Why does much of Europe have a renting culture? So far as I can see, rent is a complete and substantial loss, while paying a mortgage is putting money into something that eventually becomes yours.
t. 30y/o bong looking at buying a house and looking at the cheapest parts of the country :(((
I dunno, I have a mortgage on my condo.
wealth concentrates and being a landlord is a very easy passive income stream
Britain is obsessed with home ownership. It’s quite unhealthy but the only way to get out of it is to own a home lol
I don't see how it's unreasonable though - the difference in price of renting vs mortgage is about the same, so it doesn't make sense to keep renting.
from what I've heard, people are struggling to get approved for mortgages even though they are paying rent with no problem. idk though because mummy and daddy helped me get on the ladder.
We just need to put a massive tax on renting and cap renting prices so that the landlords barely make any profit making renting empires less attractive, that plus no more immigrants so no population growth and more houses to go around. And just like that the housing crisis solved. But the British parliament wouldn’t want that.
literally everyone owns a home, even the most uneducated blue collars do, and a lot own a villa as well.
You usually get a mortgage at 30ish to buy your family home and then inherit a villa and/or another house from your parents
some european countries have insane rental laws that make it difficult to evict tenants on a whim (so long as the tenant is paying rent). this offers the potential to have a long term rental.
the Rent Act 1977 offered something similar here in the UK but they were abolished in 1988 because the rents were set by the local administration and effectively granted a lifetime tenancy to certain tenants.
the majority of tenancies in the UK are assured shorthold tenancies. they're usually issued on a yearly basis, but tenants can be evicted after the sixth month by issuing a section 21 notice, which gives the tenants 1 month to vacate the property.
also you can't compare a landlord to a bank or lending institution. the bank is often committing to a 20+ year agreement whereas the landlord faces a much smaller liability when signing a contract with a renter.
First of all, you need to get approved for the loan. Good luck getting one if you work the cash register or have an occupation with volatile monthly earnings.
Also, what you've said applies to times when interest rates were at record lows. The way the world is going down the shitter, you can forget about those for the next decade.
Its almost imposible to get evicted here and everything has to be done through court. Which I am very thankful of, I have had 4 different landlords in 6 years and all of them were terible people
Your landowners are more entrenched and historic. Every corner of your country has been bought for centuries now and things are highly developed. The common people have been renters for a long time.
In the US there was a huge drive to expand throughout the new country and hand out land to everyone who wanted it.
black line is buying price evolution
blue line is renting price evolution
boomer death can't come soon enough
There are many variables that should be examined before deciding rent or ownership. Generally, places with expensive real estate, you should rent. But mortgages at the moment have a benefit of allowing you to leverage low interest loans so that is very good if you want to free up capital to invest. The other questions like location and quality of the building are really subjective.
germans rent, eastern euros own shitty little houses/flats
There is a hard limit of how much you can borrow, which is around 4.5x your salary (you can get up to around 5.5x but only in special cases). It is to stop a crash like 2008 happening again. Now google average house prices and average salary and you see the problem...
I cant imagine settling down in one place for 30 years
what makes you think you have to do that just because you own it?
in poland you dont even need to pay the rent lmao. the tenant can be even registered in his rented place and you cant as a landlord make a person homeless
the landlord only has the upper hand if he and the tenant sign a special deal at the notary. but its rarely done in favor of the usual deal or handshake agreement
>crash
Dip, as it eventually turned out.
the nuclear family model was popularized by the real state companies in order to sell more houses. what a curse on our society its been
>mfw bongs can't actually own property because of leasehold
are you getting drafted?
That tends to be for flats mainly, but yeah it's grim looking up a flat, seems a decent price then you see "Leasehold 58 years", you can get it extended but it'll cost you
What does that mean in practice? That you can only own the place for 58 more years? What kind of costs are you looking at if you want to extend it?
I rent because I have interest in owning and all the trouble that comes with it.
I've lived in my apartment for 11 years. Rent is 4800 kr (€480) per month and I have a heated garage included in that price.
I have a 10 minute walk to work and I'm placed very comfortably near shops and restaurants.
Buying a place here would costs me at least €300k and I would probably get a smaller place. Monthly fee would be around the same as my rent and I would also have to pay the actual mortgage for decades.
So in short, I'd gain nothing and I'd be poorer every month.
>"but muh sale value bro"
Plan on living here until I kick the bucket.
nah I am off the books in terms of military service
>because I have interest in
Because I have "no" interest..
and what kind of trouble does owning property entail exactly?
>That you can only own the place for 58 more years?
Basically yeah, no idea what happens if you stick around after, guess you're considered trespassing or something
Extending costs somewhere between £1k-10k and you can only extend it by 90 years if I remember right, apparently the lower the time left the more it'll cost and it brings down the flat price too if there's not much time left
Maintenance, dealing with the actual housing group that owns the building, repairs etc.
Stuff that is no problem when you rent because the landlord takes care of all of it for free.
>Why does much of Europe have a renting culture?
wouldnt say so, everyone has attitude here that renting costs more than mortgage.
I think there's a stat that around 50% of housing in Lithuania is bought even without any mortgages/leasing
Maintenance. You have to fix it yourself or find someone to do it. Renting you just call the landlord to get it done or you don’t give a fuck and let it destroy the place and you find another.