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.
nordanney schrieb:
No matter how you look at it, financially (in the long term) the owner will always be better off than the renter. However, building wealth through ownership in old age comes with a certain lack of flexibility. If you are only referring to the capital at retirement age, you might even be right.
But that’s not what I’m talking about.
I dare to doubt that Scrooge McDuck had a better overall life than Donald.
Farilo schrieb:
Rather, it should be pointed out that living comfortably without having fixed monthly costs of 5k is definitely possible.
An apartment for 1k at the Hamburg Fish Market is far from being a social housing unit. It’s primarily a lucky find that can’t be generalized. When I search on Immowelt, in Altona I don’t find any 3-room apartments with at least 80 m² (860 sq ft) for less than 1,200 rent excluding utilities; prices typically start well above 1,500. Rent excluding utilities!
And those are fixed costs, too.
Scout schrieb:
OK. Then do the calculation again for renting an apartment versus owning a condominium of a similar size.
Let’s say a loan of 400,000 with 100,000 equity, each for 100 m² (1,076 sq ft) and a maximum age of 20 years, located in the suburbs of the city of your choice.
The results will be similar.
Otherwise: a lifestyle choice doesn’t depend on whose name is on the land registry. Whether it’s your landlord’s or yours. It doesn’t really matter whether it’s a condominium, a single-family house, or something else.
For me personally, it’s about the loan amount I will need to take on.
My acceptable limit is simply reached much earlier than yours. That’s fine.
This debate can go on forever. If your limit is, for example, a 600k loan with a 6k monthly payment, the next person comes along and claims they can comfortably handle a 700k loan.
Scout schrieb:
It is primarily a stroke of luck that cannot be generalized. If I search on immowelt, for example, in Altona I won’t find a 3-room apartment ≥80 m² (860 ft²) for under 1200 euros cold rent, with prices typically well over 1500 euros. Cold rent!
And these are fixed costs as well. Take a look at the prices for cooperative housing... The rent I mentioned is not a one-off or just luck.
Another friend has been living for 2 years in a 2-room flat behind Max Brauer Allee (Altona) for 315 euros total rent including utilities and internet!
Of course, it could be that I only know lucky cases and you only unlucky ones. The truth probably lies somewhere in the middle.
As for asking prices... well, every new car is advertised at a certain price. EVERY ONE! Please name me a single person who ever paid the listed price for a car.
Sure, you have to search, dig deep, negotiate, etc... but it’s possible. If you’re looking for a 100 m² (1076 ft²) apartment with a view of the Elbe in Blankenese for 800 euros total rent, then you can search a long time...
Pamiko schrieb:
Some of the arguments here are really quite far-fetched.Honestly... you are basically saying that a savings account with 0.01% interest is a better investment because a stock fund can sometimes temporarily lose value.
Of course, there are certain risks when it comes to owner-occupied properties, but if you compare the monthly costs of new properties in the current economic situation (which was the original topic: "new construction with €7 cold rent")—and such a comparison is certainly possible—then there is a very high likelihood that owning property has an advantage. I don’t want to say more on that. My main intention is simply to give fellow forum members something to think about, since the path of renting temporarily until building your own home is, in many current economic scenarios, probably not the most economically efficient option.
With a net income of 6,000, you can already do quite a bit. It’s better to choose a lower mortgage repayment than to pay rent. That way, you can still live comfortably. The idea that a house must be fully paid off by retirement is nonsense. The renter has nothing, while I own half a house valued at 800,000 euros. So if I sell for 400,000 euros, the renter ends up with nothing. Which is better? It’s clear!