You do know you can still give money away if you have loads of it, there is no stipulation about whether it is inherited or not. It seems a bit rich someone who gets paid loads living in a paid for house saying to someone renting a room, that if they inherit some money it should be 100% taxed.
Is borrowing money massively Tory as well?
I wasn’t going down that road. More that I found it odd that someone saying they’re banging off their mortgage as soon as possible was met with “have you considered doing x instead?”. Being mortgage free seems like the top dog to aspire to if you ask me.
And they’ve gone up 33% since 2012. They’re gonna catch up with the UK soon.
Yeah, I think people forget just how precarious the situation was throughout the 1980s and early 90s - repossession rates were high with interest rates at the whim of Tory chancellors jacking them up and down to prop up their election hopes.
Rates of 15% seem unreal now, but it was a horrible time to live through.
Yeah, it was bad. Bailiffs round, us lot with bags packed ready to leave. Didn’t tell any of my mates for years after - as a teenager it was just beyond embarrassing. The house was auctioned off for next to nothing as well. Dark days.
I suppose it depends on risk appetite. Being able to borrow cheaply against the most valuable asset you own is quite powerful in terms of freeing up money to invest in other things.
Is that absolute, or real?
Given that Germany has experienced wage growth far in excess of the UK in that period, it has a long way to go until they catch up in real terms.
Yeah. But the freedom one has owning a property outright and not having to pay rent/mortgage costs… and if all you need to do to achieve that is smash a bit more extra into the mortgage each month… no brainer for me personally.
Indeed. In my case I have no need to take any risks at all, and there’s minimal benefit to me from taking any voluntarily.
yeah this is my thinking, and then when that freedom has been acheived that might be the time to look into other options etc -
and if everything collapses i still a have a roof!
Not if it’s the roof that collapses, so maybe lay off the Kasabian to be careful.
I have zero. I know you’re correct though, and several people told me the same. It’s all due to personal experiences. But it’s moot really, as it’s paid now.
Real. In particular, the situation in major cities (Frankfurt, Munich, etc) is fucked, because:
Sounds familiar?
I never said that it was a paradise, just that the situation is a lot better than in the UK.
This is exactly the key difference here. The rental market in Germany its a financial company making a buck, in the UK it’s individuals building personal wealth. There is also a real estate tax which helps + a tax on selling property.
Also a significant public rental sector and many housing cooperatives that help drive rent down. Owning property in Germany just isn’t that good of an investment compared to here.
I don’t know about Marckee but how fucked property market is really isn’t what I’m questioning. The issue is how important property is in terms of building and mentaining wealth.
Only on properties sold within two years of purchase, or in the case of buy-to-let homes, 10 years.
Given the recent house price rises, it is now. Property (called Betongold in German) has become a refuge for savers.
But rents are ultimately more expensive then mortgages. Actually now they are straight up cheaper then renting. So when you get a mortgage you are paying less then you would on rent to buy a asset of enormous value. While renting you are basically digging into your savings while paying off someone elses mortgage.
Fair enough so Germany is starting to have the problems that are already in full flow in the uk. What effect will that have on the rental economy? Surely less people will benefit from this wealth boom.
That tax is still better then the uk system. Particularly that it’s targeted on buy to let. Rather then say it being aggressively promoted.
