Reply to: House Price Crash - not likely...

[Numptycorner]

Buy now while they are at bargain prices. The only way is up the average house price will be 1/2 million by 2010 and wages 40k a year, 3k a month repayments, leaves -500 per month disposable income. I can see it now, the new overdraft mortgage. With economics like that house price inflation will go on forever , you can't fail.

[Euro-commuter]

The taxation schemes.

In both cases the capital gain on your own property is taxed (in Germany for properties owned less than 10 years). Thus, it is (almost) impossible to buy your way up the market as we do in the UK.

As no-one wants to live with their family in the house that they can afford to buy as a single person, they are forced to rent until they are in a position to buy the house that they aspire to. This will often be the only one that they ever own.

(Italians are the same, many of which spend their working years renting in the city, whilst buying the house in the country that they expect to retire to).

tim

While it is true that many French people do the same (rent in the city where they work, buy in the country where they expect to retire), the reasons must be different: there is no CGT on the sale of a property that is your primary residence at the time of sale.

But buying and selling is more difficult and expensive, which tends to make people buy only when, or where, they intend to settle.

There is probably something self-reinforcing in the habits on both sides of the Channel: the fact that it is normal to rent in France leads to a healthy rental market, by which I don't mean a lot of greedy BTL, but rather a large supply of good rental properties everywhere, with secure long-term tenancy agreements available. You can rent a flat in Paris and feel that it is your home: which you can hardly do here with 6-month no-security tenancies with rules everywhere (can't smoke, or allow your friends to smoke, in your own home?) and regular snooping visits from the landlord. I'm buying a house in the UK at the moment, more because the situation of a tenant is degrading and unhappy, than because I believe it is a good investment.

[milanbenes]

nicely put Tim

Milan.

[sasguru]

Not from any genetic standpoint anyway.

Projection - a well known psychological phenomenon.

[tim123]

What's the difference in outlooks between UK citizens who love to buy their homes and France/Germany where the majority prefer to rent (so I've read)?

The taxation schemes.

In both cases the capital gain on your own property is taxed (in Germany for properties owned less than 10 years). Thus, it is (almost) impossible to buy your way up the market as we do in the UK.

As no-one wants to live with their family in the house that they can afford to buy as a single person, they are forced to rent until they are in a position to buy the house that they aspire to. This will often be the only one that they ever own.

(Italians are the same, many of which spend their working years renting in the city, whilst buying the house in the country that they expect to retire to).

tim

[milanbenes]

lol nice one shaun

sas,

poor your kids

Milan.

[shaunbhoy]

My kids, if I have any, will certainly not be getting much from me

Not from any genetic standpoint anyway.

[sasguru]

sasguru,

I'm gonna give you the benefit of the doubt as I am feeling friendly

if you read the thread you'll see that this bunch of deluded pinkos are saying that all property should go to the government upon death of an individual therefore making sure that every generation of every family is equal and begins with nothing



Milan.

And thus the dynamism of the country is preserved. My kids, if I have any, will certainly not be getting much from me - apart from the best education I can give them.

[Francko]

Yup sure am

Just PMed you.

[rootsnall]

'http://www.timesonline.co.uk/tol/news/uk/article1610266.ece'


'With 80 buyers chasing every property that comes on the market in London...'

Milan.

Same city not too long ago had 1 buyer for every 80 properties ! Next time we have a recession we'll have a similar situation, nobody really has a clue when it'll next happen.

[DodgyAgent]

sasguru,

I'm gonna give you the benefit of the doubt as I am feeling friendly

if you read the thread you'll see that this bunch of deluded pinkos are saying that all property should go to the government upon death of an individual therefore making sure that every generation of every family is equal and begins with nothing

poor those people

you can apologise later

Milan.

my goodness milan you got it at the first attempt

[hyperD]

Sorry, submitted instead of edited...

Chr1st, I'm as bad as the fecking users of my software...

[hyperD]

Sorry, misread post...

[BlasterBates]

Blaster, where are you in Switzerland? Zurich?

Yup sure am

[milanbenes]

sasguru,

I'm gonna give you the benefit of the doubt as I am feeling friendly

if you read the thread you'll see that this bunch of deluded pinkos are saying that all property should go to the government upon death of an individual therefore making sure that every generation of every family is equal and begins with nothing

poor those people

you can apologise later

Milan.