Currently it is almost impossible for medium-sized companies in Austria to purchase property on the real estate market.
Reason: On the one hand, as a result of exploding energy prices and hyperinflation in the last year, very strict loan guidelines were issued in this country, including the requirement that the loan installment cannot exceed 40 per cent of the income Is. On the other hand, the European Central Bank (ECB) raised the key interest rate several times in the past year – it currently stands at 4.25 per cent.
As “Kleine Zeitung” reports, Arz Egenheim – a consortium of 100 housing companies – now calculates that with a net household income of 4000 euros per month, buying even a small apartment is unaffordable.
For a couple under 30 who earn 4,000 net per month, buying a 60 square meter apartment on 417,000 Euro gross is unattainable.
First, the current policy is that 20 percent of the purchase price must be paid for out of your own money. The remaining 80 percent, which would have to be financed by the loan, would be €333,000 in the present example.
However, with a term of 30 years and an interest rate of five percent, net 4,000 euros per month would not be enough. With a net household income of EUR 4000, the monthly loan installment should be a maximum of EUR 1600. However, in the given example, the actual financing amount would be €1750.
Therefore, Arge Eisenheim is now calling for an easing of tighter loan guidelines in the autumn.
