I read a article this morning in the LA Times about the German economy and it stated that most Germans rent and the auto market is a huge market because Germans don't buy homes for the most part.
I am stunned , why don't Germans buy homes ?
Is this typical of all of Europe ?
I have a girl from Potsdam running for me at the college i coach at-- she has a hard time understanding why Americans are so willing to loan themselves into a lot of debt-- it's something that's not part of her culture-- for the most part they spend what they have and don't use other's money for personal goods-- they use it for education, pensions, and health care
I think German is still a little too young to buy a house. Maybe after he signs with Nike.
Buying a home is just as important as education. I doubt they spend it on healthcare as it is most likely free. I do not think you have any idea as to the real economic reason Germans do not buy homes. I would guess they don't have as many homes on the market thus the price is very high.
The German people are, in general, very practical. I believe that if they do not have the liquid funds to buy a home, they WILL NOT buy a home. Now the homes for sale may be more expensive there, especially in cities where space is limited. But I'm sure Germans value their education (and therefore their future source of income) more than owning a home.
Nosy person wrote:
Buying a home is just as important as education. I doubt they spend it on healthcare as it is most likely free. I do not think you have any idea as to the real economic reason Germans do not buy homes. I would guess they don't have as many homes on the market thus the price is very high.
They move around Europe alot? Or Germans just don't like owning houses like Amiercans don't like spend lots of money on fashion?
I know a little German, he is sitting right over there!!!!
Mrs. Masterbooner wrote:
But I'm sure Germans value their education (and therefore their future source of income) more than owning a home.
The system of education is very different in the US compared to Germany. First of all, not so many people go to Universities in Germany and the concept of private Universities with steep tuition costs is alien to them. In fact, all of the public German Universities are free to those who are accepted and the public Universities are by far the most prestigious to attend.
Do German kids still have to decide their vocation/career paths at early ages?
Mrs. Masterbooner wrote:
Do German kids still have to decide their vocation/career paths at early ages?
Ja und Nein. By the time they are 13 or 14 they usually have to decide whether they are university bound or vocational school bound. You then go to the appropriate secondary level school. Going to a vocational high school doesn't have a stigma like it does in the US. It also depends on where you live. In the big cities you have many choices and there is a lot of competition to get into the Gymnasium, which is for university-bound students. I have friends from rural areas who only had one general secondary school where students of all levels were taught, similar to most high schools in the States.
As for the OP's question, there are fewer houses or flats for sale, which drives up the purchase price. Last I heard a two bedroom flat in Koeln runs about $300,000. In most areas, it is cheaper to rent. Germans tend to save much more of their income and don't view their homes as investments like we do.
Is this true for most of Europe ?
I just remembered that the Universities in Germany can now charge minimal tuition due to a Court ruling a few years back. When I lived there in the 1990's, it was totally free to study in a public University. Now some of the schools charge 500 euros per semester (it is regulated by each state) which many think is expensive!
The above poster is correct about the schooling. The kids get placed on educational paths early on. There are several paths, but the Gymnasium is the one that leads to the University. In addition, the middle path or Realschule is where a lot of kids go to learn a trade or career. It is not vocational in the sense that many Americans think of when they hear this term, but is where one would go if one wanted to work as a middle manager in a bank, in the hospitality or tourism industry, etc.
Probably most of mainland Europe has the same attitude to buying a house. I remember reading somewhere that in France 50% of people rent accomadation instead of getting a mortgage.
Ireland is an exception. Everyone wants to own a detatched house with a big garden. It's an understandable hangover from 800 years of English rule and the Penal laws which forbade Catholics from owning land.It is a unsustainable form of housing development which is very inefficient. The Germans would not be impressed.
You're asking the wrong question. The question shouldn't be why are German's so hesitant to buy a house, it should be why are Americans so eager to own a house? Probably becuase you needed to be a landowner to vote back then, and also probably because that's what lured people to move west.
Here's an article on buying vs. renting.
http://realestate.yahoo.com/promo/renting-makes-more-financial-sense-than-homeownership.html
;_ylc=X3oDMTFta3Jqcjk3BF9TAzI3MTYxNDkEX3MDOTc2MjA0NjUEc2VjA2ZwLXRvZGF5BHNsawNyZW50aW5nLWJldHRlcg--
actually germany is one of the few countries not to have seen a run up in house prices a la UK, US and Spain
Ernst Reuter wrote:
As for the OP's question, there are fewer houses or flats for sale, which drives up the purchase price. Last I heard a two bedroom flat in Koeln runs about $300,000. In most areas, it is cheaper to rent. Germans tend to save much more of their income and don't view their homes as investments like we do.
I can confirm that German actually lives in the dorms.
I rent an apartment but I still own my parents' house. It's kind of a home base. It would be cool if my kids kept it as kind of an ancestral home.
In old world cultures people don't feel the need for separation and isolation from society as having a house removed from others does for Americans. People live their entire lives with their neighbors knowing most everything about them. They live in their flats and connect each day with many others. In America, you don't live like that, it's lonely as sad I feel. But if you Americans enjoy it that way then it is fine for you. Germans cannot live that way however.
Yeah because in New York, Chicago, Boston americans live in houses that are removed from others.
Old World wrote:
In old world cultures people don't feel the need for separation and isolation from society as having a house removed from others does for Americans. People live their entire lives with their neighbors knowing most everything about them. They live in their flats and connect each day with many others. In America, you don't live like that, it's lonely as sad I feel. But if you Americans enjoy it that way then it is fine for you. Germans cannot live that way however.
How about Scotland ? mostly rent or own ?