The state of Latvia should buy all the real estate Latvians bought during the boom with LVL 15 bln (EEK 333 bln), Edgars Šins, the CEO of real estate company Latio told Dienas Bizness, aripaev.ee reports.
He believes if the state bought those homes, then the real estate market starts functioning normally again, biznews.lv quotes. The state could help troubled homeowners by taking over their housing loans.
“Currently the amount of housing loans is three times higher than real estate’s value. It’s not fair to leave people alone with that problem. At the same time it shouldn’t be solved by manipulating with taxes. More radical decisions are needed,” he said.
The radical decision would mean that the state will take over people’s home loans and keeps the real estate until better times come. Šins estimated it would take about LVL 15 bln.
Latio is also operating in Estonia and managed by Šins.
Source: BBN
Filed under: Latvia, Real estate
