One way to avoid the ever-increasing rents is to buy a property. Again, of course, prices here have risen too and it is not easy to find still affordable condominiums. With a little perseverance, however, subsidized property or co-operative housing is still available. The zero interest rate of the European Central Bank makes lending rates as low as never before and thus also equity loans for, for example, co-operative housing can be financed at favourable conditions. Thomas Schaufler, CEO of Erste Bank: “The low-interest phase will continue for a longer time. You can’t emphasize it often enough: people really ought to secure themselves these low interest rates.” Even today, one can take out a housing loan over 100,000 Euros with a term of 25 years and a variable interest rate of 1.2 percent (381.06 Euros per month) or with a term of 15 years and a fixed interest rate of 1.3 percent (393.68 Euros per month). Schaufler: “Anyone who is willing to pay 12.62 Euros more per month for a loan can sleep easy for the next 15 years because the loan rate will remain the same.”
2.6 billion for subsidized housing
Erste Bank CEO Bosek: “Living has become a central issue in Austria and we see it as a social mission to make living affordable again.” Erste Bank has been very active in the field of housing in recent years. Financing of 2.6 billion Euros went into subsidized housing. With this money, 20,000 apartments, student and senior citizen homes were built in Austria. Bosek: “We will continue on this path in the coming years and even intensify our commitment due to the high demand.”
About the survey: On behalf of Erste Bank und Sparkassen, the market research institute INTEGRAL carried out an online survey with 1,800 participants (16-69 years) on the topic of "Affordable Housing" in June 2019. This survey is representative of the Austrian population.