r/funny May 04 '21

But i like what i have okay?

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748

u/Mainzerize May 04 '21 edited May 04 '21

German, born and raised in the region around Frankfurt. If I want to find a house below 300k, I either have to drive for over an hour to get to work or spend another 100k to actually live in the place.

Edit: just to get it out there after reading some comments. First of all, I was talking euros, I think that matters. As well, if you find a place below 300k, this is by far not even close to your mentioned 1500 sq feet in a good shape with house and garden. 300k gets you something with around 900 sq feet, 100 years old in terrible condition in a town with a population of about 500 and an hour by car into the city.

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u/Raz0rking May 04 '21

Lucky you. Go a bit to the northwest (Luxembourg) and you will be hard pressed to find a decent appartement under 600k

My best mate bought one 64m² for 600 and something.

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u/Mainzerize May 04 '21

We should just gamble and buy the worst dumpster we can find and wait it out. It'll become a metropolitan area in our lifetime anyway.

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u/Raz0rking May 04 '21

Housing prices go up at least 10% each year. Last year was 17%.

I have pretty much given up owning property myself outside of inheritance or winning the lottery.

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u/clanddev May 04 '21

I bought a house in 2010 for 69k 1200 sqft 3 bedroom. Rolled that profit into a 215k 2400 sqft 4 bedroom house in a more desirable area in 2012. Rolled that profit into a 2400 sqft 4 bedroom that is split into a main house and one bedroom apt in 2015 for 298k. It is currently valued at 450k.

I was very lucky with the timing but I specifically bought the last one with the attached apartment because I think one day the only place my kids will be able to live is in the house I leave them. I mean if this trend continues a starter home in any metro city is going to be a million dollars by the time they enter the work force.

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u/derektwerd May 04 '21

Germany has very severe taxes if you sell a house less than 10 years after buying it.

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u/clanddev May 04 '21

We actually had a tax issue on the first sale. We took the first time home buyers tax credit offered by the US Federal Government as an incentive for buying a home after the 2008 crash. It required three years from purchase date to sale or you had to repay the tax credit.

Other than that I am not aware of any sales restrictions in the US other than the home being one's primary residence. I believe there are tax implications for selling non primary residence properties. I am not an expert on the subject though and US laws vary.

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u/WaterGruffalo May 04 '21

You just described the recipe though. The moral of the story is just get into a house that you can get a loan on, wait till it appreciates, then move up. This is how it’s always worked, especially post 2008 financial crisis. Homes will correct again, sure. But maybe only 15% of some future valuation. Moral of the story, if you want to own a house, get in as soon as feasibly (and financially) possible. Waiting for a 20% down payment is a pipe dream now.

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u/Unitedite May 04 '21

Eh, it doesn't quite work like that. A generally buoyant housing market doesn't help people wanting to move to a more expensive house.

If you buy a starter home for 200k and house prices increase by 10% then you might have 'made' 20k, but that house you were looking to move on to that was 300k is now 330k, meaning you're in a worse place than when you started.

Buying a house helps if a) you can get a mortgage for less than you'd be paying in rent b) you gamble and get lucky with above-average price rises, or c) you make improvements that increase the value of the house - in which case you're essentially being paid for your labour. But a general increase in house prices is still a bad thing for anyone looking to move to a more expensive house.

(Of course, it's easier to own a small house that is appreciating than still be paying rent, I don't disagree with your conclusion.)

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u/WaterGruffalo May 04 '21

Yes, there’s obvious nuance with my comment, specifically to you needing to take out a bigger mortgage (ie. More debt) each time. However, your example proves my point. If you made $20k on the first house, even though next house went up by $30k during that time, that’s $20k you didn’t have to throw at it. While renting, maybe you could have only saved $10k. I could even use my own home as an example of buying for $250k in 2016, then selling for $400k in 2019 and buying another house for $550k (California). These homes were going to appreciate this fast whether I owned or not. But I basically gave myself the ability to buy my current home. Again, this might not always be the case and I never recommend people being house poor. But also never be scared to bet on yourself that you’ll be able to make more money and reach for home ownership sooner if can make it work. But that’s for people who want to own a home and understand what homeownership entails (all the hidden costs).

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u/Unitedite May 04 '21

I agreed with you that it's easier to buy a house if you're already on the ladder. But house prices increasing is not a good thing for people looking to 'trade up' to a nicer house - it would be much easier if the market was crashing.

In your example, if your house price increase was fairly standard then you'd have been able to move to a much nicer house if prices had dropped by 10% than you were with the 60% increase.

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u/WaterGruffalo May 04 '21

Unfortunately I’ve never been in a position to buy a home where I’ve seen home prices depreciate from one year to the next. Moral of the story is that if you want to buy a home, just buy one that makes sense for you and don’t try and time it. Believe me, I’m hoping for a housing discount on the next house. I hope to keep and rent my current one and just buy low for the next.

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u/HexagonSun7036 May 04 '21

This happened to the area my family is from (Northern VA) and had lived for roughly 180 years since we all got here from Italy and some ancestors from one or two other places arrived a lot earlier.

Me and my grandmother were the last ones and we got priced out/pushed out at the same time. 180 years, forced out by monied people wringing people dry or kicking them out. I miss my homeland/hometown. Maybe one day we can have it back.

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u/SayWhatIWant-Account May 05 '21

I think one day the only place my kids will be able to live is in the house I leave them

Really smart by you but damn if that doesn't suck for everyone else in the future.

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u/Mainzerize May 04 '21

I saw a house the other day, one million and 3 parties who currently rent the apartments. They could pay off the loan but I'd pay it off for like 35 years, unfortunately..

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u/Marko343 May 04 '21

Also while everyone always says "just need to save up and cut out what you don't need!" You know I assume most of us would like to also enjoy our lives a little in the meantime as well. Spending 5 years doing relatively nothing besides working and eating ramen at home to maybe afford a house in your 20's isn't exactly a fun prospect.

I'm pretty fortunate and was trying to buy a house this summer before finding out I have a kid on the way. I don't feel like paying over asking price and anything remotely liveable has a offer within days being bought almost sight unseen.

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u/Raz0rking May 05 '21

The price increase outpaces my ability to save up by a factor of 10 or so.

I am realisticly able to save about 6k per year. While the price of a decent apartment goes up 60k a year.

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u/LethalMindNinja May 04 '21

Rather than giving up on owning a property you should give up on buying a property exactly where you want. Or give up on what you think is reasonable to purchase. The average home in the US is over twice the size of most other countries including 1st world countries. Our generation seems to look at 4 bedroom 2 bath houses and just give up and say they can't afford that. They consider it the bare minimum. Find something smaller or even a condo and build up from there. Choose somewhere with more accessible opportunity and build your wealth from that. In just a few years of building equity in something like that you'll be able to buy something bigger. 9/10 times you'll be paying the same amount on a mortgage as you would for rent anyways. Especially if you can get a 2 bedroom and rent one room out to help build wealth even faster. I was born and raised in a ski town and had to make the same decision. Do i stay there and complain about how i'll never be able to afford it or do I go grow my wealth somewhere else and return when i can.

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u/adequatefishtacos May 04 '21

This sentiment will always be down voted on reddit. It's true though, especially when the market is at all time highs.

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u/LethalMindNinja May 04 '21

Most people would unfortunately rather have the excuse to give up because they're told it's impossible rather than put in the work and look at ways to overcome it.

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u/ambsdorf825 May 04 '21

Yeah, I live in a van and don't see being able to afford to change that anytime soon.

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u/flyingmops May 04 '21

The camp site in my village, used to give out land instead of salaries 40 or so years ago, those lands are worth millions now.

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u/jalif May 04 '21

In the centre of Sydney bids start at 500k.

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u/Forzeev May 05 '21

Well , there is a lot more people in 50-70 age group than 30 to 50. People makes less kids nowdays. For example in Europe population is Declining.