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?
H
hampshire8 Apr 2019 23:14They say: The devil always shits on the biggest pile.
But first, you have to make that pile somehow.
If you have nothing to bite on, you have nothing to shit on.
Economic developments leave too many people with too little to live on.
Meanwhile, those who have a decent income from assets pay a relatively low 25% tax on capital gains.
From a purely financial perspective, it makes sense to buy multiple properties, rent them out, and live in a rented place yourself. The financial burden can be managed with rental income, and from 10 residential units onwards, the risk of tenant default becomes less significant. The risk of inflation is eliminated. However, it would still be advisable not to invest everything into the same asset type.
Not my way of life. I’m not upset about that.
But first, you have to make that pile somehow.
If you have nothing to bite on, you have nothing to shit on.
Economic developments leave too many people with too little to live on.
Meanwhile, those who have a decent income from assets pay a relatively low 25% tax on capital gains.
From a purely financial perspective, it makes sense to buy multiple properties, rent them out, and live in a rented place yourself. The financial burden can be managed with rental income, and from 10 residential units onwards, the risk of tenant default becomes less significant. The risk of inflation is eliminated. However, it would still be advisable not to invest everything into the same asset type.
Not my way of life. I’m not upset about that.
Thierse schrieb:
We would actually prefer to avoid building a house. Unfortunately, existing properties within a 20 km (12 miles) radius have become quite expensive, and affordable rental houses with small gardens are simply hard to find.
So far, we live in an old rental apartment without a garden. We would like to change that, but there is a lack of available options. The search listings on various portals are overcrowded with families looking for affordable housing.
Who else knows this situation, and how do you deal with it?We know this situation well. I also never wanted to build, ever. Over five years, we viewed plenty of available houses, but only one was suitable for us as non-experts in construction, and even that one was quickly sold despite the high price. With the affordable properties, there was always some dealbreaker in the end—condition, location, or something else. The real gems on the market go almost exclusively by private sale. Without connections, you have no chance.
At some point, you have no choice but to come to terms with the idea of building.
I also believe that if you ask around in the current new housing developments, you’ll often hear that people actually didn’t want to live there in the first place.
Many people underestimate the amount of work a house can require. Some are happy with this because they enjoy working with their hands and being productive. That’s great.
However, there are also many who are not skilled at DIY and need to hire expensive professionals for almost everything. Or simply don’t have the time or desire to take care of the house, even on weekends. This should not be underestimated. And such people are increasingly being forced to build due to market developments, as it can sometimes be an economically viable option—at least initially.
What many also forget is to set aside the necessary reserves for the house. Experts recommend 1-2 €/m² (approximately 0.09–0.19 $/ft²) per year. Essentially, a second rent payment.
However, there are also many who are not skilled at DIY and need to hire expensive professionals for almost everything. Or simply don’t have the time or desire to take care of the house, even on weekends. This should not be underestimated. And such people are increasingly being forced to build due to market developments, as it can sometimes be an economically viable option—at least initially.
What many also forget is to set aside the necessary reserves for the house. Experts recommend 1-2 €/m² (approximately 0.09–0.19 $/ft²) per year. Essentially, a second rent payment.
Jean-Marc schrieb:
The best properties on the market are sold privately 99% of the time. Without contacts, there’s no chance.I want to jump in here—is that really the case? As a seller, wouldn’t you want to sell for the highest possible price, unless it stays within the family? That would usually mean going through a real estate agent and/or placing an advertisement in a weekly newspaper or online portal.
I don’t think that’s the case. Many sellers are older and want to leave their beloved home because it has become too big, or they need a change. Stairs, the garden become too demanding, etc. Often, the house is sold within the family or among acquaintances. The goal is to ensure the house goes to good hands. People want to see that life in and around the house continues. We sold our semi-detached house in 2016 to a cousin at a price estimated based on the market, without much negotiation. Could the price have been higher? We didn’t care; she is happy, we are happy, and our old house is in good hands—end of story. K.