Situation in the real estate market... madness

2019-11-20 16:26:33

I doubt the car. I have a 96 Corsa B. Including the [Jahreskarte Bahn], which is part of my mobility, I already spend monthly:

50€ gas (to the train station)
90€ [Jahreskarte]
20€ insurance
10€ taxes

That's already 170€/month for the save save save model.
Anyone who has to commute even a little and drives a somewhat better car definitely pays more than the quoted 200€/month.

2019-11-20 16:26:53

An example for the car for me: - New car €13,000 calculated over 10 years: €108/month.

Hi Tassimat, ok, noted. May I ask if your house cost 600k? Or to put it another way... How high was your loan? Because, as a rule, people who have a house worth over half a million don’t buy a Dacia. (Whether I find that good/sensible or whatever does not matter for now).

2019-11-20 16:28:04

As described above, I don't want to compare the villa with the social housing apartment.
Rather, I want to point out that it is really cool to live without having 5k monthly fixed costs.

Sure, it is really cool to live. Just ask the one whose property (our rental apartment) we are currently paying off.

But it is more about a fundamental question, which not only arises with the house but also, for example, with the car:
Do you want to lease, have an all-inclusive package, but in the end own nothing, or do you prefer to ultimately own what you have paid for?
Do I want to "arrive" someday and have everything the way I imagine it and live more frugally for a while to achieve that?
Can I live with the fact that the theoretical possibility of termination is always there, without me being able to prevent it?

Of course, the amount of rent logically plays a role regionally – just as an example: We live in the countryside and pay 850 euros cold for 85 sqm.

2019-11-20 16:29:59

50€ petrol (to the train station) 90€ annual ticket 20€ insurance 10€ taxes Already 170€/month for the save save save model. Anyone who has to commute even a little and drives a somewhat better car definitely pays more than the stated 200€/month.

... and you get part of the costs back from the taxes

2019-11-20 16:34:58

Hi Tassimat, ok, noted. May I ask if your house cost 600k? Or put differently... How high was your loan? Because, as a rule, people who have a house worth over half a million don't buy a Dacia. (Whether I find that good/sensible or not doesn't matter for now).

- House including purchase incidental costs and renovation I currently estimate at 550k - Equity was five-digit - Skoda Fabia station wagon

2019-11-20 16:35:07

1) With a 350k mortgage, you’re not that far off from the number I meant... (I did say that >300k "would not be smart"). 2) The car with 250 is another matter... Already paid off? Gas for free? Repairs never necessary? Someone here in other threads listed quite precisely how an average yearly car somehow always costs around 500EUR/month. 3) In my example I assumed 2 children. You assumed one. (But your living expenses for 3 are higher than mine for 4. Ok.) 4) 200 for insurance is a bit too little for me. The house must be insured. Then many have a disability insurance and life insurance, legal protection and a small supplementary health insurance (single room, etc). And that for both. So, I would add at least another 150,- there. 5) For me, reserves belong to fixed costs. Let’s say 200,- Then we are at about +550,-. I calculated the car at 400 instead of 250) So a total of 4,150,- fixed costs. Vacation etc still comes on top.

I’m happy to adjust your numbers. OK. But then please also for the tenant. So are you saying that an average family can no longer even afford a cheap apartment? And one more time the question. Who sleeps better (if I increase the costs for the tenant as well, plus rent increases). You haven’t answered that question yet. In your opinion, the tenant would also have to sweat blood and water, as he can hardly afford his rent, let alone live well. You will probably have to agree with me on that out of necessity. In real life, however, it looks different. Why does everyone have to be overinsured? Why does everyone have to drive an expensive car? Why does everyone who builds a house have to immediately build up reserves? Etc. It works and life is good with it.

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