In Ostrava and Olomouc, the cost of owning housing in the form of monthly mortgage payments is still comparable to rental payments. In Prague, however, rent is currently three times cheaper. This follows from the index of the company UlovDomov.cz, which processed comparisons for housing in the largest cities.
For example, in a 1 + kk apartment in Olomouc, people pay an average of 9,500 crowns for the rent. The repayment of a 90 percent mortgage agreed for 30 years at an interest rate of 5.97 percent per year would be approximately CZK 2,000 higher.
At the same time, apartment prices have been rising for a long time. “In recent years, however, we have witnessed double-digit growth in some cities. they started a slight growth only last autumn, “said Michal Hrbatý, director of UlovDomov.cz.
Olomouc and Ostrava are the most favorable in comparison. The prices of monthly payments for 90% mortgages are similar to how much people pay for a classic rental.
In Brno and also in Prague, however, the differences are much more pronounced. “We can interpret the index simply in such a way that, for example, in Brno, the monthly mortgage payment is currently roughly double the monthly rent payment,” Hrbatý pointed out.
In Prague, mortgage payments for the 1 + kk and 3 + kk categories are more than two and a half times higher than for the monthly rent.
There is an even bigger difference in the most popular category 2 + kk, where the average rent is 15,500 crowns. “However, the mortgage payment for an apartment of the same size is three times higher and is around 46 thousand crowns. This is, of course, a price that not everyone can pay,” Hrbatý said.
The company used a mortgage on 90 percent of the mortgaged property to calculate the index. It is available to people under the age of 36, which makes up over half of those interested in mortgages. According to current CNB rules, people over the age of 36 can obtain a mortgage at 80 percent of the mortgage value of the property. Using an 80 percent mortgage would lower the index a bit, but the need for initial cash would increase.
“For example, with an 80% loan for a 2 + kk apartment in Prague, the model loan repayment is reduced to 41 thousand crowns and thus the index from 3.0 to 2.7. However, 1.7 million crowns in cash are needed to buy such an apartment, “Hrbatý pointed out.
According to him, available statistics show that rental housing will play a major role in large cities in the future. .
Through the Ideal Tenant service, UlovDomov.cz takes care of more than 1,800 properties worth more than 11 billion crowns to private owners.
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