Does the real estate market increasingly force more families to build?

"...Many also say that money is better invested elsewhere.. Maybe, but how many actually know about the stock market or similar? I, for example, have no clue at all...."

It's really not rocket science. Monthly ETF savings plans on a broadly diversified index and/or dividend funds and that's it. This way you ride all the ups and downs of the stock market and get a long-term return of 6-8 percent per year. Without stress and hassle.

I believe you, but I simply have zero knowledge about it. And almost no one in my circle of acquaintances does either. So why doesn't everyone just do it?

The fundamental problem is that many things in house construction are considered standard, which are actually luxury. But: "You only build once." It's no wonder that houses keep getting more expensive. Just take a look at pictures of existing properties from the nineties. Then you can answer for yourself why prices were lower back then. It's not just the Energy Saving Ordinance and the price increase that are to blame. Nordlys has shown how you can still build affordably today.

How does that work? No real estate transfer tax for owner-occupied properties. In Denmark, you can deduct the interest on mortgage loans from your income tax. That really helps. Anyone paying off a house effectively pays hardly any taxes. The municipalities designate favored land, everyone does that. Why? Anyone who attracts a solvent new citizen really benefits from it, because the city treasurer receives more per new citizen than here. Copenhagen prefers to finance itself through the also very high indirect taxes, VAT, sugar tax, spirits tax, etc. But speculation and accumulation are rigorously prevented. Whoever does not build loses the land again. Anyone who wants a second home by the sea must be in a summer house area; if they do that in a normal single-family house neighborhood, they will be expropriated again. The rules there are quite strict and they enforce them.

And in Denmark, as a non-Dane, you cannot simply buy something either. This is how they keep a speculative bubble small.

"I believe you, but I have absolutely zero knowledge about it. And almost nobody in my circle of acquaintances does. So why doesn’t everyone just do it?" Because Germany is not a traditional investor country. Here, savings books, unprofitable life insurance policies, and daily allowances are still deeply ingrained in people's minds. Stocks are considered highly risky, so you have to keep your hands off them. Banks and insurance companies make money from this fear. Some investors also recall the Telekom or the New Market that went bust.

You don’t have to be a professional at all. Many think that you need a lot of knowledge for a worthwhile investment in stocks and that you have to regularly invest a lot of time. Especially with an investment focus on low-cost index funds or ETFs, neither much knowledge nor time is required to sensibly invest money in the stock market.

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It's really not rocket science. Monthly ETF savings plans on a broadly diversified index and/or dividend funds, and that's it. This way, you go through all the ups and downs of the stock market and achieve a long-term return of 6-8 percent per year. Without stress and hassle.

But that doesn't make you any happier, because you still don't have a house, and taking money to the grave only makes sense if you are aiming for hell.

Actually, we would like to do without building. Unfortunately, existing properties within a 20 km radius have become quite expensive, and affordable rental houses with small gardens are simply scarce.

20 km is also a somewhat ridiculous radius, says someone who commuted for 15 years from the suburbs to the city (= 35 km) and invested half an hour one way in travel time. That was normal, not long, not bad. That can be expected of every main earner. For someone earning €450 a month, that is disproportionate and in my opinion not expected.

As a latecomer and thus a silent reader here, I have to smile at statements that house construction supposedly cost only half as much 10 years ago and that a hairdresser with €2300 gross plus taxable tips ends up with €2000 net. Well then.

More or less, I can agree with the opinions that people are greedy. (K+K)
Whether it concerns the standard of the house (house under 160 sqm, children’s bathroom, rain shower, and a masonry double garage) is social housing, the location (cheap building land in the city, but please traffic-calmed) or if one distances oneself from a single-family house or semi-detached house, possibly only divided into owner-occupied flats, it is increasing considerably.

My first building loan ran at over 6%, at those times the lower-earning married woman had to bring in extra money in the evening with a side job in addition to her part-time job.
Building was cheaper than today, but salaries also did not stand still during that time.

I am of the opinion that very many could adapt very well to their environment if they wanted to. A big city dweller who earns double or even triple what a bus driver from Friedrichskroog earns does not have to dream of the same living environment. Or vice versa.
Likewise, out-of-home childcare in the city is better than in the countryside, where the woman and mother can rather stay at home because building a house is cheaper there. Somehow, they could all be happy if it weren’t for greed or envy. I know, not everyone is like that. We humans just like to keep up. Whoever is diligent should also be able to make the most of it and be able to choose.
But somehow, humans always remain dissatisfied. That applied to the 35-hour workweek, as well as parental leave.
And when everything fits, you ask yourself why the colleague actually drives a more expensive car or how the neighbor finances his many holidays.
Nowadays, people catapult themselves out of the middle class downwards if they don’t go along with iPhone, Weber grill, TM, or Audi. (Of course, there are also the parallel brands that are considered insider tips ) Anyone who still travels to Turkey now cannot afford a decent vacation. We put pressure on ourselves. Those who manage to be at peace with themselves are to be admired. My opinion.

"But that doesn’t make you any happier either, because you still don’t have a house, and taking money to the grave only makes sense if you’re aiming for hell."

And in old age, I’ll be eating the roof tiles because the meager pension isn’t enough to pay for the necessary repairs. Many underestimate the costs of maintaining a house. You only realize that over the years as the building gets older. Owning a home is rarely a profitable thing; no amount of wishful thinking helps there.

"20 km is also a somewhat ridiculous radius, says someone who drove from the suburbs to the city (= 35km) for 15 years and invested half an hour of one-way travel time for it."

Mobility is expensive. And especially in rural areas, you often need a second car. Or the kids also need one to get to their training.