OP-Pohjola Group's Housing Barometer: Abolishing Home Mortgage Interest Deduction Would Not Affect Plans to Buy and Sell Homes
(Thomson Reuters ONE) -
A third of Finns would be ready to abolish or reduce the deduction for interest
on home loans. The strongest supporters were found among those aged between 18
and 25, living in rented flats and planning to buy their first home, whereas the
strongest opponents were found among those with a home loan, families with
children, those aged between 35-54 and those considering selling their home and
buying a new one in the near future.
This is the outcome of OP-Pohjola Group's Housing Barometer, compiled now for
the fourth time, for which 2,000 Finns aged between 18 and 74 were interviewed
by IROResearch between 17 February and 8 March 2011.
This survey also reveals that almost two-thirds of the respondents would not
actually change their plans to buy and sell a home if the home mortgage interest
deduction were abolished or reduced. Half (51%) of the respondents also believe
that such abolition or reduction will restrain home price increases.
Greater home-buying intentions in areas outside the Helsinki Metropolitan Area
According to OP-Pohjola Group's housing barometer, people are showing greater
willingness to buy a home than in 2010. In particular, the number of potential
home buyers has increased in major cities (Turku, Tampere, Jyväskylä, Lahti,
Kuopio and Oulu). Around 13% of the respondents in 2010 had it in mind to buy a
home during the next three years against this year's figure of 21%.
- It would seem that this high level of activity is now spreading to other
growth poles, states Mikko Hyttinen, Senior Vice President, OP-Pohjola Group
Central Cooperative.
People have shown increasing willingness to purchase homes on a buy-to-let basis
elsewhere than in the Helsinki Metropolitan Area and other major cities. In
2010, 5% of the respondents planned to purchase a buy-to-let flat. Now the
figure is 10%. Home-buying intentions have remained at the previous year's level
in the Helsinki Metropolitan Area and other major cities.
Home prices regarded as reasonable
Well over half (59%) of the respondents think that home prices are reasonable or
affordable. Almost half (45%) of those living in the Helsinki Metropolitan Area
share this view.
- Perhaps, people do not consider the level of home prices high, because the
ratio of home prices to disposable income has remained roughly the same for well
over ten years now.
The largest group of the respondents who consider home prices affordable was
found among those planning to buy their first home, i.e. 62% of them think that
home prices in their neighbourhood are reasonable or affordable. First-time
buyers were also those who expressed the strongest expectation of higher home
prices next year. In 2011, 63% of those planning to buy their first home expect
that home prices will rise within the next 12 months, as against 52% a year ago.
For more information, please contact: Mikko Hyttinen, mikko.hyttinen (at) op.fi or
tel. +358 (0)10 252 2211
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(i) the releases contained herein are protected by copyright and
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originality of the information contained therein.
Source: Pohjola Pankki Oyj via Thomson Reuters ONE
[HUG#1505398]
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Datum: 12.04.2011 - 10:01 Uhr
Sprache: Deutsch
News-ID 53412
Anzahl Zeichen: 3836
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"OP-Pohjola Group's Housing Barometer: Abolishing Home Mortgage Interest Deduction Would Not Affect Plans to Buy and Sell Homes"
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