ᐅ Is the real estate market increasingly forcing families to build their own homes?
Created on: 6 Apr 2019 11:35
T
Thierse
Actually, we would prefer to avoid building. Unfortunately, existing properties within a 20 km (12 miles) radius have become quite expensive, and affordable rental houses with small gardens are simply scarce.
Until now, we have been living in an old rental apartment without a garden. We would like to change that, but there is a lack of options. The listings on various platforms are overcrowded with families looking for affordable housing.
Who is familiar with this situation, and how do you deal with it?
Until now, we have been living in an old rental apartment without a garden. We would like to change that, but there is a lack of options. The listings on various platforms are overcrowded with families looking for affordable housing.
Who is familiar with this situation, and how do you deal with it?
The market is unfortunately very challenging at the moment. We live in a medium-sized city where a new single-family home or detached house is not possible for under one million. That’s just the starting point. We have therefore decided to move to the countryside (10 minutes to the city) and have been able to realize the dream of owning our own home. But even there, nothing is available under 600,000.
chand1986 schrieb:
Excuse me?I actually meant it in a positive way – not in the negative sense as you suggested. That was unclear on my part, sorry.chand1986 schrieb:
And as a result, there is a crisis in Europe, the central bank has to lower the interest rate to zero, and housing becomes expensive. Which brings us back on topic. The zero interest rates actually sparked the desire for owning a home in the first place, so it’s a bit of a circular issue. Many people have not been doing so well for a long time, and the population is growing uncontrollably.
C
chand19867 Apr 2019 10:54kaho674 schrieb:
I actually meant it in a positive way — not in the negative sense you pointed out. That was unclear on my part, sorry. Ah, okay. Now I understand.
Nordlys schrieb:
If a developer had four standard models, you picked one, and you could only choose the color of the curtains, then very different prices would be possible. But...for most people here, that’s a nightmare. Karsten The liberal free spirit and individualist preaching social housing as a solution? I told you, Diet Coke doesn’t go down well...
But sure, the expectations for single-family home construction have really reached the top tier nowadays. However, that has nothing to do with affordable rental apartments in city centers. I fully agree with:
Nordlys schrieb:
Everything sold off, privatized — how foolish was that! That was foolish, but intentional. Because the market can supposedly handle it better, and hospitals have to run profitably, and so on. Like the railway, which, as we all know, has really improved since it was listed on the stock exchange...
chand, I'm not saying everyone should just build without care. What I’m saying is that currently, there doesn’t seem to be a market for simple, highly streamlined construction. Unlike cars, where there is a market for budget models like Dacias. One niche in construction is occupied by the German row house. They are built quite to a standard design. K.
It is quite a complex topic. There are additional factors as well, such as the potential future government access to real estate through a forced lien on property owners. This has happened before in Germany (Lastenausgleichsgesetz) and has also been discussed in the federal parliament.
The euro crisis is not over yet; the worst is still to come. A look at the so-called Target2 balances is enough to see this. These are alarming figures.
I don’t fully trust our government or Europe on these matters, and homeowners have limited means to defend themselves.
Furthermore, a house ties up a significant amount of capital. With a long-term investment in broadly diversified index funds, more capital can be accumulated than with a house, which typically requires initial repairs after only 20 years.
Owning a home is a great thing. However, many overstretch themselves financially or are unable to build other retirement savings for financial reasons. And owning a paid-off home doesn’t really mean living rent-free. There are always ongoing costs, which can be managed better. But many delay necessary maintenance until a major backlog of renovations develops.
The euro crisis is not over yet; the worst is still to come. A look at the so-called Target2 balances is enough to see this. These are alarming figures.
I don’t fully trust our government or Europe on these matters, and homeowners have limited means to defend themselves.
Furthermore, a house ties up a significant amount of capital. With a long-term investment in broadly diversified index funds, more capital can be accumulated than with a house, which typically requires initial repairs after only 20 years.
Owning a home is a great thing. However, many overstretch themselves financially or are unable to build other retirement savings for financial reasons. And owning a paid-off home doesn’t really mean living rent-free. There are always ongoing costs, which can be managed better. But many delay necessary maintenance until a major backlog of renovations develops.
Similar topics