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Slovak on Average Pay with Mortgage Has to Live on €264 per Month
Thursday 17 December 2009 Zoom in | Print page
Bratislava, December 17 (TASR) - Despite falling real estate prices and lower mortgage interest rates, it is still too expensive for a Slovak with an average salary to buy a flat, according to an analysis carried out by UniCredit Bank Slovakia and published on Thursday.
According to the analysis, only €264 is left from the salary of an average Slovak after making the monthly payment.
The analysis is based on purchasing a flat of 70m2 with a mortgage for 30 years, 4-5 percent interest and the credit covering 80 percent of the total price. "The remaining €264 in effect forces people to buy a flat as a couple, earn more, or stay in rented accommodations," said UniCredit Bank's macro-analyst David Derenik.
People from Presov region have the least money (€163) left in their wallet after paying off the monthly repayments, even though real estate prices in the region have fallen by 25 percent. Despite the fact that salaries in Bratislava region are twice that of Presov region, real-estate prices twice as high have put the capital region in the second worst place in terms living standards. An average Bratislava earner has to live on €241 a month.
According to the poll, people from Trencin, Trnava and Nitra region have the best conditions in terms of buying a flat. This is especially thanks to industrial parks, the arrival of which has brought higher salaries. In addition, real estate prices in these regions haven't been rising as fast as in Bratislava or Kosice region.
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