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.
Bookstar schrieb:
The ECB is driving the currency into an even bigger crisis with each year it exists. The euro should have been dismantled during the Greek crisis. Now we are all just suffering the consequences of a failed system created by a handful of powerful figures, and I HOPE peace will nevertheless remain in Europe.
In the medium term, we will see negative interest rates ranging between -3% and -7%. This will also apply to private wealth starting from the very first euro. What this will do to the real estate bubble is better left to the imagination... I have many opinions on this topic, going in very different directions. Where do I even begin?
Well, what will happen in the next 5, 10, or 20 years is completely unclear. I consider -4% interest rates very unlikely, because the ECB, together with policymakers, can create new financial instruments that intervene with corrections in all directions. That is actually their central task: to fix everything the free market cannot manage on its own. Currently, insolvency of several Eurozone countries is being prevented. That’s quite a social measure.
And what is wrong with money becoming so "cheap" that everyone can get as much as they want? With a -4% key interest rate, you might even get a consumer loan for -1%. This is a very left-wing and provocative statement, but what’s wrong with it? For once, people who have nothing receive negative interest rates as a gift. A kind of taxation on the wealthy. I always find it amusing how in talk shows, pubs, or even here, there is an almost inherent expectation of guaranteed returns.
One thing I am quite sure about: there will be no huge crisis in the coming years. Neither the euro, nor Volkswagen, nor Germany as a business location will collapse.
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Hans-Maulwurf21 Nov 2019 16:01Well, then we can all be glad to have built a house now and to refinance "in the medium term" at -3%.
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hampshire21 Nov 2019 16:33Tassimat schrieb:
For once, people who have nothing receive negative interest rates as a gift. A taxation of the rich. If only that were true.
People with little tend to be tempted into increasing dependency by consuming more. Many praise the principle that the market regulates prices but forget that the market does not guarantee participation. People who have nothing still have nothing. They do not take part in the market.
A "rich" person does not live off income from work but from profits generated by investments and transactions. Low interest rates fit perfectly into the financial strategies of the wealthy—unless they are naive (and this kind of “naivety” is rare among the rich).
A middle-class individual who makes a living from their labor loses out in this game or turns to the capital markets with whatever remains.
The famous “gap” simply widens more quickly.
The situation in the real estate market illustrates this madness. — The thread’s title is quite fitting.
Yes, if the world chooses this path, it will become very interesting. It would be a modern form of serfdom. Inflation will reach unprecedented levels, and money will lose its importance for the private sector, serving only as an addictive tool to control the new, large lower class. A material parallel currency is very likely, as well as the breakup of the Eurozone countries. Politically, we would then be back to the level of the early 20th century.
I always enjoy imagining such apocalyptic scenarios.
I always enjoy imagining such apocalyptic scenarios.
If you take it further, all retirement plans and similar arrangements would no longer work, as they are designed for long terms with the goal of achieving the highest possible returns. Therefore, the average person's pension is at serious risk. From this perspective, private retirement provisions actually seem pointless.
I consider an interest rate increase very unlikely. That’s why we chose a fixed interest period of only 10 years back in 2017.
Personally, I think a breakup of the euro is… hmm, let’s just say unfavorable. The same goes for a breakup of the EU. Both actually ensure peace.
We just need to make sure that either the truly poor countries within the EU are not left behind, meaning a real community of solidarity is created.
Or the unwilling countries are removed. Then the EU should be equipped with genuine democracy and majority decisions should be allowed. The member states will have to give up sovereignty. This would then become a very tight confederation of states.
Personally, I think a breakup of the euro is… hmm, let’s just say unfavorable. The same goes for a breakup of the EU. Both actually ensure peace.
We just need to make sure that either the truly poor countries within the EU are not left behind, meaning a real community of solidarity is created.
Or the unwilling countries are removed. Then the EU should be equipped with genuine democracy and majority decisions should be allowed. The member states will have to give up sovereignty. This would then become a very tight confederation of states.