ᐅ Is the real estate market increasingly forcing families to build their own homes?
Created on: 6 Apr 2019 11:35
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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?
Well, let me break it down. Friends of ours live in Hamburg Rahlstedt in a 100 sqm (1,076 sq ft) condominium in an old villa. It comes with a courtyard, parking space, a carport, and a small lawn. It’s a good neighborhood—not the prestigious Elbchaussee, but also not the less desirable Barmbek Basch Habichtstrasse or even Jenfeld. The current value is certainly over 600,000 euros. If something like this hasn’t belonged to you for many years but you want to rent it—in the rare case you even find one—you have to expect rent of over 2,000 euros per month. That’s 24,000 per year, and even at a value of 600,000, this wouldn’t be considered an excessive yield.
And indeed, in Hamburg these rents are being paid, and such lofts rent out very quickly. If a family wants more comfortable housing, doesn’t have access to cooperative housing or prefers not to live in an apartment block, and doesn’t need to live close to the city but can manage commuting, then they look for a plot of land, for example towards Lübeck. They pay around 160,000 euros or even 200,000 euros for 500 sqm (5,382 sq ft), plan to spend at least 300,000 euros on the house, and so quickly end up spending around half a million in total. If they have some equity and repay well, they can be free of debt in 25–30 years. This is still cheaper than buying a good, well-located condominium like the one our friends have. The price to pay is the commuter lifestyle—with morning stop-and-go traffic at the Horner Kreisel, for example. Karsten
And indeed, in Hamburg these rents are being paid, and such lofts rent out very quickly. If a family wants more comfortable housing, doesn’t have access to cooperative housing or prefers not to live in an apartment block, and doesn’t need to live close to the city but can manage commuting, then they look for a plot of land, for example towards Lübeck. They pay around 160,000 euros or even 200,000 euros for 500 sqm (5,382 sq ft), plan to spend at least 300,000 euros on the house, and so quickly end up spending around half a million in total. If they have some equity and repay well, they can be free of debt in 25–30 years. This is still cheaper than buying a good, well-located condominium like the one our friends have. The price to pay is the commuter lifestyle—with morning stop-and-go traffic at the Horner Kreisel, for example. Karsten
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hampshire6 Apr 2019 23:08Niloa schrieb:
I don’t understand the question. It’s not just about the price, but also about the selection. The limited options often don’t meet the desired requirements. It’s not about being expensive either. The original poster simply can’t find anything suitable. Of course, no one is forced to build; that’s nonsense. Everyone is still responsible for their own needs and expectations.
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chand19867 Apr 2019 00:00I can’t help with that. But typically German is: “the market sets the price.”
Nothing stopped the government from building housing. Except the balanced budget policy and privatization. They could have created housing in large quantities and thus driven prices down. That wasn’t desired; it went against the lobby.
Well, now they have to deal with the mess.
Even in the Ruhr area, prices are steadily and surely rising.
Nothing stopped the government from building housing. Except the balanced budget policy and privatization. They could have created housing in large quantities and thus driven prices down. That wasn’t desired; it went against the lobby.
Well, now they have to deal with the mess.
Even in the Ruhr area, prices are steadily and surely rising.
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goalkeeper7 Apr 2019 01:31I can completely understand the original poster: we were also recently “forced” to deal with the topic of building a house. Older properties from around 10 years ago are selling for well above their original price—just last week, a semi-detached house built in 2011 sold here for over €600,000 plus a 4.76% broker fee and additional purchase-related costs. Nowadays, building is actually cheaper—but local authorities in these new development areas push prices up dramatically through absurd bidding procedures, sometimes reaching around €850 per square meter (around $79 per square foot). This has become unaffordable for an average family. We know many people among our friends who have been searching for land or houses for years without success.
@chand1986
It’s not just about balancing the budget. No one forced cities to sell their housing stock. The federal government alone is providing over 1.5 billion euros (approximately 1.6 billion USD) this year. Whether these funds are being fully utilized, I don’t know.
Often, funding from the federal or state governments is not claimed because, for example, the municipality cannot cover its share. It’s well known that Berlin does not have the money, and Munich also has a poor financial situation. If cities like Dresden sell their public housing, then who will build?
Private investors who can charge higher rents without subsidies and do not have to accept every tenant?
It’s not just about balancing the budget. No one forced cities to sell their housing stock. The federal government alone is providing over 1.5 billion euros (approximately 1.6 billion USD) this year. Whether these funds are being fully utilized, I don’t know.
Often, funding from the federal or state governments is not claimed because, for example, the municipality cannot cover its share. It’s well known that Berlin does not have the money, and Munich also has a poor financial situation. If cities like Dresden sell their public housing, then who will build?
Private investors who can charge higher rents without subsidies and do not have to accept every tenant?
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