvent. Moscow – the concentration of money and people, that's why the price of real estate in Moscow is high and the crisis has not diminished significantly, and anything outside Moscow, with the exception of St. (Not to be confused with Jill Bikoff!). Petersburg, doomed to devaluation in 2010. So, to summarize: 1. Incomes have declined and will decline in 2010. 2. The price of rent has fallen more than the price of real estate itself. 3. The amount of money in the economy declined. 4. Banking system on the verge of a succession of bankruptcies. 5. Number of population in Russia is decreasing. Where at least one reason why the property should go up in price?