Mortgages hard to get for young people in Cyprus
Young people in Cyprus are facing difficulties in securing mortgage loans due to a number of factors, according to Cypriot economist Tassos Yiasemidis.
Speaking on Sport FM radio on Friday, Yiasemidis outlined the three main factors that are influencing the issue. Firstly, there has been a large increase in real estate prices due to external demand and rising construction costs. However, there may be a decongestion early next year.
Secondly, with the growth in interest rates, installment payments have also increased, making it harder for many to afford.
Finally, many cannot afford the installments because their incomes are not sufficient to meet the repayment plans drawn up by the banking institutions.
To address this issue, Yiasemidis suggests two solutions. The first is for the state to implement housing programs and assume responsibility for a certain amount of the loan so that banks can provide lending to young people. The second is to implement measures to decongest the increase in real estate prices.
He also warned that a slowdown is coming to the Cypriot economy due to the cycles of interest rate increases that will close at the end of the year.
