Home financing ever possible? Probably not!

My father still knew the 45-hour week. Every other Saturday in the office. Well, I often work 50 hours a week, but I get paid for 13 of those as overtime, including bonuses.

My father still knew the 45-hour week. Every second Saturday at the office.
Well, I often work 50 hours per week, but I get 13 of those paid as overtime, including bonuses.

You can calculate it: How much more do you earn than your father at your age per hour(!), what does that make in %/year calculated over the age difference to your father? Compound interest calculation, of course.

Then you know the gross purchasing power gain. All excluding cold progression (negative effect) as well as the new technology that is available today (positive effect).

my parents: 250-year-old house (in family ownership since then), initially heated and cooked with coal! Many rooms still rather cool than overheated. Father (master tailor, one of the lowest paid professions) commuting by bus to work from 8:00 am to 8:00 pm, rarely using his own car (first car Volkswagen Beetle, then Opel Kadett), later mostly with a car (co-)pool. My mother was a childcare worker, later also a seamstress. Housewife and necessary family accountant! Both often did homework (sewing) in the evening. The house was in need of renovation everywhere. Black-and-white TV later than others. Much of the work was done by ourselves or family, unfortunately rudimentary and unprofessional. Own garden 150m away. Growing food like potatoes, beans, strawberries, etc. + many rabbits in the hut for "inside pot and on the plate." But we were mostly a very happy family, spent many holidays in the heath, Baltic Sea, etc. NEVER any long-distance or even air travel! That was definitely not possible. Traveling abroad only later with self-earned money or student exchange programs. And now? Brother is Prof. Dr. and Dipl. Ing., sister has a very well-paid job and I am the low earner of the three! But I just ordered a Tesla and can pay for it from my account ;-) Everyone owns (at least) a house in good to very good condition plus condominium(s). We can all buy food only in genuine ORGANIC QUALITY without thinking, eat out without worrying about money. And my daughter is doing even better! How will her (three) children be ... better or worse? Guess ...

How long did people use a TV in the past? What did a refrigerator, a car cost, how long were they used? What did the one telephone connection cost, what about the vacation, what food was put on the table. How often did children get new bicycles, clothes? How many presents were there? Who cut the hair and what was paid for it? How many cosmetics were in the bathroom? How often was home decor bought? If you lived today like our parents did, you would have significantly more surplus.

I don't see it that way with us... Actually everything is similar, except that we need 2 cars because we both have to work to be able to afford a house at all. Existing property. As I said, smaller, not luxurious or anything.

Exactly. In the past, people didn’t go out to eat every other day or order from delivery services, didn’t go on vacation 4 times a year, or go shopping every week and buy new furniture (sofa, etc.) every 10 years. I don’t want to judge, but we are quite a consumer society. The 60+ generation mostly built their houses themselves. Sometimes it took 3 years or more. They pitched in on the construction site every weekend. Today, with similar incomes and a much flashier lifestyle, the expectation is to build a turnkey house in 3 months without lifting a finger or changing one’s consumption habits. You just have to bear the consequences if you decide one way or the other.

In the past, people didn't go out to eat every other day or order something from delivery service, didn't go on vacation four times a year or go shopping every week and buy new furniture (sofa, etc.) every 10 years.

Somehow, that's not the case in my bubble today either. Hmm.