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.
I have doubts about the car. I own a 1996 Corsa B. Including the annual train pass, which is essential for my mobility, my monthly costs already add up to:
50€ for fuel (to the train station)
90€ for the annual pass
20€ for insurance
10€ for taxes
That’s already 170€ per month for the budget-conscious model. Anyone who has to commute even a little and drives a somewhat better car definitely pays more than the mentioned 200€ per month.
50€ for fuel (to the train station)
90€ for the annual pass
20€ for insurance
10€ for taxes
That’s already 170€ per month for the budget-conscious model. Anyone who has to commute even a little and drives a somewhat better car definitely pays more than the mentioned 200€ per month.
Tassimat schrieb:
An example regarding the car for me:
- New car 13,000€ calculated over 10 years: 108€/month.Hi Tassimat,ok, noted.
May I ask if your house cost 600,000€?
Or to put it another way... What was the amount of your mortgage (or loan)?
Because, generally, people who own a house valued at over half a million euros usually don’t buy a Dacia. (Whether I think that’s good, reasonable, or not doesn’t really matter at this point).
S
saralina8720 Nov 2019 16:28Farilo schrieb:
As mentioned above, I’m not trying to compare the villa with the social housing unit. I just want to point out that it’s really possible to live comfortably without having fixed monthly costs of 5k.
Sure, it’s possible to live very comfortably. Just ask the person whose property (our rental apartment) we are currently paying off.
But the main issue is actually a fundamental question that applies not only to houses but also to things like cars:
Do you want to lease and have an all-inclusive package, owning nothing at the end, or do you prefer to own what you ultimately pay for?
Do you want to “settle down” eventually and have everything as you imagine it, even if that means living more frugally for a while?
Can you live with the fact that the theoretical possibility of a termination is always looming, without having any way to prevent it?
Of course, rent levels logically depend on the region—for example, we live in a rural area and pay 850 euros (about $910) monthly rent excluding utilities for 85m² (915 sq ft).
N
nordanney20 Nov 2019 16:29Joedreck schrieb:
50€ for gasoline (to the train station)
90€ annual public transport pass
20€ insurance
10€ taxes
That's already 170€/month for the save save save model.
Anyone who has to commute even a little and drives a somewhat better car definitely pays more than the stated 200€/month. ... and you get part of the costs back through tax returns.
Farilo schrieb:
Hi Tassimat,
okay, noted.
May I ask if your house cost 600k?
Or put differently... How high was your mortgage?
Because, generally, people who own a house worth over half a million don't buy a Dacia. (Whether I think that's good/wise or not doesn't really matter for now).- House including additional purchase costs and renovation I currently estimate at 550k
- Equity was five figures
- Skoda Fabia estate
N
nordanney20 Nov 2019 16:35Farilo schrieb:
1) With a construction loan of 350k, you’re not that far off the figure I mentioned... (I did say that more than 300k "wouldn’t be wise").
2) The car costing 250 is another issue... Is it already paid off? Gas for free? Repairs never necessary? Someone else has detailed in other threads that an average yearly car usually costs around 500 EUR/month.
3) In my example, I assumed 2 children. You assumed one. (But your living costs for 3 are higher than mine for 4. Ok.)
4) Insurance at 200 seems a bit low to me. The house has to be insured. Then many have disability insurance and life insurance, legal protection, and a small additional health insurance (private room, etc.). And that for both. So, I would add at least another 150.
5) I consider savings/reserves part of the fixed costs. Let’s say 200.
That brings us to about + 550. I calculated 400 for the car instead of 250.
So a total of 4,150 fixed costs.
Vacation and so on are extra.I’m happy to adjust your figures. Ok. But then please do the same for the tenant as well. So are you trying to say that an average family can no longer afford even a cheap apartment? And again, who sleeps better (if I also increase the costs for the tenant, plus rent increases)? You still haven’t answered that question. According to you, the tenant would also have to sweat blood and tears because they can hardly afford their rent, let alone live well.You’ll have to agree with me on that one.
But in real life, it’s different. Why does everyone have to be overinsured? Why does everyone have to drive an expensive car? Why does everyone who builds a house have to save up immediately? And so on. It works, and life is good that way.