Croats are the third largest property owners in Europe, more than us only Romanians and Lithuanians. Almost 92 percent of the citizens of Lijepa Nasa own a house or an apartment. It’s an excellent average, especially when looking at a much richer country like Norway or Germany, where only half of its citizens have their own home. Maintenance of real estate is extremely expensive, especially when it is already known that the average salary in Croatia is about five and a half thousand kuna, which is not enough for basic needs. papierkugel.org has details
With this in mind, financial institutions have launched specially designed adaptation loans on the market. This is a special type of loan intended exclusively for the interior or exterior of the apartment or house. Adaptation loans are a subset of home loans, characterized by a larger amount and a longer repayment period, which are repaid in monthly installments.
They are issued in kuna and foreign currency, and the maximum repayment period for loans is usually less than 30 years. Although it may seem like a very long period, the fact is that sometimes reconstructing and renovating an example of an old property can be more expensive than buying a new building.
In addition to the home improvement, they are also used for the reconstruction of the building and its completion, as well as for improving the energy efficiency of the property. The number of citizens taking loans for renovation to increase the energy efficiency of real estate is increasing, as an energy certificate is necessary for the sale of real estate.
Since these are larger amounts, banks are obliged to check the creditworthiness of clients. Creditworthiness refers to the fact that the unpaid portion of the applicant’s salary is at least two thirds of the average salary. Many clients do not have this, so they are forced to resort to security instruments in the form of guarantors, mortgages and promissory notes. In this way, banks are covered against possible losses in the event that the customer can no longer repay the loans for adaptation.
Credit houses have a different policy than banks. They do not check the creditworthiness of clients, but they do check the financial order. It is important that the client has a regular income and regularly settles his debts. It doesn’t even matter if the client is a part-time or full-time employee, which is something that banks take into account, especially with larger amounts.
The advantage of this way of borrowing money is that it goes online without needlessly going to the office. The documentation required for the loan is minimal and the money is paid off as soon as possible. More specifically, within 24 hours of filing. The amounts are smaller, but customers can quickly repay them and re-take them as needed. Money is turning fast, which is essential in this hectic lifestyle.
A special part of the loan for renovation relates to the arrangement of rental properties. Much of the Adriatic coast has been privatized and it can be said that Croatia is increasingly turning to tourism as a major branch of the economy. There are an estimated half a million beds to rent.
It is not surprising, therefore, that the interest in adaptation loans has increased. Everyone wants to take some of the cakes, and those who already own apartments or holiday homes are trying to modernize them, thus attracting additional tourists but also retaining existing ones.