Coronavirus has sparked widespread speculation and misinformation, leaving property owners and investors uncertain about their next moves. David Borck, managing director and real estate expert, sets the record straight on the most common misconceptions surrounding property purchases.

Mr. Borck, there's a rumor making the rounds that banks will now only finance civil servants. How much truth is there to this claim?

That's simply not the case. Customers are being financed under the same terms as before the crisis. A positive credit history remains a requirement, and creditworthiness continues to play a key role. Banks ultimately base their lending decisions on how individual credit scores evaluate, determining whether they'll approve a loan.

Is it true that loan approvals are taking considerably longer right now?

In our experience, the shift to remote work has added one to two days to processing times, as banks adapt to the crisis. The real bottleneck stems from the flood of business loan applications currently being submitted. Based on what we're seeing, typical processing now takes around three weeks.

What about rising interest rates?

Our financial experts have confirmed a short-term increase of roughly 0.25%. The encouraging news: several banks have already signaled they plan to lower rates again.

Do you think the coronavirus will drive property prices down?

Unlike stocks, real estate proves resilient during crises—short-term market swings simply don't affect it the same way. That's why properties will continue attracting investors. For owner-occupiers, there's an added bonus: the rent they save translates into stronger returns.

On that note—are you worried about a surge in foreclosures during the second half of 2020?

Not at all. Banks are already stepping in to help customers facing financial strain and working out solutions. Our financing partners have confirmed this firsthand. For instance, several banks now allow borrowers to pause loan repayments for up to six months—an option far more limited for renters.

Would you still recommend buying property right now?

That's not a one-size-fits-all question. We evaluate each client's specific situation and needs individually. What's important to remember: property investment is fundamentally long-term in nature, and it tends to weather short-term crises and market volatility far better than other investments. So if your financial situation permits, my recommendation is clear—buy.

How is your real estate office navigating these challenging times?

Of course, we also comply with coronavirus safety measures. Most of our staff are therefore working from home. However, it remains possible to view our properties—for example, through individual appointments, and in some cases without a real estate agent. Additionally, we've expanded our digital offerings. We now provide virtual viewing appointments via video chat as well as 3D property tours with 360-degree functionality. These are already available for select properties on www.david-borck.de. Furthermore, we continue to offer our complimentary, independent financing consultation. During the coronavirus pandemic, these consultations naturally take place by phone. This allows us to provide our customers with our full range of services as usual—without any health risks.