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

2019-04-07 23:43:59

There is nothing to relativize here. Ten years ago, a single-family house cost only half as much as it does now. The interest rates are just a decimal place...

Of course, I don't know how it is for you, but for 90% of Germany, that's total nonsense. As if (with some exceptions) you could have built the same house for half the current price ten years ago. Mathematically, that's just as nonsense.

With the same annuity, the difference between 4% or 1% interest is anything but a decimal place. Unless you have 80% equity.

2019-04-08 08:30:43

In the USA, you have to calculate about 50% of the net household income for rent in cities. Here under 30%. In addition, living costs (except for gasoline) are more expensive, and education and illness have to be financed yourself.

In Berlin, you can live quite well for €10 cold rent. In D.C., you quickly end up at €40 cold rent. Regardless of the astonishment of the inhabitants of this country that living in one of the richest countries in the world actually costs money – and the ignorance that other strong countries are significantly more expensive, so we cannot speak of a bubble by any means – I find something surprising in the question of the OP: It implies that building is cheaper than buying.

2019-04-08 09:03:43

There is nothing to relativize here. Ten years ago, a single-family house cost only half as much as it does now. Interest rates are just a decimal place in comparison...

In combination with the interest rates, the relative monthly burden was similarly high even ten years ago. Whether now 30% or 40% of the monthly income goes towards a house is beside the point. People buy what they supposedly can afford.

Prices are still rising today. That shows me: people can and want to pay for it. Yes, the average property owner can still easily afford it. You have to come to terms with that.

It is a painful experience to admit that despite a middle income, you cannot afford the dream of a home. Complaining about the prices is easy, but additionally admitting that you have spent money on overpriced things like phones, holidays, and cars, or that the income is actually too low, is something very few manage. As wise people here have already said: you basically need income, equity, contacts, and luck. Those who have none of these won’t get a property either.

2019-04-08 09:05:37

She implies that building is cheaper than buying.

That can possibly be true. Certainly not across the board but in individual cases or specific regions quite possible. We ultimately decided to build a house ourselves because existing properties are currently offered at such high prices that, including necessary renovation/refurbishment costs, you very quickly reach the price level we will end up with for our new build. Since with existing properties (often half-timbered houses here) you can also experience nasty surprises with the structure, we preferred to opt for a new build. Of course, existing properties are often larger, but if you don’t need the size, it’s just unnecessary additional costs in purchase and maintenance.

2019-04-08 10:43:48

We also dealt with the question of converting a property into living space because the demand is simply high. The fact is that it is not worth it. Construction prices are so high that rents (in DD) cannot keep up for a long time.

So we thought that with the increasing demand the city might offer a subsidy so that it would be worthwhile. Nothing at all! All nonsense. No one receives a bit of support. Sure, you can build silos for losers with 15 years of rent control. And I deliberately say losers. Those who have done it, they shit in the elevator daily and everything is devastated. The landlords are just renovating. Pointless. As long as no one takes to the streets because of housing shortage, no one cares.

Besides, I agree with that this is complaining at a high level. Here in the East there is still plenty of space and building land. Not everyone can have a house on the outskirts of Munich or Cologne after all. So come here if a house with a garden is so important to you.

In general, my husband and I regularly argue about the question of whether the state is responsible for ensuring that everyone should have affordable housing in the big city. I say "No, unrealistic" - those who cannot pay have to live outside. He says "Yes" - housing is a basic right and the city must also provide something for the poor. So far, we have no solution.

Here I am torn!! Are low earners in public services such as tram drivers, nurses, social workers poor, losers, or just stupid to work in such professions?? It is crazy how high rents are rising in metropolitan areas and how such people are even forced to sacrifice quality of life by commuting.

2019-04-08 10:57:31

Are low earners in public services like tram drivers, nurses, social workers poor, losers, or just stupid for doing such jobs??

Was the question rhetorical? Low earners don’t earn so little because they perform poorly or are not intelligent, but because society simply doesn’t pay more for these services. As if we could do without them... and as if everyone could take care of children, the elderly, or the sick, while being intelligent enough to program (or collect the garbage, etc.). Low salaries for indispensable jobs combined with society’s withdrawal from housing construction. So the nurse just can’t afford to live there. How much of a loser, nice, smart, or naive she is plays no role in this.

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

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