Bonava Study: Most People Believe a Monthly Family Income of Over 4000 Euros is Necessary to Buy a New Home

According to a survey commissioned by Bonava and conducted by Norstat, 40% of people believe that a net family income of over 5,000 euros is necessary to buy a new home in Tallinn, while 19% of respondents considered a minimum income of at least 4,000 euros necessary.

Bonava's sales and marketing manager Lauri Laanoja concluded from the survey that a large proportion of people perceive buying a new home as significantly more expensive than it could actually be. "It is possible to buy a quality and completely new 3-room apartment in Tallinn for an average of 240,000 euros. With typical home loan terms from banks, buying such a home requires approximately a 3,000-euro family income, meaning two people would need to each earn 1,500 euros net per month, leaving them with 2/3 of their income after loan payments for other expenses," explained Laanoja. The average net salary in Tallinn is approximately 1,800 euros.

Buying a new home is one of the most significant decisions a person makes in their lifetime, and when planning this decision, people try to look far ahead, which is why they approach the decision with caution and conservatism. "However, if people have the impression that buying a new home in Tallinn means 2,000 euros in monthly expenses from the family income, then many probably haven't even started considering it," said Laanoja.

Moreover, the survey revealed that buying a new home is life-changing for many, bringing about the following important steps in life arrangements: having children, getting a pet, working from a home office, and generally spending more time at home. "It is worth approaching banks to get a real picture of your home purchasing capacity and to familiarize yourself with what is offered on Tallinn's new apartment market. There are many reasonably priced quality new apartments that fit within the budgets of families with average incomes. It may turn out that your dream home is closer than you think," commented Lauri Laanoja.

The survey examining the attitudes of Harjumaa residents towards home purchases was conducted by the research firm Norstat. The survey, conducted in the summer, included 200 residents of Harjumaa aged 25-55 years.