Sydney Mortgages Higher Than London or New York
#91
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Re: Sydney Mortgages Higher Than London or New York
And irrational rich Germans at that! Apparently.
I wonder what sort of return they're getting. Poor loves must be losing billions in lost opportunity.
Transfer taxes and costs in Germany are high and I think there is a tax you if you sell within a certain amount of time. These create drag on a market (which is not always a bad thing - especially in times of exuberance).
I wonder what sort of return they're getting. Poor loves must be losing billions in lost opportunity.
Transfer taxes and costs in Germany are high and I think there is a tax you if you sell within a certain amount of time. These create drag on a market (which is not always a bad thing - especially in times of exuberance).
#92
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Re: Sydney Mortgages Higher Than London or New York
no, they are not more rational, they don't like to take risks and they are worried to death that they lose their property in case they loose their job. Germans are very grounded people, they tend to buy ONE property in their life and they like to stick with the same job/company until they retire. But that is changing. I'm original from Germany, although I owned my own property, as you say, the majority of people rents. Germans have few children, like to spend their money on themselves, eg car (Merc, BMW, Audi) and holidays. The pension system is differently too which is part of their calculation. Properties are very much cheaper than in OZ and mortgage rates are very much lower too.
#93
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Re: Sydney Mortgages Higher Than London or New York
How's that breakeven for rental versus mortgage going for you?
#94
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Re: Sydney Mortgages Higher Than London or New York
Fantastic. I retired 4 years before my planned retirement date and I have no mortgages or debts any more. How's it going for you?
#95
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Re: Sydney Mortgages Higher Than London or New York
It's going great for me. I have a large pot of capital and high disposable income. Freedom is great.
Last edited by Steve2009; Oct 12th 2010 at 5:30 am.
#96
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Re: Sydney Mortgages Higher Than London or New York
Great. How's it going for you?
#97
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Re: Sydney Mortgages Higher Than London or New York
I don't know. You suggested that German renters were rational. That would make German non-renters non-rational. Unless everyone is rational. In which case why did you use that qualifier?
Fantastic. I retired 4 years before my planned retirement date and I have no mortgages or debts any more. How's it going for you?
Fantastic. I retired 4 years before my planned retirement date and I have no mortgages or debts any more. How's it going for you?
#98
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Re: Sydney Mortgages Higher Than London or New York
The yields offered by German housing make them an attractive low risk investment. The gap between the cost of renting and buying is probably not as pronounced and people can make the choice based on their own circumstances.
#99
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Re: Sydney Mortgages Higher Than London or New York
It brings up an interesting point in that rents were lower than mortgages then. So was it rational to buy at that time? The other interesting thing about that time was that although the house prices crashed by something like 30% rents continued to rise.
#101
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Re: Sydney Mortgages Higher Than London or New York
I'll let you work it out.
#103
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Re: Sydney Mortgages Higher Than London or New York
I'll help you out maybe.
People do not rent when it's hugely cheaper in Australia because the market is irrational. Lots of people rent in Germany and there is not such an irrational attachment to ownership. Germany is perhaps therefore a more rational market.
This does not in any way suggest that German home owners or investors are irrational.
How does your 7 year breakeven apply to current market prices? I'd love to see your model.
People do not rent when it's hugely cheaper in Australia because the market is irrational. Lots of people rent in Germany and there is not such an irrational attachment to ownership. Germany is perhaps therefore a more rational market.
This does not in any way suggest that German home owners or investors are irrational.
How does your 7 year breakeven apply to current market prices? I'd love to see your model.
#104
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Re: Sydney Mortgages Higher Than London or New York
I'll help you out maybe.
People do not rent when it's hugely cheaper in Australia because the market is irrational. Lots of people rent in Germany and there is not such an irrational attachment to ownership. Germany is perhaps therefore a more rational market.
This does not in any way suggest that German home owners or investors are irrational.
How does your 7 year breakeven apply to current market prices? I'd love to see your model.
People do not rent when it's hugely cheaper in Australia because the market is irrational. Lots of people rent in Germany and there is not such an irrational attachment to ownership. Germany is perhaps therefore a more rational market.
This does not in any way suggest that German home owners or investors are irrational.
How does your 7 year breakeven apply to current market prices? I'd love to see your model.
For Ireland as per original response? I'll get it to you when I've finished it.