Real estate under attack
Coming to terms with what's going on in the world is for many people a long process; for some the war in the Middle East will finally be the event that makes everything click in their mind. The old and the new global realities are hurtling toward each other the way interceptors track incoming missiles; most of the missiles get knocked down, but those that don't wreak havoc. For investors into Czech real estate who decide that it's time to act, the window of opportunity could be closing. Real estate is one of the areas most at risk of collateral damage, and not just because of spiking interest rates. Under attack is the very concept of buying on debt at inflated prices and expecting rising demand and limited supply to make it a profitable transaction in the long run. If the market turns, many people will find themselves underwater with their mortgage, with the outstanding principal exceeding the market value of the property. Taking a small loss now to avoid such a situation later might be a wise investment decision.
Glossary of difficult words
to come to terms with - to come to accept (a new and painful or difficult event or situation); to reconcile oneself to;
to click - to become suddenly clear or understandable;
to hurtle - to move or cause to move at high speed, typically in an uncontrolled manner;
intercepter - a fast aircraft or projectile for stopping or repelling hostile aircraft or missiles;
to wreak havoc - to cause confusion, lack of order and damage;
collateral damage - incidental and undesired death, injury or other damage;
to spike - to reach a peak.