Croatians have been traditionally believing in brick homes only

In the latest episode of BizCasting, the host Miro Soldić introduced a guest - Samson of the Croatian real estate world, Boro Vujović. Owner of Opereta, the largest Zagreb real estate agency, he talked about the impact of the corona virus on the real estate market, the potential bursting of the real estate bubble, state subsidies, Croatian tradition of investing in brick and concrete and other interesting topics. He emphasizes that over 50% of homes are bought for cash in Croatia and that it is usually Dalmatians who earn from tourism and then invest that money in homes in Zagreb. This is one of the factors why the price per square meter in the metropolis keeps rising, with low interest rates on loans and a growing economy until a few months ago. He revealed that just over two years ago, he was a sub-letter, initially because all the money he earned on real estate was lost by investing in stocks, and later because he himself started investing in real estate and it proved to be profitable. 'I bought two apartments that didn't have completely clean papers, but I sorted them out because I'm in this business and I had the money for it, say 50,000 euros, two apartments that I rented out and earned 500 euros a month. That covered the rent for an apartment whose market value was 200,000 euros. If I had bought that 200,000 euro apartment, I would have had a loan of 2,000 euros, so this was much more favorable for me', explained Vujović, adding that the problem is that these things are not part of the basic education here. That's why he personally constantly works on himself and reads literature that helps him invest the money he earns so that it works for him. In the BizCasting, he recalled how all the money he earned until 2008 was lost by investing in stocks because he saw his friends making a fortune with it. 'I was greedy and got in it for the wrong reasons and I was never satisfied, I just annoyed myself, and when the crisis came I was left with nothing', he said. However, in that crisis, the business of Opereta flourished because they were proactive, looked for clients and because of that they rose by 400% while others were falling apart. 'We didn't let our business happen to us but we called people and worked hard. And now, after the shock, we called clients and asked them what we could do for them. We grew like that', Vujović stated, adding that employee education is also important. 'Training is very important in sales, although it sounds strange, it's similar to sports. We conduct conversations with each other to see where we're going wrong and then come to the client prepared. Education and training are very, very important, it's the key to our success. Some companies hire trainers, but some leave everything to natural talent. I think that's not enough', he said. Asked what the agency offers to buyers and why they would pay a brokerage fee instead of going through it themselves, Vujović replies that he admires people who go through such an endeavor on their own because it can lead to big problems with ownership and it's huge money and investment that many people only make once in a lifetime. 'I as an agent can present you with some options that may not have been in your narrower selection, and they would be suitable for your lifestyle. I can save you time and money, help you with loans, negotiate for you and ensure that all parties involved are satisfied with the outcome. Not to mention the fact that you're protected in terms of papers and permits. Your job is to bring the money and say - I want to buy that, and the rest is my responsibility', he explained and warned that the real estate business is also filled with 'half-worlds' because the threshold for entry into this business is very low, so anyone can think they can be an agent and make a quick deal. He believes that the COVID-19 situation will wash away all such characters and only those who work qualitatively will survive. He agreed that the prices of real estate in Zagreb are overpriced and that there will be a correction, but not for homes and apartments that don't have objective quality. He also believes that state subsidies are misguided because they are time-limited and lead to a period when there is no demand on the market, and then a rush in the time of the competition. The market reacts by making the price correct towards the top and the story makes no sense. When asked to what extent the irrational rise in prices on the market is influenced by the mentality of citizens who look at real estate as an investment that is speculated upon and in which all excess money is invested, Vujović responded that Croatians have traditionally believed in brick homes only. 'It's in our genetic code. When you earn something, you invest it in a brick because the interest on savings is zero point something, and the rental income, whatever it is, is around 3 or 4 percent. That's why we buy real estate as an investment, it's real and lasting value, and that's why I think it's good for us to have so much real estate', he elaborated.

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