Situation in the real estate market... madness

When reading this, one wonders how a stereotypical family with a craftsman and a saleswoman can even survive without starving.

Presumably because they don’t spend 1000 euros on 2 cars and rather 700 instead of 1000 euros on food. And because they can’t pay 500 euros for savings and private pension like farilo. And also not 400 euros for other insurances, because there is no money for that. From the rest of the a little over 3000 euros net that remain for the two, one can also live—only they must not be thrown off course by an unexpected event like a disability insurance, because then it gets unpleasant.

If you read along here, you wonder how a stereotypical family with a craftsman and a saleswoman can even survive without starving.

The real drama is the less reflective demands we now place on our lives. Real estate prices reflect this just as much as household budgets. You can live very well with a beer-budget, just not in champagne style.

I like to write that everything was better in the past, whether that's true I don't know. But the fact is that with my parents only one person had to work and the house was bigger, well equipped, and we went on vacation. There were also new cars in the driveway. All no problem, and that with very high loan interest rates.

Fact 2: today, despite almost 0 interest, this is no longer possible. The main reason is the real estate market bubble and the low increase in wages. But the welfare state also costs money and wants to be paid for, with the needy not only being Germans as before but today the whole world.

Inefficient planning has turned the energy transition and infrastructure projects into a disaster.

But the German Michel leads discussions about cardboard cups and gender equality, watches Queen of Drags on the couch, and comfortably drinks his glass of wine or bottle of beer.

Life is beautiful, even without money.

I’m happy to write that everything was better in the past, although I don’t know if that’s true. But the fact is, with my parents only one person had to work and the house was larger, well equipped, and we went on vacation. There were also new cars in the driveway. All no problem—even with very high loan interest rates.

What you describe was not the norm in the past either. Your father apparently had a good job, or there was wealth acquired in other ways, or both.
My father had a good job and we four children each had our own room in the house, my mother did not work for money. I lived in a prosperous small town and was surprised as a child that there were people living in apartments, sharing children’s rooms, and vacationing in allotment gardens. That my upbringing was privileged I only understood very late and even later truly felt. This was and is not normal. What probably was different in West Germany until the 1980s compared to today was the widespread unwavering certainty of many people that times would always get better for everyone. That also made some act more boldly.

My comparison was of course with an identical starting position, i.e. the same amount of equity and equivalent earnings or job.

I still don’t understand that. Even if you give away €6k, €2k is for the house, there are still €4k left monthly. What financial worries could one have then? Even if only €3k remain, worries are unwarranted.

Then the average family with a €3.5k household income and €1k warm rent would have to lie down on the tracks every week because they are financially ruined. And even these "poor suckers" live a carefree and good life. If you’re just a "scaredy-cat," you’re in the wrong place here in the house-building forum. Because here write those "poor suckers" who want to buy a house or an apartment. What exactly is your fear?

Well, I already listed example calculations above. There you can clearly see how quickly the 5k get swallowed up. I am of course open to counter-calculations. Bring them on. I’d be happy to look at them and learn. (By the way, I wrote <6k. That means "under 6k". Just so you know).

Topic average family:

You speak from my heart. Thanks. This average family with a €3.5k household income lives a carefree and good life. Even in a rental apartment?! Crazy. And even in metropolitan areas like Hamburg? According to you, that can’t be! Rent there costs at least €1500?! And now they’re even flying on vacation? Intense. You are the ones who believe that a 170sqm house on 1000sqm land for €600k is a must because otherwise, it just doesn’t add up financially. You are basically forced to spend €600k because otherwise, you’d be stupid and lose money.

I am not a scaredy-cat. However, I am very happy about the fact that with this attitude at 38 years old I have a paid-off single-family house in Hamburg. I wish this sense of security to EVERYONE! That is why I always advocate that one should not unnecessarily plunge into enormous costs.

I know very well what added value an own single-family house has. I don’t want to miss it anymore either. I enjoy looking out the window every day and seeing the wild geese on the lake. I never want to give that up again.

But personally, I can only enjoy all that the way I do because I have already paid off the house. Would I enjoy it if I still owed €100k? Surely. If I still owed €120k? I think so. If I still owed €350k? Wow... That burden would hang over my head like a Damocles sword. It would be doable. All good. But for me personally, it would be anything but optimal. That is my personal attitude.

I’d rather drive a 2004 Golf that’s fully paid off than a Bentley that I still have to pay off for 10 years with 40% of my income.

With €6k net you cannot afford a house... where do you live?

Please quote me so I can see where I said that.

If by that statement you mean that I would find it extremely unwise to buy a shack for €600k with €100k equity while having, for example, €5k (among other things, that is <6k), then I agree with that.

Edit: You probably mean this statement:

And with <6k monthly, in my opinion, I’m sorry to say, you do not belong to those who can put up a shack for over half a million and live carefree (financially).

The emphasis here is on "CAREFREE." Unless you have a contract that guarantees you €6k until the end of your days. Then I take that back.

I even claim that in the current environment it’s better for your night’s sleep to have a pile of debt than to rack your brains over your investment strategy for your wealth.

Ok, that certainly says a lot about your attitude. It’s legit though. Each to their own. But then it also gets too tedious for me to explain my view to you. I respect your attitude and wish you much success with it.

When reading this here, one wonders how a stereotypical family with a craftsman and a saleswoman can survive at all without starving.

Quite simple: By not buying a €600k house.

Life is beautiful, even without money.

Right. And, just imagine, even without a €600k house.