THE FACTORS AFFECTING RENT VERSUS BUY DECISIONS AND IMPLICATION FOR THE HOUSING MARKET IN SLOVAKIA

Martina Fehérová ()
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Martina Fehérová: Faculty of National Economy, University of Economics in Bratislava

Almanach (Actual Issues in World Economics and Politics), 2018, vol. 13, issue 4, 19-29

Abstract: The prices of properties rose sharply and the mortgage interest rates decreased gradually. Young people aged 20-35, usually the potential first-time buyers are facing the decision whether to purchase an accommodation or to live in a rented property. Many first-time buyers prefer to live in a rented property according to the flexibility which this option offers. On the other hand, the mortgage interest rates reached historical minima lately, therefore mortgages became attractive for many young people who desired to own a dwelling. Slovak real estate market has been recently facing relative boom, related primarily to its belated onset until roughly the turn of the millennium, compared with house prices worldwide. The model is real example from the practice which comparing the advantages and disadvantages of the decision of accommodation purchase or renting.

Keywords: mortgage; first-time buyer; rent; buy; property; Slovakia (search for similar items in EconPapers)
JEL-codes: C33 F10 F21 (search for similar items in EconPapers)
Date: 2018
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