Most Latvian residents currently living in rented housing would consider buying their own place if the monthly mortgage payment was similar to what they pay in rent now, according to a survey by Luminor Bank.
The study shows that 80% of Latvian residents live in housing owned by themselves or their family. Of those, 51% live in flats and 29% in private houses. Homeowners are most often aged 50 to 60.
The survey reveals that 83% of renters would be ready to buy their own place if the loan payment matched their current rent. That intent is especially strong among 18 to 39 year olds.
According to the bank's data, the average rent for a two-room flat in Riga this March was 615 EUR in new builds and 370 EUR in Soviet-era panel buildings.
For comparison, the average monthly mortgage payment in a new build last year was 645 EUR, and 305 EUR for panel flats.
The bank also points to the support programmes from the state development finance institution Altum, which help young families and key workers cover the deposit on a home.
According to bank data, 60% of mortgages in Latvia are taken out with a co-borrower, and 45% of cases use state support for the down payment.
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