We present to your attention an interesting survey conducted by Latvian developer "Domuss".
After surveying approximately 700 young and active residents of Riga and its suburbs, more than 47% of respondents answered that they are ready to pay up to 300 euros per month (for rent or a mortgage). That is, 300 euros is the optimal budget.
But it's important to note - for such money it is almost impossible to rent an apartment in Riga. Therefore, another 13% would be ready to allocate up to 400 euros.
Approximately 11% are ready to pay up to 500 euros per month for rent. And only a few are willing to pay more.
Understanding that rent is a "wasted" payment, many people take out mortgages. Obviously, for 300 euros you won't be able to rent a good apartment.
But if you save for a down payment and take out a mortgage for a long period (20-30 years), you can pay the same 300-400 euros to the bank.
Moreover, it is quite likely that this will be an apartment in a new building!
Of those surveyed, 41% are ready to pay the bank up to 300 euros per month. Another 21% have a budget of up to 400 euros. And every tenth person is willing to pay more than 500 euros per month.
Of course, an apartment as collateral is not an ideal option (unlike an apartment without encumbrances). But still, it is an investment in your own home (as opposed to renting).
Such surveys are very useful for investors. For example, if you are looking for an apartment to buy and rent out, you need to focus on the most popular segment. Then there will be no problems with tenants!
And if you are a developer, you can use a mortgage calculator to calculate the approximate transaction amount if the monthly payment to the bank is 300-400 euros, and the down payment is 10%.
If you can implement a project and sell apartments at such a price, you can be confident that such a project will be successful!
If you are interested in buying or selling an apartment - contact us, our company KOM-INVEST will be happy to help!
Have questions? We look forward to your email or call!
Phone number: +371 29774775 (Viber, WhatsApp)