What does the youth’s ideal home look like? A new era on the real estate market: will there be a boom?
June 8th, 2016
⅔ of people under 30 years of age would like to move to a different home in 3 years, preferably to a flat with three rooms. Every third person asked would be willing to take out a loan to achieve their goals – as shown by the results of the survey carried out by OTP Bank and online magazine Szeretlek Magyarország (I Love You Hungary). Besides pricing, the most important factors in choosing a property is the location and easy accessibility.
More than 800 visitors of the popular portal filled out a survey about homemaking and purchasing in early May. The majority of the answerers are young adults under the age of 30, which makes the fact that 53% live with their parents unsurprising. However, a noteworthy amount of them already pay rent on their own (24%), have a home of their own (17%), live in a dorm or have service accommodation (6%). Those who already left their parents’ home, have mostly done that because of their studies, while approximately a tenth of the participants moved in with their significant others, and 1% of them listed the approaching of the birth of their first child as a reason. In some cases, the move was motivated by the need for a home with better facilities.
What does the youth’s ideal flat look like?
The properties of the ideal flat can be easily described. The dream home should have 3 rooms, or even more – as told by ¾ of the participants –, while they also think that the bigger the total area it is, the better. Every third answerer wishes to have a home greater than 100 m2, but half of the young adults would settle for one between 50-100 m2. The majority of the participants (56%) is currently saving up for their new homes.
What does exactly matter when choosing a flat?
Mostly the price, closely followed by its location and the current state of the flat. Exposure and facilities are less important, even less important are neighbours and – as a surprise to experts – financeability. “Buying a real estate property is one of the most significant decisions we make in our lives” – commented Zoltán Kormos, OTP Bank’s head of mortgages. “According to our earlier researches focusing on financial decision making, people look for their new homes for a minimum of 6 months, in comparison to the maximum of a single month they spend on looking up all the funding opportunities. Due to the different state funding and benefits that can be acquired via banks, they could save several million Forints worth of money when purchasing a property. It can be useful to inquire about the available opportunities at bank advisors. This way, it can be clear how much someone can actually afford, sometimes even having a bigger amount of money they previously expected.”
The executive’s claims are further supported by the rest of the answers – young adults are aware that they will need some sort of a financial aid. No doubt that 50% of the participants are planning to buy their new homes from their own funds or with the help of their families, but simultaneously nearly the same amount of people have to resort to mortgages or state benefits, loans from loan associations, preferential loans or even cafeteria loans. As far as the date of the move’s concerned, results differ greatly. 25% of participants would like to move in a year, while another 25% would like to do that in 2-3 years. In general, ¾ of the answerers would like to move out of their current homes in 10 years. Every fourth person who has never made a housing loan is planning to do so in order to make the move possible.