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?
Jean-Marc schrieb:
It goes without saying that the savings on loan repayment should not be wasted on trips, cars, electronics, etc., if you plan to stay in the house after the 10 years.And this can certainly be a challenge for families. Consumerism is often very prominent nowadays...
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hampshire19 Apr 2019 18:14I am also familiar with the strategy of delaying mortgage repayment from the property market in England before 2009. The approach was to buy a small first home, get a 120% mortgage, live there for a few years without repaying the loan principal, and then sell it for a profit. Then, step up the “property ladder” by buying another house, this time with a smaller mortgage, and repeat the process once or twice until reaching the desired home. Only then would the mortgage be repaid.
Of course, this only works in a market with rising property prices. The financial crisis starting in autumn 2008 hit England hard and severely set back those trying to climb the “property ladder.” From a German perspective, people might say, “Look at those speculators” and point at the losers. However, the success stories among private households are often overlooked, and there were many of those as well.
Whether this approach is advisable—I have my doubts. At the very least, it is a different strategy.
Of course, this only works in a market with rising property prices. The financial crisis starting in autumn 2008 hit England hard and severely set back those trying to climb the “property ladder.” From a German perspective, people might say, “Look at those speculators” and point at the losers. However, the success stories among private households are often overlooked, and there were many of those as well.
Whether this approach is advisable—I have my doubts. At the very least, it is a different strategy.
From our traditionally conservative perspective on financial matters, these concerns are understandable. Similarly, the Danes probably wonder why young German families take on such high monthly payments right from the start, which they likely cannot maintain for long in case of a crisis (job loss, illness, separation, etc.)—if they manage to purchase a house at all given the high entry barriers.
The fact is: home ownership rate in Denmark is 62%. In Germany, it is 48%.
The fact is: home ownership rate in Denmark is 62%. In Germany, it is 48%.
The 62% figure does not result solely from the credit sector. Interest on debt can be considered as a deduction for the estate. Land and soil are less expensive, less densely populated, and there is more land available, with the exception of Copenhagen, particularly the suburbs along the Sound with beaches, known as the so-called Whiskey Society.
Construction itself is more affordable because buildings are simpler and often smaller.
Construction itself is more affordable because buildings are simpler and often smaller.
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wurmwichtel21 Apr 2019 13:05Jean-Marc schrieb:
...If some left-green activists think that CO2 is harmful to trees, that manufacturing the battery of an electric car is so much more environmentally friendly, or that the economic prosperity of an industrialized country (...) then I am more than happy to stand on the side of those accused of spreading only falsehoods or questioning 150 years of physics. Um... are you aware of what happens to people who grow too quickly? They often have problems with their bone structure and circulatory system. The same applies to trees under the influence of rising carbon dioxide levels. The rest of the quote clearly shows that you still haven’t understood what this is really about: maximizing profits, but let yourself be confidently driven by market radicals, against whom the FDP will look like the MLPD.