ᐅ The situation in the real estate market... unbelievable
Created on: 12 Nov 2019 18:29
R
Reinhard84.2
Hello everyone,
We are currently looking for a property in the Lower Rhine region, which is not a particularly sought-after area, but unfortunately, the prices are not any better than in eastern Germany. When calling several real estate agents, they mentioned up to 50 viewings scheduled for one property. This was for a standard semi-detached house with a somewhat larger plot. I get the impression that as soon as a house has a garden bigger than a chicken coop, the interest is incredible.
Of course, the municipalities are not designating any new building land, as that would spoil the surroundings… (to what extent that is still possible is left to their imagination). This naturally has the convenient side effect that existing building plots and older properties are insanely expensive.
You can probably wait half a lifetime for the supposed recession, falling prices, and available properties. It’s all frustrating and a real pity.
Thanks for listening.
We are currently looking for a property in the Lower Rhine region, which is not a particularly sought-after area, but unfortunately, the prices are not any better than in eastern Germany. When calling several real estate agents, they mentioned up to 50 viewings scheduled for one property. This was for a standard semi-detached house with a somewhat larger plot. I get the impression that as soon as a house has a garden bigger than a chicken coop, the interest is incredible.
Of course, the municipalities are not designating any new building land, as that would spoil the surroundings… (to what extent that is still possible is left to their imagination). This naturally has the convenient side effect that existing building plots and older properties are insanely expensive.
You can probably wait half a lifetime for the supposed recession, falling prices, and available properties. It’s all frustrating and a real pity.
Thanks for listening.
Always this simplistic calculation.
You can’t compare monthly rent with a mortgage payment. That’s like comparing apples and oranges...
Who covers the cost of a broken heating system or roof repairs in a privately owned home? That’s just one of many reasons why the comparison falls short. Unfortunately, most people tend to think too simply and don’t consider enough factors. In this case: what do I pay monthly as a fixed cost for my apartment?
You can’t compare monthly rent with a mortgage payment. That’s like comparing apples and oranges...
Who covers the cost of a broken heating system or roof repairs in a privately owned home? That’s just one of many reasons why the comparison falls short. Unfortunately, most people tend to think too simply and don’t consider enough factors. In this case: what do I pay monthly as a fixed cost for my apartment?
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nordanney19 Nov 2019 23:14Pamiko schrieb:
Who pays for your broken heating system or roof repairs in your own home? You do, yourself, through the mortgage repayment—essentially forced savings. This is usually much more than what a renter would save. That’s why retirees who own their homes generally have a better situation than lifelong renters.
By the way, this is not just an offhand remark but has been proven. So, I’d rather pay for a major repair every 20 years or so and have no rent increases, resulting in a better quality of life during retirement.
With a condominium, you still end up paying the costly second rent, in a way. Somehow, you always pay for it. Also, you first need to be creditworthy. Paying rent works well with self-employed income, but getting a loan isn’t necessarily easy, and so on. We’re not discussing this for the first time.
I received everything I needed from my mom! It wasn’t financial support, but life experiences that I would never, ever want to miss out on. Moving abroad several times without much personal capital to various countries was the most valuable gift my mother could have given me.
Financially, I have built everything up on my own. I have actively created my own luck and then made use of it.
For me personally, what matters about a person is the journey they have been through, not where they currently are. Starting a movement is much harder than keeping a rolling stone in motion.
If someone inherits capital and makes something of it, that’s great. I’m happy for anyone in that situation. But to rank that person “higher” just because, for example, they inherited a house in Sylt, over someone who comes from a single-parent household with four siblings and a migration background living in a three-room apartment in a disadvantaged area of Duisburg and who has managed to get by with a clean two-room rental unit and completed vocational training—that doesn’t make sense to me.
Of course, no one here is putting anyone above anyone else. All users here are fair and impartial. But I think most people still understand what I mean…
On the topic:
The current market is simply disproportionate.
Some friends want to buy right now and occasionally ask me for my opinion. They’re shocked when I advise them against buying a home for more than 300,000 EUR (about 320,000 USD) under normal circumstances.
That is just my own honest opinion, which they asked for.
Recently, I visited an older gentleman in his condominium because I was viewing a car with a friend. This man had paid off his apartment over 35 years and now has to pay 340 EUR (about 360 USD) monthly in service charges. He owns the ground-floor unit, which he says is the largest of them all (about 90m² (970 sq ft)). However, things turned out differently than he expected. The other owners often decide differently than he would like, but he is simply outnumbered in his opinions.
It’s kind of unfortunate—paying off a place for 35 years and then still having to pay 340 EUR (about 360 USD) monthly to “improve,” “repair,” or “replace” things that he actually doesn’t want.
My conclusion: IF you rent an apartment, then only for rent. But that question doesn’t apply to me anymore, thankfully!
Financially, I have built everything up on my own. I have actively created my own luck and then made use of it.
For me personally, what matters about a person is the journey they have been through, not where they currently are. Starting a movement is much harder than keeping a rolling stone in motion.
If someone inherits capital and makes something of it, that’s great. I’m happy for anyone in that situation. But to rank that person “higher” just because, for example, they inherited a house in Sylt, over someone who comes from a single-parent household with four siblings and a migration background living in a three-room apartment in a disadvantaged area of Duisburg and who has managed to get by with a clean two-room rental unit and completed vocational training—that doesn’t make sense to me.
Of course, no one here is putting anyone above anyone else. All users here are fair and impartial. But I think most people still understand what I mean…
On the topic:
The current market is simply disproportionate.
Some friends want to buy right now and occasionally ask me for my opinion. They’re shocked when I advise them against buying a home for more than 300,000 EUR (about 320,000 USD) under normal circumstances.
That is just my own honest opinion, which they asked for.
Recently, I visited an older gentleman in his condominium because I was viewing a car with a friend. This man had paid off his apartment over 35 years and now has to pay 340 EUR (about 360 USD) monthly in service charges. He owns the ground-floor unit, which he says is the largest of them all (about 90m² (970 sq ft)). However, things turned out differently than he expected. The other owners often decide differently than he would like, but he is simply outnumbered in his opinions.
It’s kind of unfortunate—paying off a place for 35 years and then still having to pay 340 EUR (about 360 USD) monthly to “improve,” “repair,” or “replace” things that he actually doesn’t want.
My conclusion: IF you rent an apartment, then only for rent. But that question doesn’t apply to me anymore, thankfully!
Pamiko schrieb:
Unfortunately, most people tend to give too little thought and think too simply. Actually, I wanted to quote the part about the broken heating system, but I find this quote even better.
Still, I want to come back to the broken heating. In a new build, your repair risk is very limited during the first 5 years since it is within the warranty period. After that, the property will, of course, be sold again. At this point, I am personally quite glad that nowadays so many people tend to give too little thought and think too simply, because otherwise it would probably be much harder to take advantage of the current market situation in your favor.
The model I’m suggesting obviously doesn’t work if you end up with poor workmanship or need to move frequently, but in most other scenarios, you will likely have a five-figure financial advantage compared to renting.
Farilo schrieb:
On the topic:
The current market is simply disproportionate.
Some friends want to buy at the moment and occasionally ask me for my opinion. They are then shocked because I advise everyone, under normal circumstances, against buying a home for more than 300,000 (currency not specified).
But that is my own honest opinion, and they asked for it. How do you arrive at this very odd figure, and why do you base it solely on that?
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