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EU is getting hit by a double-whammy. Higher interest rates increase the cost of the mortgage (especially since much of the continent is floating-rate), and at
by mellavora 4y ago
EU is getting hit by a double-whammy. Higher interest rates increase the cost of the mortgage (especially since much of the continent is floating-rate), and at the same time, higher energy costs are massively increasing the cost of ownership.
- egeozcan 4y agoThere are also a lot of people who built empires, renting out tens of flats bought on huge mortgages. They can't raise the rents too much, the law limits it, and a lot of them need to refinance after 10 years, which may crash the housing prices as they may have to pay more for the mortgage than they receive from the rent.
- rcMgD2BwE72F 4y ago>higher energy costs are massively increasing the cost of ownership. Why?
- inglor_cz 4y agoNot the OP, but I will bite. If you are buying a new house, most construction materials (bricks, concrete, steel, ceramics) require huge amounts of energy when produced and therefore are now more expensive than before. If you are buying an older house that needs renovation, you need to invest a lot more into insulation etc., lest your heating bills become terrible.
- inglor_cz 4y ago"higher energy costs" increase costs of everyone and everything: ownership, renting, producing anything, moving anything (except on foot or using a bicycle) etc. Modern civilization is extremely dependent on affordable energy.
- prottog 4y agoCivilization is really just higher-order consumption of energy per capita.