ᐅ The situation in the real estate market... unbelievable
Created on: 12 Nov 2019 18:29
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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.
guckuck2 schrieb:
The calculation only works as long as the numbers used are accurate. Obviously.
Two cars cost us about €400 (around $440), not €1000 (about $1100).
Childcare is €150 (around $165) for both, plus a bit extra for meals.
Insurance without a car is about €60 (around $66). Vehicle insurance is already included in the €400 (around $440) mentioned above.
Food for four, including drugstore items, is about €600 (around $660), no discounters.
So what now?
It’s just individual. But these numbers don’t make sense, or do you really believe them yourself?
guckuck2 schrieb:
The calculation only works as long as the numbers used are accurate. Obviously.
Two cars cost us around 400€ (about $430), not 1000€ (about $1,075).
Daycare 150€ (about $160) for both plus a little extra for meals.
Insurance without a car about 60€ (about $65). Car insurance is already included in the 400€ (about $430) above.
Food for four including drugstore items about 600€ (about $645), no discount stores.
So, what now?
It’s simply individual. Correct. It is individual.
That’s why I’m trying to find a common ground that doesn’t sound completely unrealistic.
My intended starting point was: a family with two children, a substantial amount of equity saved up (€100,000 (about $107,500)), so no paid-off car, living in a suburban commuter area, commuting 20km (about 12 miles), partially organic food, partially discount shopping, and occasionally eating out.
That sounds like a realistic family at first glance, doesn’t it?
If you also take into account that in many federal states daycare must be paid for in full, the outlook looks even bleaker.
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hampshire20 Nov 2019 16:17Bookstar schrieb:
Those numbers don’t make sense, do you really believe them yourself? I don’t see any flaw in the figures from @guckuck2.
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hampshire20 Nov 2019 16:22I am really a car enthusiast. Still, I am surprised by how much is spent here on car financing. A used car for commuting can cost 2-3 months’ salary (personal rule), so it's not a burden and doesn’t require large installments. A non-used car is a luxury. Does it really have to be an expensive car if it just feels a bit tight?
Bookstar schrieb:
But those numbers don’t make sense, do you really believe that yourself?I don’t find guckguck2’s numbers unrealistic. There are just some costs missing or allocated differently in other items. Just as an example: Someone who’s at work during lunchtime simply buys less food.
An example for my car:
- New car costing €13,000 (about $14,000) spread over 10 years: €108 (about $116) per month.
- Comprehensive insurance, liability insurance, and taxes: €50 (about $54) per month.
- Maintenance: €30 (about $32) per month.
- Fuel: €50 (about $54) per month.
Total: €240 (about $258) per month.
A used car with partial insurance would cost €200 (about $215) or less per month.
Tassimat schrieb:
The reason I can sleep easy is that the house is located in a sought-after area, the purchase price was low, and I can confidently sell the house without financial strain if necessary. Good point. I definitely accept that.
So, if someone earns less than 6k and can buy a house for 900k that is actually worth 1.5 million, then my reasoning can comfortably be ignored (Of course, that can go either way...)