House prices

[SirChiko]

I agree about the EU part, here in out capital city an decent flat costs around 100k euros while average monthly payment is 300-1000.

Is EU more expensive in taxes then U.S? or about the same?

I'm not sure about living ones atm but we have 20% tax on every product in shops so...

[1715053632]

1715053632

[1715053632]

1715053632

[Justine]

Housing prices are based on predatory lending, aka our banks.

We cant buy or afford homes is due to when we our buying ability of dollar value by the time it gets to us, we have to pull out a loan which becomes a never ending cycle.

Cheap credit is largely the culprit.  If there was no sucker who was desperate to purchase the overvalued homes (such as young families), who would be buying the properties off the investors?

If you took cheap credit and mortgages out of real estate, prices would return to historical norm (equivalent to a few years' salary as opposed to decades in the status quo)

1) Young families are usually inexperience. There weren't the only group fall into buying overvalued homes.
2) High price also due to huge population increased in the last few decades.

[Justin00]

don't look in Australia.
they are bloooooooooody cheap. espeacilly if you want a good area.

I have a 2br apartment (own it... well the bank does.. but i will in 26 years lol!) in a great inner suburb area. its actually gone up quite  abit.
but yeah a house in this area is minimun $700k, for like a shack

[railzand]

Some great points raised here about ridiculous housing scams.

On a practical level, here's a good enough flat for you, op, while you train to crash planes: http://www.rightmove.co.uk/property-to-rent/property-29869875.html

You might also be able to get a career development loan if you're still short of cash after renting this gem. It's only a year...

[Harley997]

I have been looking to rent a house in Hampshire, but seriously it's really difficult to find a house for rent that is affordable unless you want to share the house with like at least 5 others.

It's pretty sick that as a member of the European Union it's nearly impossable to even afford to rent (not even own, rent) a home with a moderate wage. Not even a big home either, just a crappy 1 bed 1 bath type of home is already terribly expensive.

All this is the result of inflation.

Anyway if anyone has some tips on rental homes in Hampshire I'd like to hear. I prefer a house where I can live on my own, Altough I could also settle for a home together with one friend (seperate rooms).

I can't speak specifically regarding (New) Hampshire, but the most simply solution is to buy a smaller house.

It should be noted that buying a bigger house and having roommates can be beneficial as part of your mortgage payment goes to principle, reducing the amount you owe to the bank. If you receive enough from your roommates to pay extra towards your mortgage then you will pay off your loan quicker in exchange for a little bit less privacy.

Something else to take into consideration is the fact that you possibly (and generally do) have greater income the later you are in your career, so if you have roommates now, then in a few years you may make enough money to not have to have roommates.

[zimmah]

Thanks for the advice.

I think I'll rent a home together with a friend who currently lives in England. Better to share a home with ad friend than with strangers I guess.

But it is still pretty stupid that even in a wealthy country it's nearly impossable for a young adult to afford a place of his own. Food, clothing and shelter should be affordable for everyone. And right now it's not even affordable for the relatively wealthy (compared to the world).

[boumalo]

I agree about the EU part, here in out capital city an decent flat costs around 100k euros while average monthly payment is 300-1000.

Where are you living?

Slovakia...and i'm writing about starting prices of these flats.

Prices fell recently no? They are meant to go up as people get richer

[Harley997]

I agree about the EU part, here in out capital city an decent flat costs around 100k euros while average monthly payment is 300-1000.

Where are you living?

Slovakia...and i'm writing about starting prices of these flats.

Prices fell recently no? They are meant to go up as people get richer

That is not necessarily true. There are many places where people travel a great distance to work everyday.

[polynesia]

Cheap credit is largely the culprit.  If there was no sucker who was desperate to purchase the overvalued homes (such as young families), who would be buying the properties off the investors?

If you took cheap credit and mortgages out of real estate, prices would return to historical norm (equivalent to a few years' salary as opposed to decades in the status quo)

Credit is what makes the world go around. Rewarding borrowers. Punishing savers.
But if you do put brakes on cheap credit, you would have industry up in arms, Demand contraction and GDP going down...

[boumalo]

Cheap credit is largely the culprit.  If there was no sucker who was desperate to purchase the overvalued homes (such as young families), who would be buying the properties off the investors?

If you took cheap credit and mortgages out of real estate, prices would return to historical norm (equivalent to a few years' salary as opposed to decades in the status quo)

Credit is what makes the world go around. Rewarding borrowers. Punishing savers.
But if you do put brakes on cheap credit, you would have industry up in arms, Demand contraction and GDP going down...

If the credit is too cheap because it is fixed by the FED, it blows air into bubbles, we saw that in 2000 with the dotcom bubble then during the house bubble and now it seems it is the time of a USD bubble

[bitgeek]

I agree about the EU part, here in out capital city an decent flat costs around 100k euros while average monthly payment is 300-1000.

Is EU more expensive in taxes then U.S? or about the same?

I'm not sure about living ones atm but we have 20% tax on every product in shops so...

You didn't know this guys? We need to seriously educate you Americans about the hell that EU is.

In my country we have 18% income tax and 23%VAT, which means you have to pay tax every time you earn money and then again when you buy a product which equals 41%.

If you invest your money, e.g on a savings account you are taxed 19% of the income.

We also have excise tax, which is an additional tax imposed on some products like gasoline or alcohol.

One litre of gas costs almost $2, 1 litre of pure alcohol (spirits) $16.

Minimal monthly net wage is $400
Apartment prices 1m² = min $1600 which means a standard 50m flat costs $80000, which takes 16 years to earn on a minimal wage.

[Keyara]

Real estate and renting is the upper middle class' get quick rich scheme.  

This is how capitalism work. Buy essential products and rent it out.

[boumalo]

Real estate and renting is the upper middle class' get quick rich scheme.  

This is how capitalism work. Buy essential products and rent it out.

Free market is supposed to be about innovation, lowering prices and creation of wealth

[polynesia]

This is how capitalism work. Buy essential products and rent it out.

Think about it. If the people with money stayed away from buying houses, the builders won't be constructing houses.
At least now people are able to rent houses.

[Harley997]

This is how capitalism work. Buy essential products and rent it out.

Think about it. If the people with money stayed away from buying houses, the builders won't be constructing houses.
At least now people are able to rent houses.

If people avoided buying houses then prices would fall and rents would rise (those people would be renting). When the relationship between the cost to rent to the cost to buy a house then people/investors will come in and buy houses with the intention to rent them, causing house prices to rise and rents to fall (more supply)

[beetcoin]

Real estate and renting is the upper middle class' get quick rich scheme.  

This is how capitalism work. Buy essential products and rent it out.

yeah, but capitalism is also banks allowing subprime mortgages to people who cannot afford houses and too ignorant to balance their budget.

[shogdite]

Renting is expensive as hell, if I could afford a deposit I would defo buy a house.

[BitCoinNutJob]

It's pretty sick that as a member of the European Union it's nearly impossable to even afford to rent (not even own, rent) a home with a moderate wage. Not even a big home either, just a crappy 1 bed 1 bath type of home is already terribly expensive.

Have you tried getting a job?

The problem is even a decent job is barely enough to rent a shared student apartment. That's just ridiculous. It's close to impossable for a single person to rent a home on a regular income.

I need to live in Hampshire for my training to become air traffic controller, and during the training you get only £12.000 annually plus £60 per week for expenses. Now try finding a home for that price, while leaving yourself enough cash for food and clothes.

After I finished training wages would become better but even than housing would require a big cut out of my salary. It's just insane how a few decades ago you could buy a home for about 3 times your annual income and now you can barely even rent a home even when you spent your entire income on just rent.

Im looking at living in a motorhome or on a boat.  Fed up with renting, dont want to buy at these prices. 

If i was single i would just live in a converted van, the freedom and money saved is awesome - see youtube.

I rent a detached house now in a nice area and i will be glad to be rid of it.  High maintenance, high cost, rubbish.   

[beetcoin]

It's pretty sick that as a member of the European Union it's nearly impossable to even afford to rent (not even own, rent) a home with a moderate wage. Not even a big home either, just a crappy 1 bed 1 bath type of home is already terribly expensive.

Have you tried getting a job?

The problem is even a decent job is barely enough to rent a shared student apartment. That's just ridiculous. It's close to impossable for a single person to rent a home on a regular income.

I need to live in Hampshire for my training to become air traffic controller, and during the training you get only £12.000 annually plus £60 per week for expenses. Now try finding a home for that price, while leaving yourself enough cash for food and clothes.

After I finished training wages would become better but even than housing would require a big cut out of my salary. It's just insane how a few decades ago you could buy a home for about 3 times your annual income and now you can barely even rent a home even when you spent your entire income on just rent.

Im looking at living in a motorhome or on a boat.  Fed up with renting, dont want to buy at these prices. 

If i was single i would just live in a converted van, the freedom and money saved is awesome - see youtube.

I rent a detached house now in a nice area and i will be glad to be rid of it.  High maintenance, high cost, rubbish.   

yeah, motorhomes aren't even that bad.. it just has a bad reputation since people refer to them as "trailer trash." thes ones that i have seen weren't that bad really.

[BitCoinNutJob]

Where i live there are stop over locations for £5 per night (in really nice spots) no elect or water.  If you shop around you can find camp sites for £10 a night with elect and water included.

Its possibly a better way to live depending on where you are located, your work and if you have kids.