By the way, during his more than 30 years of activity, all rationally purchased homesteads preserved their value and were not sold cheaper than they were bought.
The value of recreational property rose 3.5 times
“It’s hard to understand why people “destroy” their money… According to the Bank of Lithuania, at the end of August, residents of Lithuania kept a total of 23.6 billion in credit institutions. euro deposits. “Think about how their value decreases only because of inflation and the 1.5-fold increase in the prices of recreational real estate in the last five years, and what a person could have bought for the same thousands that were destroyed in the bank a few years ago and today,” emphasizes the real estate expert.
According to official statistics, a particularly large price jump occurred in 2021 and 2022, when annual inflation was 10.6 and 21.7 percent, respectively.
“We can rely on other numbers as well. For example, in 2014 (before the introduction of the euro in Lithuania in January 2015), and now homesteads purchased for recreation and leisure cost the same thousands in numerical terms, but let’s remember that one euro was exchanged for 3.4528 litas, that is, the value of the property increased by about 3.5 times during the decade – the price has “gone up”, – a real estate dealer suggests using simple mathematics.
What determines the price of a holiday home
Analyzing different objects purchased for recreation, he points out that over the past year, prices have risen more in some places and less in others.
“Those looking for peace and relaxation began to find homesteads in the forests of Aukštaitija more often – their demand and price increased especially, while the price near the lakes changed less, about twice. It can be said that for a long time homesteads in the forests were worthless, and now a homestead with a stray cabin alone can cost 50,000. euros, – says A. Bogusevičius. – By the way, just as, for example, in Vilnius you will pay a different price for a similar apartment in Senamiesti, Žvēryne, Antakalnyi or Pashilaičiai, so with recreational real estate – the price of a similar apartment in the districts of Molėtai, Ignalina, Švenčioni or Kupiškis can be significantly different.”
“Namudes” photo/Renovated log farmhouse for sale, Šišniškės village, Švenčioni district.
According to the real estate expert, the district or object has a lot of influence on prices.brendas“, the name of the known forest or lake where the homestead is located, the distance to the buyer’s residence, etc.
“Aukštaitija National Park, Labanoros giria, Molėtai, certain lakes – names that have already created an image and this increases the value and leads to a higher price of real estate objects located here,” shares the insights of a real estate broker. – For example, the price of a homestead near Molėtai has tripled in a decade – if it cost 25-35 thousand. EUR, now about 75-85 thousand. euros, the same apartment in Molėtai became four times more expensive – from 25-35 thousand. EUR to 100-125 thousand. euros. And for 1 ha of land suitable for building a homestead in the Aukštaitija National Park, you can pay up to 220,000. euros.”
“Namudes” photo/Homestead for sale on Sartė lake. bank, Zarasai district
“Distance also affects the demand for recreational real estate: a Vilnius resident can pay twice as much for a similar homestead in Labanoras Giris than one located in Šimoniis Giris, Kupiškis district,” shares the insights of more than 30 years old. an expert with experience in the real estate business.
The price of holiday real estate in Aukštaitia is also influenced by the geopolitical situation. According to the manager of “Namude”, in 2022 After Russia attacked Ukraine, the price of real estate in the regions of the country bordering Belarus decreased.
Vacation Property Columbus
According to him, in recent years, “homesteads are also bought by Columbus for recreation”. A. Boguševičius calls them the exhausted Lithuanian emigrants living abroad, who, after mixing the world, choose the peace of nature of their native country for rest.
“Namudes” photo/For sale 2.28 ha homestead, Vaidiuskiu village, Ignalina district.
“Our Columbuses, having discovered the wide world, are reassessing the advantages of Lithuania: here the population density is significantly lower and privacy is greater, the homesteads are still surrounded by natural “unstrained” nature. For the money you pay to buy a homestead in Lithuania, you won’t be able to buy anything similar in the country you live in, because such objects cost several times more in, say, Germany or England, – a real estate broker shares his experience. “They’re comparing the value they can get for the same money.”
For many, it is no less important that the hot regions of Europe are not suitable for recreation in the summer in recent years due to the excruciatingly high air temperature, and in Lithuania “we still have four seasons and in the summer we can take a breather and feast our eyes on the summer greenery”.
“Namudes” photo/For sale 10ha farmstead with 444m. On the shore of Lake Samava in the Gražutė regional park, Pameldynes village, Zarasu district.
Values peace and seeks security
Another category of holiday real estate buyers is those seeking to realize their dreams related to their existing or planned hobby, e.g. after retirement, change of work scope, etc.
“For some, the value is a homestead by a fishy lake, for others it is near forests suitable for hunting, kayaking routes, boundless walking paths… The third needs to experience the peace provided by nature,” says A. Boguševičius about the different needs of people buying real estate for recreation. – Therefore, when to “Namudę” applies for the purchase of real estate for recreation, first of all we clarify the expectations, wishes, inclinations, values of a person or family in as much detail as possible.”
The expert notices that in recent years, another “common denominator” of homestead owners has become evident: the desire for security.
“Namudes” photo/Homestead, Avinuosta, Zarasu district.
“Those who react more actively to the geopolitical situation see the homestead as a “survival basket”. It provides a sense of security, because in the event of a possible disaster, they will be able to take shelter here, independently create and develop their own well-being and live a contented life. Many learned this lesson during the pandemic, A. Boguševičius reminds us of past lessons. – The homestead becomes the answer to many modern challenges. When talking to the owners of homesteads, you feel that they see in them a certain fuse for the value of their property and their well-being, a guarantor of psychological peace.”
The influence of laws on the price of recreational real estate
The owner of the real estate agency in Aukštaitija points out that the price of recreational plots is also influenced by politicians’ decisions and changes in normative acts.
“Namudes” photo/Homesteads for sale in Želva lake, Sanklodiškiu village, Molėtų district.
When the decision was made to increase the farmer’s homestead from 0.5 to 2 ha, now 0.5 ha agricultural plots, which their owners planned to sell to those who want to establish holiday homesteads, can be “taken to the garbage dump”. It would be difficult to build a homestead on plots smaller than 2 ha, even if you become a “paper farmer”, unless you connect the plots to the required size. With the further tightening of the rules that a farmer’s homestead can be created only after you have declared income from agricultural activities for three years, even 2 ha plots become in questionable demand, as at least four years may pass before the creation of a homestead.
“Who will agree to wait that long? Consequently, a lot of land near lakes and in forests falls out of attractive real estate for recreation, which will further increase the price of real estate suitable for recreation”, – A. Boguševičius speaks about the impact of changing laws on recreational real estate.
Another limitation to the creation of holiday homesteads by the lakes was imposed by the decision on the creation of recreational areas, which stipulated that the construction of real estate for private recreation in these areas is restricted.
According to the manager of “Namudes”, they also save those owners of recreational real estate who decide to sell it due to changed circumstances.
“Namudes” photo/Farmland for sale in Aukštaitija National Park, Vaidiuskiu village, Ignalina district.
The best time to buy real estate for recreation
By the way, specialists note that it is most rational to purchase real estate for recreation in autumn or even winter. First, at that time, its price is usually the lowest, and price negotiations are easier. Secondly, in autumn and winter, many builders reduce their work and lower prices significantly, even by half, so if you buy a vacation home before the new season, you will be able to arrange it according to your vision, refine it, and you will have more time to prepare the project without tension.
“At the moment, nature sheds its make-up and can see the real face of the real estate purchase,” quips an expert with 30 years of real estate trading experience. “It’s nice when a person who has bought the homestead of his dreams is happy that he bought a real estate with the money he had, which has value not only because it preserves his property, but also brings complete joy and well-being to him and his family.”
#homestead #safe #haven #troubled #times #Business
