5. CEE Capital city price ranges – new residential more mature market
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8. How much can I borrow? Mortgage loan capacity evolution A couple earning combined income equal to 3 x average salary ie 150% of average each 140 105 57 Multiple 130 000 95 000 35 500 Max borrowing (EURO) for 3 x average salary 3 000 3 000 2 220 3 x average net salary (RON) 1 000 1 000 740 Ave net salary RON (approx) 2007 CHF loan +grace period 2007 EUR loan +grace period 2005 (EUR)
9. Salary indices – construction and average Source: Eurostat via demography.matters.blog
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11. Dwellings completed each year BASELINE – 98% individual homes – self financed BUT NOW: AN ADDITIONAL 15 000 – 20 000 per year of homes in new developments on top of baseline
14. VOLATILITY OF MORTGAGE REPAYMENTS (1) 17.0% 6.1% 10.3% INCREASE OF 2 568 2 329 2 421 2 195 COMBINED RON/EURO 3.5 EURIBOR+100Bps Initial EURO100 000 mortgage loan tracker rate in EURO Monthly payment equivalent in RON (starting at RON/EURO 3.3 and initial interest rate of 7%)
15. VOLATILITY OF MORTGAGE REPAYMENTS (2) EXTREME CASE * Repayment/net income ratio in range 40-70% Note: 139% of 40% is 56%, 139% of 70% is 97% 39.3%* 15.2% 20.9% INCREASE OF 3 058 2 528 2 655 2 195 COMBINED RON/EURO 3.8 EURIBOR+200Bps Initial EURO100 000 mortgage loan tracker rate in EURO Monthly payment equivalent in RON (starting at RON/EURO 3.3 and initial interest rate of 7%)