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I don’t understand this. Yes, houses are expensive, but so what? No one is paying that straight up front. You get a mortgage at record low interest rates and p

by xwdv 5y ago

I don’t understand this. Yes, houses are expensive, but so what? No one is paying that straight up front. You get a mortgage at record low interest rates and pay it off over the course of many years. The extra hundreds of thousands of dollars in price inflation amounts to what, a few hundred more dollars a month in mortgage payments? People need to get a grip. Renting is far more expensive. The real problem, is that people are getting shitty jobs and careers and expecting that will cover the lifestyle they want. And are also completely and utterly financially illiterate.

mistrial9 5y ago
the greater San Francisco Bay Area has had a provable shortage of close to 500,000 dwelling units since the 2000 era. source: California licensed urban planners you are not wrong about service-level jobs, but you are missing a lot on the availability topic. pre-built conclusions wont help in developing solutions to an undeniable problem of housing
cammikebrown 5y ago
Nobody seems to mention down payments. Even just 5% of a $600,000 home is $30,000.
- coolspot 5y ago
  And then you will have to pay 1.1% tax every year.
vlunkr 5y ago
This is only half the story. Yeah, you can get a mortgage easily, you just can't easily get the house you want, because everyone and their dog can also get a mortgage and bid against you.
standardUser 5y ago
"Renting is far more expensive." A person does not need $50,000 cash to move into a rental unit, let alone the cost of taxes, upkeep and maintenance.
- jjav 5y ago
  > A person does not need $50,000 cash to move into a rental unit The downpayment is indeed a hurdle to get into ownership. There are times/banks which will allow a much lower downpayment, though that has its risks. > let alone the cost of taxes, upkeep and maintenance The renter is of course paying for all of those, as the landlord is passing on all the costs and making a profit on top.
happyraul 5y ago
You seem to have a US-centric mindset. The article is specifically about EU prices. Renting, in Munich, Germany for example, is far less expensive than buying an equivalent home. Further, it is likely that the downpayment needed to take out a mortgage is significantly higher, percentage-wise, than the typical American mortgage, which also means people are paying more up front as prices continue to rise.
- akvadrako 5y ago
  That might be true in Germany, but in The Netherlands it's a cheaper to buy and the down payment is just a few percent for fees and taxes.

by xwdv 5y ago

mistrial9 5y ago

the greater San Francisco Bay Area has had a provable shortage of close to 500,000 dwelling units since the 2000 era. source: California licensed urban planners you are not wrong about service-level jobs, but you are missing a lot on the availability topic. pre-built conclusions wont help in developing solutions to an undeniable problem of housing

cammikebrown 5y ago

Nobody seems to mention down payments. Even just 5% of a $600,000 home is $30,000.

coolspot 5y ago
And then you will have to pay 1.1% tax every year.

vlunkr 5y ago

This is only half the story. Yeah, you can get a mortgage easily, you just can't easily get the house you want, because everyone and their dog can also get a mortgage and bid against you.

standardUser 5y ago

"Renting is far more expensive." A person does not need $50,000 cash to move into a rental unit, let alone the cost of taxes, upkeep and maintenance.

jjav 5y ago
> A person does not need $50,000 cash to move into a rental unit The downpayment is indeed a hurdle to get into ownership. There are times/banks which will allow a much lower downpayment, though that has its risks. > let alone the cost of taxes, upkeep and maintenance The renter is of course paying for all of those, as the landlord is passing on all the costs and making a profit on top.

happyraul 5y ago

You seem to have a US-centric mindset. The article is specifically about EU prices. Renting, in Munich, Germany for example, is far less expensive than buying an equivalent home. Further, it is likely that the downpayment needed to take out a mortgage is significantly higher, percentage-wise, than the typical American mortgage, which also means people are paying more up front as prices continue to rise.

akvadrako 5y ago
That might be true in Germany, but in The Netherlands it's a cheaper to buy and the down payment is just a few percent for fees and taxes.