Why are UK house prices so much higher than in Germany?

GDB2222

Degenerate wrote: »

If every country in the world was a net exporter, who would they all export to?

When I studied the bit of economics I know, the idea was that Country A would specialise in one product and country B would specialise in another. Then there would be mutually beneficial trade, with neither being a net exporter or importer over a long period of time.

Currently, we have China making everything and us buying it with money they lend us.

Degenerate

GDB2222 wrote: »

When I studied the bit of economics I know, the idea was that Country A would specialise in one product and country B would specialise in another. Then there would be mutually beneficial trade, with neither being a net exporter or importer over a long period of time.

My point exactly. So why have you been arguing that that being a net exporter is "better"?

GDB2222 wrote: »

The German economy is better than over here.

GDB2222 wrote: »

Ah, so there I was thinking it's a good idea if domestic consumption is less than production.

shortchanged_2

chucky wrote: »

i thank you

for some that are still caught in their time warp and still believe that you will be able to buy a property on a single income x3 must think we're still in July 1988 when the capital was actually Bonn.

and for the time warped delusionals... you missed the point in your enthusiasm. better luck next time

Very good effort at a face save chucky.

However instead of pretending you were trying to be clever why don't you grow some and admit you got it wrong.

dsab

I think the main reasons are generally security of tenancy in Germany and the difficulty of getting a mortgage.

If you rent a house in Germany and pay your rent on time it is almost impossible to be kicked out. Actually the only way to be kicked out (beside not paying) is if the landlord himself or one of his immediate family wants to move in. And even then notice period to be given is usually minimum 6 months and up to a year.

Renting is a long term thing in Germany. Most rented properties come as a shell without any furniture and often even unpainted and without carpets / flooring. By German tenancy laws you can do whatever you want to the property while you are living there, as long as you put it back into the same condition when you leave. Not unheard of for tenants to knock down (non bearing) walls, make alterations etc, hang up as many pictures as you like, build a terrace, fit an expensive kitchen, and sometimes even an extension (this one of course with LL consent). Very common for Germans to live in the same rented place for 20-30 years, and sometimes even longer.

Mortgages are much harder to come by in Germany. Banks generally are far stricter with lending, and I don't believe they have any tracker mortgages or anything like that. 15-20% capital is expected. Mortgages are usually fixed for many years, if not even the lifetime of the mortgage. Another thing is, that very often one bank will not give you all the money. Often a mortgage is split to 3 lenders.

1. Main Lender (often 50%) - lowest APR and first access on the title of house
2. Second Lender - slightly higher APR for second access on the title of house
3. Often a Building Society - highest APR, but will accept third access to title of house

GDB2222

Degenerate wrote: »

My point exactly. So why have you been arguing that that being a net exporter is "better"?

Ah, I see. Well, I think it's a lot better than being a net importer, running up debts. That's not too bad if you renege, but I can't see that happening.

chucky

adouglasmhor wrote: »

It is Berlin.

And Germans can get multi life mortgages, you can pass on your mortgage to your kids after an interest only mortgage, 50 years or 75 years are common and 150 years is not unheard off.

yes we knew that already.... jeez...

you're nearly as slow as this wannabe who still lives in the time warp of 1988

shortchanged wrote: »

Very good effort at a face save chucky.

However instead of pretending you were trying to be clever why don't you grow some and admit you got it wrong.

adouglasmhor

schwanzkopf wrote: »

yes we knew that already.... jeez...

you're nearly as slow as this wannabe who still lives in the time warp of 1988

Go do one. How are we supposed to know what a twonk like you thinks or knows, you were wrong about one thing so we already know you are dumb?

Degenerate

GDB2222 wrote: »

Ah, I see. Well, I think it's a lot better than being a net importer, running up debts. That's not too bad if you renege, but I can't see that happening.

The two sins are equivalent.

By being a net exporter:

- Your employment is dependent on external demand from from net importers. Hence why Germany took a big hit as we all tightened our belts in the crash.

- Your surplus is what ends up financing those debts in the trade deficit countries. Hence why The German government reluctantly committed to bail out the EU deficit states earlier this year. If they default, they take the German banking system with them.

Of course, being a net exporter does endow some with a pompous sense of behaving "virtuously", thinking they have the moral high ground. But actually, why is it always assumed that the blame for such imbalances lies with the importer? Some astute commentators have argued that the European imbalances are caused as much by German wage and price "dumping" as anything else.

chucky

adouglasmhor wrote: »

Go do one. How are we supposed to know what a twonk like you thinks or knows, you were wrong about one thing so we already know you are dumb?

this is the reason that i like this forum so much, people like Douglas keep this forum alive.

have you ever seen a panther that is pink Dougie?

Bullfighter

London ISN'T the capital of the England, it's Colchester, coz 2000 years ago it was.

chucky logic.