Every tenth Czech between 26 and 36 years of age (around 150,000 people) plans to buy or build a property in the next 12 months and 15 percent of young Czechs intend to renovate their home, according to a survey by NMS Market Research presented to reporters by the CSOB bank group today.
The survey also shows that approximately half of young people plan to change their home in the next five years. Striving for homeownership is still very important for young families, despite growing interest rates and real estate prices.
The current situation on the mortgage market and rising interest rates especially affect young families that wish to own their home, said CSOB board member Jan Sadil, adding that these people are an exceptionally important segment for the entire economy.
Half of young people find that sufficient net income to cover a mortgage is at least Kc35,000 and most of them would apply for a mortgage of CZK 2-3m. A third would like the monthly instalment not to exceed CZK 10,000.
Some 70 percent of young people are already saving money, often through home-building savings. The share of those who have saved over CZK 100,000 is growing gradually.
However, the data still show that young people underestimate the mortgage amount as well as the monthly instalments with respect to the current market situation.
“The average mortgage in this age group is already at CZK 3.6m,” said Jiri Feix, board chairman of mortgage bank Hypotecni banka and building society CSOB Stavebni sporitelna.
The survey was conducted in March among 1,000 respondents.
Source: CSOB and CTK
