If the buyer of a new apartment has any savings left, it will be more profitable for him to immediately invest it in repairs. Andrey Sirotkin, senior lecturer at the Department of Banking at Synergy University, told socialbites.ca.
“With the current inflation, prices for building materials will rise in two to three months, so it will be less profitable to open a savings account to provide additional income for repairs. Opening a savings account with a maturity of three months with 3 million rubles, you can earn about 150 thousand rubles at maturity . Whether this income is enough for “cosmetic” repairs is a rhetorical question. On the other hand, maybe you should not open a savings account or invest 3 million rubles, but it is better to immediately invest the money in repairs,” said the economist.
According to him, it is now becoming increasingly difficult to save for repairs because inflation is also accelerating the prices of building materials. Traditionally, one saves for one repair, but the actual work will be completed in a much smaller volume than planned.
According to the Central Bank, annual inflation in Russia was 8.4% as of October 21, 2024. This rate is expected to be in the range of 8-8.5% by the end of the year. The annual price increase rate reached 8.62% in September. To control inflation, on October 25 the regulator increased the key interest rate by 200 basis points to 21% annually.
What will increasing the interest rate to 21 percent lead to? material.
What are you thinking?
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.