House price is soaring, but finance advisor telling me to debt maxxing on house loan 90% loan and 0~10% dp, and its fine.
This is all wrong here.
House prices are not soaring, it is exactly the opposite. Interest rates are high , less people can afford a loan because it is expensive now. So less people buy houses , less demand = lower price.
Anyone should be careful about making debts now as interest rates are rising all over the world.
That might be happening in Brazil (?, did I get it right?) but not in Europe.
The ECB is threatening us with lower housing prices because of interest rates, of slowing demand of that and this and prices have just jumped another 5% you here, and even worse in some other parts of Europe.
https://finbold.com/eu-rent-and-real-estate-prices-see-steady-increase-in-q2-2022-despite-looming-crisis/Doing the average for a country is not showing that much growth but if you start looking only at capital cities the whole covid scare is over and people are again buying, slowly as there isn't that much to buy in the first place but they're going up, up and up. Plus, nobody will sell cheap apartments that were completed now with more expensive materials, they will just wait for a buyer, and with almost every larger city still attracting students and workers, they will find a customer at one point.
I opened a week ago a classified website to just check on the madness and saw a two-bedroom 50sqm flat in the same neighborhood at the same price as my old mortgage on my 3-room flat taken years ago, and when I thought things can't be that bad I stumbled upon a 7000E/mp in the city center and instantly closed the page as I realized the whole cheap houses stuff is just a dream.
Experience has shown that people don't buy houses to live there but they do that as investment for the future. They acquire it and put it on rent or lease it out and on the long run it will become something to rely on for financial support.
And where are they living while they rent the house they have bought? They rent another place?
I have not seen even once such a thing, I don't know a single guy who would rent his property while living in a rented apartment from somebody else.
Temporarily due to work maybe, possible, but never in the long run.