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Inflation, prices, interest rates are rising… Isn’t it time to buy a house? What the experts say



Inflation, prices, interest rates are rising... Isn't it time to buy a house?  What the experts say

Loss of purchasing power, tightening credit restrictions, an increase in the Euribor rate and a possible change in bank spreads… The real estate market may slow down, but industry experts say that house prices are unlikely to fall to a level worth waiting for

No turning back: Euribor rates, which serve as a benchmark for home loans, will achieve a positive result across all timelines later this year. Six years later 12-month index stopped being negative in April. The same should happen in June with the 6-month Euribor most commonly used in mortgage contracts in Portugal. Ah, there for October, in a three-month period.

The market outlook is that in a year, in May 2023, the 1.5% barrier will already be exceeded for at least two maturities of these base rates. Investors estimate that the 12-month Euribor is 1.75% at the time and 1.54% for 6 months. But the growth does not stop there: until the end of next year, the indicator should continue to grow.

“As of November 2023, the market expects rates to stabilize,” explains IMF analyst Filipe Garcia – Financial Markets Update. So anyone who wants to buy a house or already has an adjustable rate mortgage should expect an increase in the interest rate at each of their installment revisions.

Attention, Euribor may not be the only one

There’s a price at which pundits heard by CNN Portugal aren’t as unanimous in expecting growth: “spread.” That is, the cost charged by the bank for lending money. Will it increase in new contracts?

“This does not seem like a predictable scenario to me. We would have to face great financial difficulties from the banks,” explains Filipe Garcia. But if it grows, it could put even more pressure on families who want to take out a home loan.

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Banks tend to apply a spread of around 1.5% on average, says Fiipe Garcia. Which, taking into account the negative Euribor of recent years, forced families to pay interest of about 1% at the end of last year. Thus, for a loan capital of 100 thousand euros, the annual amount of interest will be one thousand euros. In May next year, if the spread continues, the cost of interest will be about 3250 euros per year (taking into account the positive Euribor and 1.75%, explains Filipe Garcia). However, the analyst says he expects growth in 2023 to be less intense than the market is predicting today.

Nuno Rico, an economist at Deco Proteste, acknowledges that the spread weight on new contracts could rise “in the face of deteriorating economic conditions” as banks find a way to mitigate risk as much as possible.

Buying a home now faces additional uncertainty (Getty Images)

Now or when?

As the 12-month Euribor approaches 2% by the end of 2023, the question is: “now or never” for those who are already planning to buy a house? The final decision is always yours, but given the signals that the market is giving, there are experts who point in that direction.

“The days of cheap credit may be numbered,” says Nuno Rico. And Pedro Lino, economist and administrator at DIF Broker and Optimize Investment, is inclined to agree: “For those who were already planning to buy a house next year, we are reaching the limit.”

Because the market is returning to what it has always been. After years of abnormally low (even negative) rates, which sharply spurred demand for credit, inflation dynamics were already pushing for a trend reversal, and the war in Ukraine only strengthened it.

Will there be an increase in Euribor that will again put families in a difficult position? History comes into play here, with reference to Euribor rates of 5% during the last financial crisis in 2008. “Then the consequences will be devastating for families,” Nuno Rico describes.

Hope for a market correction

With families losing purchasing power and borrowing costs rising, there may still be a horizon of hope for those looking to buy a home: the expectation that as restrictions tighten and the real estate market weakens, prices may fall.

But experts interviewed by CNN Portugal warn that for this reason it is better not to delay the purchase decision, not least because the supply remains limited by the country’s needs.

“We shouldn’t expect house prices to go down,” says Ricardo Guimarães, director of Confidencial Imobiliário. At best, he says, this new reality will create demand for other types of offerings. And Filipe Garcia reinforces: “I would venture to say that prices are falling hard with great difficulty. I believe there will be fewer transactions.”

“More than 80% of Portuguese families buy houses on credit. If credit is relatively more expensive and scarce, then naturally most of the demand tends to have more trouble buying,” admits Gonzalo Nascimento Rodriguez, real estate finance consultant.

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Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners



Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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The first Dacia hybrid. “The cheapest hybrid family on the market”



The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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See how Tesla tests its electric Semi truck in the worst-case scenarios



Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.

Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

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high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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