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Foreign students camp out in housing protest

Homeless students enrolled at Stockholm University are camping out in campus grounds after having exhausted all alternatives and to protest at the lack of accommodation offered them on arrival in Sweden.

Foreign students camp out in housing protest

“There are around ten students currently camping. This by no means how many are in fact homeless – it takes a lot of courage to come to terms with being homeless, and to live in a tent,” said Kyle Verboomen, who is engaged as international student coordinator at the Stockholm University student union, to The Local on Tuesday.

Verboomen said that many students arriving at Stockholm University for the autumn term were misled to believe that accommodation would be made available but when they arrived found that this was not the case.

“There is simply not enough room in the pot. I would say to the university – do not admit students that you can not house,” he said, arguing that a coordinated approach is required to ensure that all departments are giving out accurate information over the situation.

The student union has responded to the situation by providing tents for homeless international students as a last resort, and as a protest to push the university to act.

The union has urged Stockholm residents to get in touch if they are able to offer a room, a couch, or floor space to needy students, even if only for a short period of time.

“It is not nice for the international students to be camping out, by a public walkway and with all the Swedish students walking past and seeing them there,” Verboomen said.

Housing shortages are a common feature of student life in several Swedish cities, but in Stockholm the problems are exacerbated by a rental housing market that exists in name only.

More than 300,000 people are waiting in line for a rental contract in the capital, home to around 2 million people. While this doesn’t mean that as many are in fact homeless, a large number live in unstable sub-let arrangements, leaving slim picking for groups, such as international students, who arrive for short term stays.

The queue for student apartments in Stockholm has increased dramatically over the past few years to 50,000 people for a housing stock of only 8,000 dwellings.

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PROPERTY

Why buying property in Austria remains unaffordable for most

Buying a home in Austria is a dream for many international residents, but it remains out of reach for the average earner.

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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