ING Luxembourg today reported that 91% of residents in the Grand Duchy declared that they are able to repay their mortgages without too many issues, despite reporting that they considered current property prices too high.
In the same ING International Survey on Homes and Mortgages that found Luxembourg residents losing confidence in property purchasing conditions, it was discovered that 91% of those who found it easy to repay their loan or rents shared the perception that home prices are high, versus 52% for the average European.
The Grand Duchy was also the country where the largest number of those polled, irregardless of age, believed that, from a financial viewpoint, it was better to own a home than to rent one, versus 86% for the European average and 70% for Spain.
It would appear that repayment capacity does not constitute the only factor leading to the opinion that prices are too high. All Europeans agreed that income represented the most decisive factor in determining a home purchase, and in Luxembourg this was followed by savings and the level of home prices.
In terms of location for the future home, price was agreed as the most decisive factor for Europeans, followed by the size of the home or proximity to public transportation, whilst distance from the workplace seemed insignificant.
