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?
Nowadays, many clinics would be glad if they could retain their staff with company-provided housing. It would save on job advertisements in London.
Expectations for apartments and houses from 1980, building regulations from 1980, and home ownership were still affordable then. Walk-in closets, children’s bathrooms, rain showers, and energy-saving regulations are now driving up prices.
I expected more from the minimum wage. My competitors from Eastern Europe are still extremely cheap. Apart from that, the minimum wage should be tax-free.
Expectations for apartments and houses from 1980, building regulations from 1980, and home ownership were still affordable then. Walk-in closets, children’s bathrooms, rain showers, and energy-saving regulations are now driving up prices.
I expected more from the minimum wage. My competitors from Eastern Europe are still extremely cheap. Apart from that, the minimum wage should be tax-free.
kaho674 schrieb:
I actually meant it in a positive way – not negative as you suggested.This works the same way in both directions. If you raise the basic unemployment benefit to 800 euros and remove the “sanctions,” an unskilled worker will suddenly have at least 1600 euros net in their pocket due to the wage gap rule. But if that person already earns 1600, you won’t get a skilled worker for that wage, and they will then earn significantly more than 2000 euros going forward... and so the spiral continues upward. (Figures are hypothetical)
Similarly, the government could simply pay its employees higher wages and thus compete with the “private sector.”
And of course, the government could straightforwardly reduce taxes or social security contributions on incomes up to a certain level.
However, this – like the entire housing discussion – is not really related to the topic. The original poster wants to buy, not rent. And there are basically only three options:
1) Luck
2) Money
3) Connections
…often a combination of all three
High construction costs are frequently discussed here. It’s not that I don’t complain about it as well, but it should be put into perspective.
Just some food for thought, a hypothetical example:
Total costs of €500,000 with €150,000 equity, so a financing requirement of €350,000.
At, say, 1.5% interest and 3% initial repayment, that results in a monthly payment of about €1,300.
Everything used to be better and real estate cheaper...
Well... 10 years ago? I can say this by chance, as one of my fixed interest periods is expiring, the rate back then was 4.1%.
Now anyone can sit down and calculate backwards. To have a similar term and monthly payment, the property would have to be €100,000 cheaper.
That would mean a price of €400,000 instead of €500,000. Inflation aside.
But in both cases, the total overall cost in the end is the same.
Perhaps a significant factor is the shift from falling interest on borrowed capital to increases in construction costs. Add to that the usual effect of inflation, stricter energy efficiency regulations that prevent building as before 10 years ago, plus significantly higher desired standards...
...just something to think about...
But this doesn’t change the issue of scarcity—that even those who want to and can afford to build find it difficult.
Just some food for thought, a hypothetical example:
Total costs of €500,000 with €150,000 equity, so a financing requirement of €350,000.
At, say, 1.5% interest and 3% initial repayment, that results in a monthly payment of about €1,300.
Everything used to be better and real estate cheaper...
Well... 10 years ago? I can say this by chance, as one of my fixed interest periods is expiring, the rate back then was 4.1%.
Now anyone can sit down and calculate backwards. To have a similar term and monthly payment, the property would have to be €100,000 cheaper.
That would mean a price of €400,000 instead of €500,000. Inflation aside.
But in both cases, the total overall cost in the end is the same.
Perhaps a significant factor is the shift from falling interest on borrowed capital to increases in construction costs. Add to that the usual effect of inflation, stricter energy efficiency regulations that prevent building as before 10 years ago, plus significantly higher desired standards...
...just something to think about...
But this doesn’t change the issue of scarcity—that even those who want to and can afford to build find it difficult.