Up to 19 years savings Today a new pair is needed in Greece just to collect the advance purchase of residence.
The most impressive thing, however, is that this time is not about paying off the house itself, but only about the initial capital needed to be able to get a housing loan and pass through renting to ownership.
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High rents, increased cost of living and limited savings now form a stifling environment even for households with stable and relatively high incomes. In particular, According to the new Property investigation, the largest housing obstacle for the new generation is not so much the future monthly installment of a housing loan as the inability to collect the necessary advance and purchase costs.
This image reflects the profound change in the Greek housing market in recent years. Greece remains a country with high rates of ownership, but the picture differs considerably from the past. While in 2005 ownership rates were around 84%-86%, today about three out of ten residents live in rented residence, with rent gaining more and more weight in household everyday life.
Particularly difficult is the situation for young people aged 25 to 34 who now find it difficult to obtain their own residence. The generation that once could buy a house has been replaced by a generation that at 30 continues to rent or stay in the home, as access to homeownership increasingly depends on family financial support.
Why do we need 19 years to buy a house?
The first example presented by the survey concerns a couple with a net family income of approximately 3,000-3,500 euros a month and a child, who lives in a rented residence of approximately 90-100 square meters, paying rent of 900 to 1,000 euros monthly. The household wishes to acquire a home worth about 320,000 to 400,000 euros.
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The purchase of such a property requires initial capital of around 80,000 euros, as the buyer must cover both the advance of the mortgage and the transfer costs. However, high rent and daily needs, bills, supermarkets, travel and other expenses significantly limit the possibility of saving. Thus, this couple can save about 350 euros a month, which means it takes about 19 years only to collect the advance.
This is precisely the element that reflects the size of the problem, the 19 years are not about repaying the loan or the house itself, but only about the time it takes for a new household to enter the home market.
Family help changes everything
The same analysis shows that the picture changes drastically when there is family support. In the second scenario, the couple is temporarily hosted at a family residence and is not burdened with rent.
In this case, the amount available for savings is significantly increased and the household can save around 1,100 euros a month. Thus, the amount of the advance is reduced from about 19 years to 6 years.
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This element, according to the presentation, highlights a new form of social and housing inequality. In practice, a lead in the housing market is now available to those with financial support from the family, either through financial assistance or through free housing. Thus, access to ownership depends increasingly on family capital and less on household income itself.
Even higher incomes are not enough
Housing pressure, however, is not limited only to low or medium incomes. The survey also presented a second example of a family with a net income of around 5,000 euros a month, which seeks a larger residence, 110-120 square meters, in a better area of Athens.
The value of the property reaches around 450,000 euros, while the required initial capital for advance and purchase costs reaches about 110,000 euros. Despite the highest income, daily expenses, rent of 1,200 to 1,300 euros, bills, children's activities, movements and other liabilities dramatically limit the possibility of saving.
According to the calculations, this household manages to save around EUR 400 a month, which means it will take about 23 years to collect the necessary market capital. On the contrary, when there is family assistance and zero rent, time decreases to about 5 years.
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This image, according to Prosperty, proves that the housing problem no longer only concerns low incomes, but extends deeply to the middle class, even to households that until a few years ago were considered economically strong.
The «Lost generation» of ownership
The CEO of Prosperty, Antonis Markopoulos, during the presentation of the research at a recent conference, described young people aged 25 to 34 as the «lost generation of ownership». This image certainly has its social implications, as today only 10% of young people aged 25-34 live in a privately owned home, from 25% which was the corresponding percentage in 2005, while the percentage of tenants in the total population has increased to nearly 33% (3 out of 10 Greeks).
At the same time, Greece remains from the countries with the highest percentage of young people still living with their parents. The average departure from the parents' home reaches about 30-31 years, when the corresponding European average is around 26 years old. In countries such as Sweden, Denmark and Finland, young people have been independent even since 21 or 22 years old.
«Greece remains a country of owners, but is no longer a country of new owners», noted features.
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The geography of the residence changes
The housing crisis is now changing the demand map in Attica. As noted, buyers are gradually moving from «where I want to live» in «where I can afford».
In the northern suburbs, interested persons who until a few years ago targeted Kifisia now turn to more accessible areas, while those seeking a residence in New Psychiko move to Halandri, Papagos, Maroussi or Agia Paraskevi. Accordingly, in the southern suburbs, Glyfada and the coastal front are now removed from the potential of the middle residence, leading the demand to areas such as Argyroupoli, Ilioupoli, Agios Dimitrios, Muscat, Kallithea and Taurus.
At the same time, areas of the center such as Pagrati, Koukaki and Mets, which until a few years ago were considered relatively accessible, have now become prohibitive for much of the buyers, mainly due to the explosive development of short-term leases of the Airbnb type.
The new reality of the housing market
According to the picture presented, the housing crisis changes the housing selection criteria overall. Buyers gradually abandon the search for areas of high social prestige and turn more to functionality, connectivity and accessibility. Access to the subway, easy travel and the possibility of finding greater space at a lower price now become more important than the prestige of an area.
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At the same time, more and more interested people turn to older properties that need renovation or have lower standards, as newly built properties turn into «dream deceptive» For much of the middle class. As has been said, citizens are now beginning to reduce their expectations so that they can obtain a more affordable home.
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