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Are houses actually depreciating 1% per year in Germany? Most places houses are continuously increasing in price.
by rtkwe 3y ago
Are houses actually depreciating 1% per year in Germany? Most places houses are continuously increasing in price.
- dukeyukey 3y agoGermany builds about 250,000 net houses annually, but the German population is either stagnant or declining. So it wouldn't surprise me if German house prices are falling, or are definitely expected to over the coming decades. The median German is aged 48. In France it's about 42, in the UK 41, and in the US it's 38. And Germany's fertility rate is lower than all of them.
- hcurtiss 3y ago> the German population is either stagnant or declining Is that true? If yes, is that hurting government pension/retirement systems? That sounds like a disaster to me. That also means Germany is excluding immmigrants more than is popularly understood. * seems it’s a known problem: https://www.cnbc.com/2022/10/31/germanys-pension-system-will-collapse-without-reform-influential-lobby-group-says.html https://www.cnbc.com/2022/10/31/germanys-pension-system-will...
- soco 3y agoFrom what I understand (please correct me if I'm wrong) one of the points of Merkel's politics when encouraging immigration was exactly this - getting a younger workforce in, to restore the pyramid. Now some people say "immigration bad" but I didn't see any alternate solutions for fixing the pension system. I mean, there might be, but I haven't seen them.
- dukeyukey 3y agoThing is, immigration to Germany is quite high. It's just Germany is a populous country (more people than all of the US in and west of the Rockies!) with a _very_ low birth rate. So even when 17% of the German population are immigrants, the population is _still_ falling.
- FirmwareBurner 3y ago>but the German population is either stagnant or declining Migration has long outpaced the declining German population
- dukeyukey 3y agoIn this case I meant the population of people within Germany, not just ethnic Germans.
- FirmwareBurner 3y agoYes, for the whole country. The refugee waves from the middle east, Ukraine plus other migration has compensated the population drop in the last years.
- supertrope 3y agoThe land can appreciate if the area is desirable. Especially if local laws make it very difficult to build more. The structure always depreciates and maintenance must be done to offset it.
- hef19898 3y agoDeprecation on real estate is different from maintenance costa being spread out over time. Why do people always mix accounting rules for corporations, rules they don't understand, with private finacials? Heck, even professional real estate investors don't depreciate real estate values in thwir books, houses and appartments aren't cars or machines, they fall under the invesment category and are valuated at market rates...
- supertrope 3y agoCare to explain the difference?
- antisthenes 3y agoWhile the structure may deteriorate physically, it is not always a given that it depreciates in accounting terms. My US property was just hit with an increase in the building value to the tune of 25%, I assume to account for the increased labor/material/COVID inflation costs.