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?
I don’t understand why you can’t simply deduct mortgage interest for tax purposes like in Scandinavia, as a form of retirement provision. You can claim every minor expense, every business kilometer, every liability insurance, but not the home loan interest. Unless it’s a rental property, then yes. Absurd. K.
C
chand198618 Apr 2019 14:35Nordlys schrieb:
but not the mortgage interest. Unless it’s a rental property, then yes. Absurd. K. I basically agree. The unequal treatment makes no sense.
However, I believe that due to bracket creep, the tax burden has already shifted downward for a long time. I would rather address this issue and fix this imbalance. But then, an average homeowner wouldn’t have much left to deduct – whereas a high earner with a large house could really benefit.
It would be better to make interest generally non-deductible and instead significantly raise tax allowances. That would also be preferable to all the child homebuyer subsidies, which are just cosmetic surgery on a seriously ill patient.
The construction child benefit primarily benefits buyers of existing properties in rural areas. It is likely to lead to further increases in construction costs, as homebuilders will try to pass on cost increases accordingly.
The challenge when building or buying a home for personal use for many families is that existing equity is tied up. Equity that would actually be sensible for retirement planning as well, for example invested long-term in stocks and ETFs.
Most homebuilders then no longer have enough money left to provide properly for retirement. Owning a home is nice, but rarely a truly suitable retirement provision, as there are also ongoing costs similar to a second rent.
The challenge when building or buying a home for personal use for many families is that existing equity is tied up. Equity that would actually be sensible for retirement planning as well, for example invested long-term in stocks and ETFs.
Most homebuilders then no longer have enough money left to provide properly for retirement. Owning a home is nice, but rarely a truly suitable retirement provision, as there are also ongoing costs similar to a second rent.