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Cantona’s Rolls Royce raises €125,000

Eric Cantona, the legendary Manchester United footballer turned actor, raised €125,000 for a housing charity on Tuesday, when his customized Rolls Royce went under the hammer at an auction in Paris.

Published: 22 January 2013 20:10 CET

Cantona's Rolls Royce raises €125,000

Eric Cantona's 1984 Rolls Royce Corniche, transformed by Paris-based artist JonOne. Photo: Artcurial

Armelle Maquin, a spokeswoman for the Artcurial auction house and gallery which hosted the sale, told The Local that a 'French collector', who wanted to keep his identity private, had bought the 1984 Rolls-Royce Corniche for more than six times the starting price of 20,000 euros.

"It was just magnificent," said a Maquin. "We're so happy with today's results."

Most vintage car-owners would be horrified at the mere sight of a can of spray paint in the vicinity of their pride and joy but last November, the iconic 46-year-old former French footballer Eric "The King" Cantona did the unthinkable by inviting world-famous New York street-artist 'JonOne' to cover his Rolls-Royce in graffiti.

With the luxury model thoroughly tagged by the Paris-based artist, whose real name is John Perello, Cantona handed the vehicle over to the 'Fondation Abbe Pierre,' a French housing charity which counts the retired footballer among its celebrity patrons.

The reborn work of modern art had been on display at Artcurial near the Champs Elysée before being auctioned on Tuesday afternoon, along with other contemporary urban artworks.

Prior to the auction Maquin told The Local that "the interest surrounding the car is due to who it came from, the fact that JonOne has made it into a work of art, but also, of course, because of interest in helping the homeless.”

In an interview with French weekly Voici, Cantona, for his part, said: "It's the ultimate symbol of wealth, and now it's been associated with a symbol of poverty, by a true street artist."

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Why buying property in Austria remains unaffordable for most

Many people living in Austria dream of one day owning a home, but despite recent drops in property prices and interest rates, this dream is still out of reach for many average earners.

In Austria, it is recommended to not spend more than 40 percent of a monthly income on debt repayment.

But new analysis by tariff comparison portal durchblicker.at reveals that even a double-income household would need to spend around 60 percent of their income to afford a 90m² new-build apartment in Vienna.

While the government has created initiatives to improve the affordability, with attractive housing packages, fee reductions and eliminations of certain fees, such as the “Grundbucheintragsgebühr” (land register entry fee) and “Pfandrechtseintragungsgebühr” (mortgage registration fee) for properties up to a certain value, their impact has been limited.

Furthermore, the governments initiatives often overlook the specific needs of lower-income households and may benefit those who are already financially stable, leaving the average earner still struggling to afford a home, according to Der Standard.

READ ALSO: ‘Haushaltsversicherung’ – How does Austria’s home insurance work?

High prices, rates and strict lending criteria

One of the biggest barriers to owning a home in Austria is simply the sky-high property prices. Over the years, property prices have increased, making it more difficult for people with an average income to afford a place of their own. Even with recent minor dips in prices, they still remain high.

Another factor making owning a home challenging is the increase in interest rates in recent years. As a result, both existing variable-rate loans and newly obtained fixed-rate loans have become more expensive. Analysts expect the European Central Bank to cut interest rates by around 0.5 percent in the near future, but according to durchblicker’s calculations, this would initially only create a little relief for loan takers, where instead of around 60 percent, 55 percent of monthly household net income would be needed for debt repayment.

Another issue preventing many from realising their dream to buy a home is the difficulty in obtaining a mortgage. Since July 2022, stricter rules have applied in Austria for the granting of property loans. Loan applicants must have a deposit worth at least 20 percent of the value of their property to be granted a loan, according to the financial online platform Finanz.at. This means that even applicants with higher incomes may struggle to get their dream financed.

Furthermore, many loan takers with variable-rate loans, especially those recently obtained, are facing significant challenges. The variable interest rates have increased significantly since the initiation of these loans, resulting in higher monthly repayments, reported Der Standard.

Few people can afford their own home in Austria, especially in Vienna. Photo by Christian Lendl on Unsplash

Experts suggests fixed rate loans and cooperative housing models

Andreas Ederer, Head of Banking at durchblicker.at, recommends loan takers with variable-rate loans to change to fixed-rate loans. He suggests that fixed-rate loans have become more attractive as they are currently cheaper than variable-rate loans, reported Kurier.

Unlike fixed-rate loans, which have a steady interest rate throughout the loan term, variable-rate loans can change over time in response to shifts in market conditions or the economy.

Experts also suggest alternative models for increasing affordability. One idea is to create more opportunities for cooperative ownership with mandatory purchase options. This could offer a more affordable option where costs such as maintenance and taxes are shared. According to Der Standard, cooperatives also often have access to loans with better terms.

READ NEXT: How can I move into affordable cooperative housing in Vienna?

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