2017-12-22
People would be satisfied with living in Lithuania much more if they earned twice as much as now, while real estate is named by residents as the most attractive investment, shows the latest survey of the Bank of Lithuania.
‘Residents’ sentiment is basically neutral; however, we see some apprehension about the outlook for price increases, while the expectations about further income growth are cautious. The results of the survey also show that real estate, as an alternative for investment, is exhibiting an impressive gap from other types of investment, such as gold, deposits or securities, in popularity. This reconfirms Lithuanians’ attachment to housing’, said Milda Šeškutė, Economist at the Macroprudential Analysis Division of the Bank of Lithuania.
Every second household considers housing or other real estate the most attractive investment. However, at the same time every third resident surveyed believes that currently it is better to sell housing than buy it. By the way, there is an obvious trend that households with higher income are more tending to believe that currently the time is better for selling housing. One-tenth of households consider gold the most attractive investment (it is second most popular investment).
Every third resident would be more satisfied with living in Lithuania if their monthly income would amount to €901–1,500. Every third resident earning €900 per month would like to earn at least €2,000 per month. Meanwhile, half of those who earn up to €350 per month reported that earning up to €600 per month would be sufficient for them.
Three out of five households claimed that their financial situation is good or average. 45 per cent of the surveyed mentioned they earn sufficient for food and clothing, but they cannot afford a larger-value purchase (TV, refrigerator). Every third respondent stated their family does not have enough money even for food or has enough money for food but not enough for new clothes.
The survey shows that every second household manages to put aside at least some income. The monthly amount put aside is €31 to €150. Around a tenth of the respondents managed to save more than €300 per month. Households mostly save for worse times and for contingent expenses. Slightly more than every fourth household saved for old age and other long-term goals.
Nearly two-thirds of households reported their income remained unchanged over the past half-year, but the expectations about basic expenses over the next half-year worsened: six out of ten claimed they would rise. The greatest concerns for households will further be the rise in food prices (43%); while for every fourth rising utility prices will be the major concern. This time we asked in the survey if residents were on holiday abroad last year. 40 per cent of the surveyed said ‘yes’ and more than half reported they could not afford it.
Almost every second resident reported that over the last 12 months at least one of their closest relatives emigrated from Lithuania. This was reported by almost half of the respondents from smaller towns. Slightly less than every third household stated that over the next 12 months someone from their family members intends to emigrate from Lithuania.
The review of the survey of households is available here.