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Real estate & home loans: shocking differences between Budapest and other big cities
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The average monthly salaries and real estate prices vary drastically across the country. While some people can easily pay back a home loan, it can take its toll on another family’s budget, depending on where they live.
Buying one’s own home is something we all dream of. Unfortunately, this dream is only possible for many with the help of home loans. Ingatlan.com and the Central Statistical Office looked at some data to figure out how people from different parts of the country can live and pay back loan instalments considering the real estate prices and average net income where they live.
In Hungary, buyers are required to have at least 20% or 30% of the total price of their desired real estate to acquire a loan from a bank to pay for the rest. Also,
people can spend maximum 50% or 60% of their monthly net income on loan repayments.
However, experts suggest never to reach this mark, because it would not leave room for unexpected expenses in the family budget. Once the loan is granted, people continue to pay it back in monthly instalments.
As real estate prices and monthly net salaries differ vastly in different parts of the country, it takes a much bigger toll on some people’s livelihoods to pay back a loan than on another’s.