61–70 of 203 posts
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Are adjustable-rate mortgages common in Germany?
They are normal basically everywhere but USA I think.
I'm really shocked whenever I hear someone has an ARM again. 2008 wasn't that long ago!
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I had a brief interaction with a real estate agent a few months back and he told me they really have trouble selling houses now at those interest rates. The run on housing apparently has dialed back significantly. He also mentioned that he thinks in around 5 and 10 years time the market might be flooded with houses people bought at low interest rates because they will not be able to pay their mortgage at these new in…
Interest rate guarantees last anywhere from 1 to 25 years. That means that in any given year, it is a pretty small chunk of the housing market which will see a change in rates. Overall, that has a significant damping effect on the effects of changing interest rates.
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If things continue, in 5-10 years, dollars will be worth 50 cents, and it should be MUCH easier to pay your mortgage. And, I'll eat my hat if we don't get back to ZIRP sometime in the next 10 years.
That's not going to happen, salaries are depressed and are not keeping up with inflation by a large margin.
Actually the biggest blow was not the energy costs, but the interest rates. They went from 1-2% now at 4-5, even 6% for real-estate ( new building and old ) while the prices are still at last year level. For other types of financing, I had a "good" offer which went to 12% interest. I felt like in a 3rd world country. With such expensive money, nothing will be done. The construction economy is really going dow from mi…
I had a brief interaction with a real estate agent a few months back and he told me they really have trouble selling houses now at those interest rates. The run on housing apparently has dialed back significantly. He also mentioned that he thinks in around 5 and 10 years time the market might be flooded with houses people bought at low interest rates because they will not be able to pay their mortgage at these new in…
With a world moving away from ICE to EV, and with Chinese brands winning at home and abroad, it presents a double whammy nightmare for Germany. Lowered exports to China, plus lowered exports in other markets. And this is all on top of energy prices from the fallout of the conflict in Ukraine, the shut down of nuclear power thanks to the Greens and the geopolitical tensions between the West and China.
While Germany's economic model has served it well during an era of a rising China, it may not be the case in a era of a risen China.
[1] China’s carmakers outstrip foreign brands in its electric vehicle boom https://www.ft.com/content/dd149923-1c5d-4e5e-8be6-d979aa48a...
[2] Big drop in German exports to China raises fears over EU’s economic powerhouse https://www.ft.com/content/3034d39c-118a-44d3-b9bf-6482b7860...
[3] Can Volkswagen win back China? https://www.ft.com/content/afad4566-6404-483e-934f-c905507bf...
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I had a brief interaction with a real estate agent a few months back and he told me they really have trouble selling houses now at those interest rates. The run on housing apparently has dialed back significantly. He also mentioned that he thinks in around 5 and 10 years time the market might be flooded with houses people bought at low interest rates because they will not be able to pay their mortgage at these new in…
Are adjustable-rate mortgages common in Germany?
There are mortgages with yearly adjustments, but those are rare afaik.
They shouldn't be shutting down nuclear. Build more nuclear reactors. That will provide more clean energy and a lot of jobs. Modernize the grid. Make it a smarter grid that is more resilient to harm. These projects pay for themselves quickly and are easy to finance with how much wealth Germany has.
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The energy cost might be the cause of that interest rate though.
Not from what I know. The high energy costs are due to a effective and possible felt scarcity which occured at the beginning of the war in Ucraine. The energy companies are now planing to reduce the costs with as much as 25% from next month, since the marked is now flooded with gas and renewables ( a lof of new wind parks and solar installation will go online the next month ). I honestly I do not know why the interes…
The part in square brackets is yet to come.
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The US is not getting poorer nor is inflation still out of control
> The US is not getting poorer then why am I being asked to bail out a generation's college loans? then why is food bank use at an all time high? then why are more six-figure earners reporting to be living paycheck-to-paycheck? then why is personal credit card debt at an all time high?
Because handing out money tend to give votes.
They shouldn't be shutting down nuclear. Build more nuclear reactors. That will provide more clean energy and a lot of jobs. Modernize the grid. Make it a smarter grid that is more resilient to harm. These projects pay for themselves quickly and are easy to finance with how much wealth Germany has.