Low mortgage rates and low construction costs strengths to build now

The financial situation is particularly beneficial to build.Mortgage interest rates late in 2011 was a mere 3.8 point.But the Flemish Building Confederation (VCB) expects that will soon rise again. Construction costs have fallen sharply during the crisis of 2009 are still lower than before the crisis.But also threatens soon to rise again. Yet these positive elements penetrated sufficiently to most prospective builders.A recent survey by the VCB at the contractors active in housing, found that 43% in the coming months, expect a decrease in the number of new apartments contracts 52% decrease for the construction of new houses. Families, however, are wrong now to hesitate in implementing their plans.

Never was the number of permits for new housing (flats and houses together) in Flanders as low as in 2011. In 2010 led to lower VAT on the first tranche of 50,000 euros for a boost to jobs. The numerous applications submitted by the end of March 2010, provided a buffer commands until early 2011 yielded work. But this buffer is now almost deflated and was subsequently replenished insufficient. Especially during the last months of 2010 but remained very low during the first eight months of 2011, the number of permits for new homes in Flanders. From January to August 2011 were only about 19,000 new housing units authorized in Flanders.

August 2011, the latest month for which government statistics released on the number of licensed dwellings. For the remainder of the construction activity, we have to rely on surveys.

Results December`

The survey by the VCB in December has decreased in the Flemish home builders, it appears that the majority of construction activity at that time was still as high as three months ago. The majority responded to the question about the current activity that remained constant. This does not mean that a significant minority (31% of the apartment building and 27% for house) construction activity already saw a decline.

More disturbing was the evolution of the number of contracts had the house builders in December in portfolio. At that point, there were more negative responses. 35% of respondents had in December been fewer contracts for flats and 48% had fewer contracts for homes in its portfolio than three months previously.

Were even more negative answers to the question to the house builders or she more or less expected contracts for the next three months. For the apartment building, the number of negative expectations and 43% for house expected a majority of 52% in the coming months a further decrease in the number of contracts.

decide quickly pays off

Marc Dillen, Director General of the VCB: "With all the negative economic news of recent months, households may now who want to build, not lose sight that the mortgage rate is currently very low. It is now a particularly favorable time to build. But we do expect an increase in mortgage interest rates within a few months. Mortgage interest rates traditionally follows the evolution of the long-term, which has risen sharply again in November and continued in December still on average 4.6, thus higher than the mortgage rate.

The relatively low construction costs would be the principals should encourage construction. The evolution of the costs for the construction of buildings and private homes is output from the Abex index that is updated every six months. according to the latest update of November 2011 that construction costs have risen by only 6% compared to November 2007 while inflation has increased by 10.5% over the same period. Especially in 2009, the construction costs have fallen significantly due to falling raw material and energy prices. The Abex index, the consumer price index since not overtaken again. Construction remains cheaper than five years ago. But in the relatively short term, the construction costs because of the re-rising energy prices and increasingly stringent building requirements will inevitably increase again.

Ready on time with public

In recent months we have a number of significant federal tax incentives in favor of the construction disappear. The low mortgage rates and low construction cost housing can still provide some relief. But once going to rise again, the Flemish government must be ready with an alternative to the loss of federal aid. Otherwise threatens a very large number of families build to be priceless. At that time, the number of permits for new housing is likely continue to crumble.

More than once construction is the trigger of our economy. In addition to mortgage interest rates and construction costs plays the government support an important role. By building sustainable homes again to support fully the Flemish government can play an important role in ensuring that Flanders does not enter a recession. "

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