3 ms·
Real estate prices are insane probably partly due to ECB negative interest rates which make buying on credit very attractive. I read an article on HN last week
by petre 7y ago
Real estate prices are insane probably partly due to ECB negative interest rates which make buying on credit very attractive. I read an article on HN last week about zero interest 20y loans in Denmark. The DKK is pegged to the Euro.
https://news.ycombinator.com/item?id=20647651 https://news.ycombinator.com/item?id=20647651
Add to that all time lows (zero and below) for German bond yields which has bleak consequences for long time savers (future pensioners). Germany is a nation of savers.
Swiss 10y bonds are at -1%.
We are living in interesting times.
- thecleaner 7y agoSo what's a good strategy here ? Buy stuff on credit but sell to who ?
- petre 7y agoDunno, but normally it's not a great idea to buy real estate when prices are insane and property taxes are high. Also if you buy on credit the asset is the creditor's until you pay it off, so you can't sell.
- hef19898 7y agoNot in the case of real estate. There you might have to repay the outstanding debt immediately including any losses of the bank. Unless you manage to sell the financing along the real estate. For private persons, investors and developers are different I think in terms of credit conditions.