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Same for Austria. Then considering that you might change jobs every few years... and the jobs are mostly in the cities, where you can't afford building a house.
by mto 10y ago
Same for Austria. Then considering that you might change jobs every few years... and the jobs are mostly in the cities, where you can't afford building a house.
We live in a small to medium size flat for 380€/month, including some running costs. Buying it would cost roughly 250k. That just doesn't pay off. Most medium sized houses are about 700k€ in the region, with typical software developer wages at 2-4k€/month before taxes. So 1.5-2.5k€ after taxes. Now go figure how long you will be in debt...
And of course, people are older nowadays when they start to earn.
For example, my parents started working with 16.
I visited a technical school up to age 19, had to do a year of civil/military service, then worked 2 years to save some money, then did a CS bachelor. A bachelor alone is "no real degree" here, so also doing an MSc. Working while studying to afford the studying prolonged the studies a bit.. and in the end I started with my first real OKish earnings at age 28 when I started with my PhD. So... yeah. At the bank they laughed at my income when asking for a loan for a flat.
- petra 10y agoSo what happens to people when they are old , and maybe they're pension isn't that good ?
- pjmlp 10y agoSadly they might land in the streets, if they don't have a family to support them. But this can also happen if you own a house, because there are running expenses for municipal taxes, validating the plumbing every X years, renewal of the boiler system before every winter starts, cleaning the snow or paying someone to do it....
- dnissley 10y agoTrue, but then you can sell it and potentially have enough money to live out the rest of your days (or a significant portion of them). There was a comment I read here recently about how a mortgage is in some ways a vehicle for forced savings. Not enough to retire on alone of course, but a big check if you ever need it.
- pjmlp 10y agoThe problem is that you need someone willing to buy it, and I can tell you that in the last couple of years that has been a very big issue to Portuguese and Spanish families, which cannot find any buyers.
- user5994461 10y agoInteresting. In France major cities outside Paris, I'd expect a 150-250k flat to be 600-800 euros/month in rent. If you pay only 380€ per month for rent, it's really not worth buying.
- mistermann 10y ago> We live in a small to medium size flat for 380€/month, including some running costs. Buying it would cost roughly 250k. Wow that's a pretty insane rent to purchase price ratio, seems not that dissimilar to Vancouver which is a gong show.
- andreasklinger 10y agomy guess: it's an old rent contracts and the newly-rent-value would be around 600