/biz/ - Business & Finance

[Anonymous No.27336591]

I am German and want to buy a house. My question is:

If there is a big global crash, how will this affect my property? I assume in Germany the housing market will still be desperate, even if some people go bankrupt and the prices dump for a short time. What about the interest rate though? Will the EU keep printing those Euros? Can the bank change the interest rate in a 20 year contract?

[Anonymous No.27336696]

>expecting serious advice on a shitcoin board

[Anonymous No.27337079]

>>27336591
I'm kinda in the same boat, but I don't understand enough about it. I assume a crash/inflation might be good if you got a fixed interest rate? It would also help pay off the property? Man, I'm a brainlet when it comes to these things, I'm just a shitcoin connoisseur

[Anonymous No.27337493]

>>27336591
Your property won't lose value as long as the housing market doesn't crash. People with high liquidity are more likely to invest in housing thinking it's "safe" and you may exit with profit.
>What about the interest rate though? Will the EU keep printing those Euros? Can the bank change the interest rate in a 20 year contract?
Read your contract, see what it says. I hope you read your contract or hired someone to do so before signing.

[Anonymous No.27337702]

>>27336591
hallo ich moechte ein nigger zu ermoedern bitte

LIDL LOHNT SICH

[Anonymous No.27337972]

>>27336591
When there is a crash I think the current shitshow in cities like munich will end. In other cities there will be a dip but nothing extreme. Just my opinion no advice fren

[Anonymous No.27338333]

>>27337972
>When there is a crash I think the current shitshow in cities like munich will end

pls no

[Anonymous No.27338520]

>>27337702
Based

[Anonymous No.27338696]

>>27336591
Don't buy, rent instead. You will end up taxed to shit if you actually own a house.

[Anonymous No.27338746]

>>27336591
>buying a house
>in Germany
HAHAHAHAHAHAHA

[Anonymous No.27338797]

>>27336591
I would love to know too

[Anonymous No.27338892]

>>27336591
Global crash will make your house drop in price a little bit then later itll come back to where it was, housing wont be getting any cheaper any time soon, your far better off owning it than renting it, and if you want to move somewhere, rent it to someone else

[Anonymous No.27339001]

>>27337972
Basiert.

[Anonymous No.27339003]

>>27338696
no no you got it all wrong you buy then you rent it out to other people

[Anonymous No.27339025]

>>27337702
Ahahaha

[Anonymous No.27339329]

>>27337702
ich fucken du töten

[Anonymous No.27339457]

>>27339003
>other people
in 20 years when you have paid of that property the only people left are brownies.

[Anonymous No.27339528]

>>27336591
>Eu printing money
That won't happen

[Anonymous No.27339643]

>>27339457
This. Real estate might crash hard in the next 20-30 years when Boomers are dead. I honestly wouldn't hold any expensive real estate for longer than a few years now

[Anonymous No.27339655]

>>27339457
Is it really the only solution to pay a high rent for a shitbox for the next decade?
I can't take it anymore.
I feel like I am living in a prison now that my mother moved into my small apartment with the excuse of the Corona lock-down.

[Anonymous No.27339773]

>>27339528
ECB balance sheet is going parabolic

[Anonymous No.27340011]

>>27339773
I heard that with the printing it did last year it effectively doubled the monetary mass and divided by 2 its purchasing power...
The housing crash may not happen the way we expect, but through the loss of value of the € appearing more and more in every commodity while housing prices stagnate due to the faked inflation calculation leading to a stagnation of wages.

[Anonymous No.27340092]

>>27336591
krautbro, you've got one thing going for you. In your country the house you buy would probably outlast the 30-year mortgage, unlike pic related

[Anonymous No.27340910]

>>27339655
Buy Appartment with a loan and instead of paying rent you pay back the loan

[Anonymous No.27340979]

>>27336591
>>27337079

Please look into history.
When you own property and the state goes broke, they will come with forced hypothek.

Look "Lastenausgleichsgesetz" after the 2nd world war.
Every one who owened a house got 30 years to pay a new mortage on his house.

More imminent danger is when you bought an overvalued house right now.
That caused the subprime crisis.

You buy a house with a value of 1 million now and take a credit for 800.000.
The market crashes, the house has a realistic value of 100.000. Now you need to assure the bank the remaining 700.000.
If you dont have them, so have to go to private insolvency.
Bamm....

[Anonymous No.27341502]

>>27340910
I couldn't do it for my own apartment because it made me sick to buy at these prices and to take a 20-30 years mortgage for it while getting cucked by taxes.
Instead I used all the money to invest in cryptos which made me rich, but now I have no reason to stay in a city in Germany if I don't need to work.

[Anonymous No.27342203]

>>27336591
>Can the bank change the interest rate in a 20 year contract?
No. Only after your 20 years is up will your bank change the contract and even then it'll match that of the ECB
>how will this affect my property?
Depends on how much you put down at the time of the purchase and how much is left to pay off. If you put down too little, then the bank might asses the situation and force you to sell your home. This is rare but can happen. Your banker will tell you if you are putting enough down as a deposit or not for this to happen.

Why would you go with Deutsche Bank though? Go with a credit union like Volksbank Raiffeisenbank. They usually give better rates and you actually help the other people in your community and not some fucking bank.

[Anonymous No.27342301]

>>27340979
This would make for a great buying opportunity if those who bought the bubble are forced to sell to cover the taxes.
But would the government really cause the bubble to pop just for some taxes when they can print to infinity?

[Anonymous No.27342303]

>>27340979
You just keep saying your monthly mortgage retard. Hole fuck Germans are retarded.

[Anonymous No.27343045]

>>27339457
this. germany is fucking doomed.

deshalb trenne ich auch keinen müll mehr.

[Anonymous No.27343172]

>>27340011
Checked but it didn't double.
More like +32%.

[Anonymous No.27344002]

>>27336591
Your primary worry in a crash should be maintaining a revenue stream, like a job. Without that, you won't be able to repay your loans on time and the bank will take your house as it's a hypothek. And also, see the last paragraph of >>27340979. Bank will want to see further insurance that you will be able to repay your house if the housing market crashes as well. No one can tell because you didn't specify a region in Germany and it depends on whether properties are overpriced. Lastly, in a crash interest rates go to zero. They're already at zero so you may see some helicopter money from ECB in that scenario

[Anonymous No.27344070]

>>27343172
The effect of inflation is slower to appear in the real world.
It can even take up to a decade.
During this time a country which didn't print would progressively have a stronger currency while the others lose value.
You have to take into account the fact that the € zone is completely dependent on the $.
As such the FED's printing does have an effect on the €.

[Anonymous No.27344330]

>>27344002
I heard there was a plan for extremely negative rates in the range of -3/-5%
They would have to ban cash, gold, silver and cryptos for that to work.
I didn't expect the banks to start implementing real -0.5% interest rates on their customers account, but the fact that they are doing it means they plan for worse coming in the future...

[Anonymous No.27344360]

>>27340092
>probably
most definitly, 90% of the houses on (ie. for sale) the market are already 30 years old and fine

[Anonymous No.27344518]

>>27336591
>Can the bank change the interest rate in a 20 year contract?
depends on what is written in the contract, its defined as fixed rate time and usually anything between 10-20 years, doesnt need to be the same timespan like the contract, most of the time its shorted because the contract runs >20 years

its NOT always 20 years for a 20 year contract like >>27342203 suggests

[Anonymous No.27344533]

>>27344330
That would only pump assets price further. Normies will never be able to buy house in this future.

[Anonymous No.27344561]

>>27336591
>If there is a big global crash, how will this affect my property?
1 house before crash = 1 house after crash

[Anonymous No.27344734]

>OP never replied
>OP is either a troll that has Germany living rent-free on his head or a retard that did not read his contract and is too ashamed to admit it

[Anonymous No.27344790]

>>27336591
If you lose your job it will effect your ability to make payments on your house. Think about your job security and if you can get another job quick enough that pays as well.

If the housing market crashes the value of your house will decrease below the amount you financed, making you stuck with debt even if you sell it.

The economy can suffer without the housing market crashing. Just because the last major economic downturn was a housing crash doesn't mean this one will be. A house is an excellent asset to protect against inflation.

[Anonymous No.27345218]

>>27344533
That would also quickly crash the system and end this free printing system.
Luckily for us the government is known for its incompetence.
They will do it until it's too late.

[Anonymous No.27345925]

>>27344734
Bro I just checked the thread after working my ass off on my day job. I thought the thread was dead already desu.

It seems I cannot buy a house with a loan right now anyway, because I became a freelancer 1.5 years ago need at least 3 years to be considered a "stable business".

I might buy a house with my own money/crypto-gains, but I don't want to waste non-loaned money on a fucking house that the government will tax to hell. The only reason I want one is to profit from the interest rates.

I will either wait 1.5 years to get a loan or buy a house with my own money and then use that as a security to buy a second house with a loan.

[Anonymous No.27345941]

>>27344518
He literally said within a 20 year contract retard.

[Anonymous No.27346073]

>>27344790
It's literally impossible to be evicted if you have kids though, so OP should hopefully have kids if he's buying a house.

[Anonymous No.27347327]

>>27345925
Why are you a freelancer in Germany? It's like you're asking to be financially raped. Banks don't like freelancers either, they see it as a non-stable income. If you do have money for a good down-payment (50%), then I might be wrong but I do know a lot of people that opened a company because the taxes/health insurance/benefits were miles better than being a freelancer. Then again, I don't know much about what you're doing so I might be also way off in my assessment.

[Anonymous No.27347854]

>>27347327
I am earning six figures. if I had a permanent position I would earn five figures. I pay 300 in health insurance and 42 percent income tax. so what? by the time I actually need to pay the taxes (two years later unlike with a stable job), the money is worth 30% less already, lol

[Anonymous No.27349898]

>>27347854
Then what's your real worry? That the housing market will crash? It's possible, but it's a good risk to take if you get a low interest in a loan. I would wait if I were you a put the money in anything but fiat currency. Where were you planning on buying the house?

[Anonymous No.27350181]

>>27344330
Negative interest rates are currently only for people with 100k in deposits. The banks know if they implement it for everyone they'll just hold it at home in socks, because there's no downside to it anymore.