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20 years!? That's absurd. It never makes economic sense to tear down a house if you're paying for it (above the land value). It depends on building codes in yo

20 years!? That's absurd. It never makes economic sense to tear down a house if you're paying for it (above the land value). It depends on building codes in your area and such but my house is nearly 40 and it's not even close to end of life. Hell, the house I grew up in is still there and it's gotta be approaching 80.

mschuster91 4y ago
> It never makes economic sense to tear down a house if you're paying for it (above the land value). The land value is the key. Often, houses in the 50s-80s were built in what was suburbs or actual small villages back then, with enormous land surrounding them because land was cheap. Nowadays, the urban areas have grown and grown, and with them the desire for space for people to live on - even here in Europe, in Munich for example, land values exploded over the last 20-30 years. Think of like the land price not only doubling or tripling, but increasing tenfold or more since the houses were built. Say you have land with a house that was worth 50.000 $ when it was constructed... and now, the land alone can be worth millions. So you tear down the existing house that's in the middle of the plot, build four new houses on it, each one bigger than the old one, and sell three of the four houses to pay for your new home and a nice chunk of cash. Or you rent the houses out for absurd amounts of money and never have to work a day in your life again. And that happens not just with houses 50 years or older. Here in Munich, I've seen this happen with houses younger than me, simply because land values went up so immensely.
- freemint 4y ago
  20x in Munich? That is new to me.
  - mschuster91 4y ago
    It depends on the area, yes, but some areas like the Kaufingerstraße went up from 7721€/m² in 1980 to 80.000€ in 2012 [1]. In 2019, not even seven years later, the same area was worth 160.000€/m², and other areas also doubled in value over four years [2]. Munich is fucking expensive, I'm actually looking towards moving away entirely and save up to buy something when prices ever become reasonable. Forget about saving anything while living here - Munich drives away those who have been born here all the time. [1] https://www.sueddeutsche.de/muenchen/muenchner-milliardenspiel-so-teuer-ist-die-innenstadt-1.1978143 https://www.sueddeutsche.de/muenchen/muenchner-milliardenspi... [2] https://www.sueddeutsche.de/muenchen/muenchen-grundstueckspreis-immobilien-bodenrichtwert-1.4580410 https://www.sueddeutsche.de/muenchen/muenchen-grundstueckspr...

mschuster91 4y ago

> It never makes economic sense to tear down a house if you're paying for it (above the land value). The land value is the key. Often, houses in the 50s-80s were built in what was suburbs or actual small villages back then, with enormous land surrounding them because land was cheap. Nowadays, the urban areas have grown and grown, and with them the desire for space for people to live on - even here in Europe, in Munich for example, land values exploded over the last 20-30 years. Think of like the land price not only doubling or tripling, but increasing tenfold or more since the houses were built. Say you have land with a house that was worth 50.000 $ when it was constructed... and now, the land alone can be worth millions. So you tear down the existing house that's in the middle of the plot, build four new houses on it, each one bigger than the old one, and sell three of the four houses to pay for your new home and a nice chunk of cash. Or you rent the houses out for absurd amounts of money and never have to work a day in your life again. And that happens not just with houses 50 years or older. Here in Munich, I've seen this happen with houses younger than me, simply because land values went up so immensely.

freemint 4y ago
20x in Munich? That is new to me.
- mschuster91 4y ago
  It depends on the area, yes, but some areas like the Kaufingerstraße went up from 7721€/m² in 1980 to 80.000€ in 2012 [1]. In 2019, not even seven years later, the same area was worth 160.000€/m², and other areas also doubled in value over four years [2]. Munich is fucking expensive, I'm actually looking towards moving away entirely and save up to buy something when prices ever become reasonable. Forget about saving anything while living here - Munich drives away those who have been born here all the time. [1] https://www.sueddeutsche.de/muenchen/muenchner-milliardenspiel-so-teuer-ist-die-innenstadt-1.1978143 https://www.sueddeutsche.de/muenchen/muenchner-milliardenspi... [2] https://www.sueddeutsche.de/muenchen/muenchen-grundstueckspreis-immobilien-bodenrichtwert-1.4580410 https://www.sueddeutsche.de/muenchen/muenchen-grundstueckspr...