I'm thinking about buying an apartment in Lisbon, but the prices are way too high. I have savings for the down payment, but I don't know if I should go ahead now or wait a few more years. How do you guys make that decision?
This really depends on your personal context - how much do you earn, do you have a stable work contract, are you planning to stay in Lisbon for the next 5-10 years? Because if the goal is pure investment, prices in Lisbon have been in a bubble for a few years now, but if it's to live there, timing matters less than having financial comfort to pay the mortgage without stress. I'd personally say it's better to wait a year or two if you think it'll really stress you out, but you're right that the longer you wait, inflation keeps going up too (and then rents explode). What's your actual time horizon here?
That's pretty personal and really depends on your situation. If you have savings for a down payment and interest rates are under control, I'd say buying now could make sense because prices in Lisbon don't usually drop much - they're more likely to keep going up. Of course if you're not in a hurry or you're worried about the mortgage, you can wait a bit longer, but don't count on prices dropping drastically.
I bought my house a few years ago and I don't regret it, but I'm gonna be honest - Lisbon right now is insane! If you've got a down payment saved up and a stable job, I'd go for it because rent is just money down the drain and mortgages give you peace of mind, but if you've got doubts about your job or you're planning to leave Lisbon in a few years, better wait a bit longer! The thing isn't really the price itself, it's whether you can live comfortably with that monthly payment for 20-30 years without getting too strapped.
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