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ANALYSIS OF THE HOUSING AFFORDABILITY AND ITS COMPARISON BETWEEN CZECH REPUBLIC AND LITHUANIA. Ing. David Slavata, Ph.D. Department of Public Economy Faculty of Economics , VŠB – TU Ostrava. LITHUANIA, ERASMUS 2018 Alytus – 7. 11. 2018. The Aim of the Lesson.
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ANALYSIS OF THE HOUSING AFFORDABILITY AND ITS COMPARISON BETWEEN CZECH REPUBLIC AND LITHUANIA Ing. David Slavata, Ph.D. Department of Public Economy FacultyofEconomics, VŠB – TU Ostrava LITHUANIA, ERASMUS 2018 Alytus – 7. 11. 2018
The Aim of the Lesson • To analyzehousingaffordability in selectedEuropeancountries and to compareitwiththesituation in Czech Republic and in Lithuania. • To compare and analyzehistoricalrealestate market data of Czech (Czechoslovakia) • To indicatepresentovervaluationorundervaluationofflats in Lithuania and in Czech Republic.
The questions • In whichofourcountriesthereishigher probability ofhousingaffordability? • Ifyouwouldhave 150 000 EUR, in what country youwouldprefare to investto reachhigher profit? • In whatofourcountriesthereishigher risk ofhousingpricedecrease?
The Indicators PI ratio = P / I PGDP ratio = P / GDP PW ratio = P / W MI ratio = M / I PR ratio = P / R OUn = (P/In+ P/Rn) – sum ((P/I + P/R)/N) / sum ((P/I + P/R)/N)
We need to indicate: • Flat prices • Monthly payed rents • Salaries
The Data Sources • www.czso.cz • www.trzniceny.cz • Eurostat • www.numbeo.com
Comparison to the level of present prices of European countries: +32,15% Comparison to the level of historical Czech (Czechoslovak, Habsburk Empire) prices: +36,11 %
Reasons of overvaluation in Czech Republic • Mortgage interests • Increase of wages • Demographical aspects • Impact of monetary policy
Reasons for overvaluation of flats in Lithuania • Restrictions for buing of real estates (?) • Mortgage interest • Transfer of finances from abroad
The answers • In which of our countries there is higher probability of housing affordability? • If you would have 150 000 EUR, in what country you would prefare to invest to reach higher profit? • In what of our countries there is higher risk of housing price decrease?