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A comment on Owning nothing is now a luxury, thanks to a number of subscription startups. Parent comment

Re:Owning nothing is now a luxury, thanks to a number of sub... by jaabe on Tuesday June 11, 2019 @02:23AM (#20153365)
In Denmark where I live you can loan 1 million Danish kroner at around 5k each month. A decent downtown apartment in a bigger city or a house in the suburbs is 2-4 million. Renting the equivalent is 10-15k, and with renting you obviously skip a lot of the maintenance cost and taxes. On the flip side loans are tax-deductible, meaning you actually don’t pay 20k to borrow 4 million, you pay 12k.

It can still be cheaper to rent, at least if you look at the small scale. Because in 30 years, those 4 million will be yours while people who rent will still have nothing. It’s also risky, because maybe those 4 million will really be 1 million.

Over all, owning real estate in a safe location is always going to be much better than renting. At least in Denmark. Hell, if you can manage to buy around 15-30 lower-cost apartments in a university city and rent them out, you’ll be able to pay your loans and have enough spare in passive income that you never have to work again.

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Re:Owning nothing is now a luxury, thanks to a number of sub... by Bombthecat on Tuesday June 11, 2019 @03:57AM (#20153659)
I doubt that the house would be 4 million. Thanks to reducing population, increased building and housing. Plus who knows how the weather will be, I'm not sure that owning a house is the right thing in 20 years.
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Re:Owning nothing is now a luxury, thanks to a number of sub... by scirocco on Tuesday June 11, 2019 @04:25AM (#20153751)
"Buy land, they're not making it anymore"

- Mark Twain

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Re:Owning nothing is now a luxury, thanks to a number of sub... by mapleoin on Tuesday June 11, 2019 @05:10AM (#20153894)
The problem is we've started deleting it now.

https://en.wikipedia.org/wiki/Sea_level_rise

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Re:Owning nothing is now a luxury, thanks to a number of sub... by Aeolun on Tuesday June 11, 2019 @06:56AM (#20154333)
This is perfect. It’ll make my land worth that much more!

Just have to be careful to only buy land 2.4m above sea level.

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Re:Owning nothing is now a luxury, thanks to a number of sub... by jpindar on Tuesday June 11, 2019 @02:10PM (#20157967)
If you choose the right spot, it'll become oceanfront property!
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Re:Owning nothing is now a luxury, thanks to a number of sub... by chrisco255 on Tuesday June 11, 2019 @09:12AM (#20155062)
Yeah hope you plan to hold for 100 years.
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Re:Owning nothing is now a luxury, thanks to a number of sub... by openoi on Tuesday June 11, 2019 @11:03AM (#20156030)
Humans build houses with their children and grandchildren in mind. Holding to land for 100 years and longer is not that an uncommon thing.
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Re:Owning nothing is now a luxury, thanks to a number of sub... by HeyLaughingBoy on Tuesday June 11, 2019 @12:49PM (#20157151)
Not in the US!
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Re:Owning nothing is now a luxury, thanks to a number of sub... by ahje on Tuesday June 11, 2019 @05:08AM (#20153890)
When I lived on Amager about six years ago, the prices were definitely around the 3-4 million mark in the suburbs. Prices fell somewhat once you got out of Copenhagen, but it was still ludicrously expensive.

Are you saying the prices droppped sharply the last 5-6 years?

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Re:Owning nothing is now a luxury, thanks to a number of sub... by jaabe on Tuesday June 11, 2019 @07:06AM (#20154374)
No.

But I probably should have been more clear. I mean, first of all, there are more cities than Copenhagen. I have a 3 room 92m^2 apartment that is 15 minute walking distance from Aarhus H that cost us 2.2 million. Secondly, I’d personally call a place like Valby “downtown” Copenhagen even though it would probably be more correct to label it surburbia like you do.

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Re:Owning nothing is now a luxury, thanks to a number of sub... by ahje on Tuesday June 11, 2019 @09:35AM (#20155225)
I wouldn't call Valby suburbia, although it'd definitely a suburb. The real Copenhagen suburbian hell start out at Kastrup, Glostrup, Ballerup, Lyngby and thereabouts.

Of course, there are other Danish cities than Copenhagen, and prices do vary. The parent comment I replied to simply stated that there are no 4M DKK houses, which simply isn't true.

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Re:Owning nothing is now a luxury, thanks to a number of sub... by oblio on Tuesday June 11, 2019 @09:27AM (#20155168)
Denmark's population went up by more than 15% in the past 30 years, FYI :)
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Re:Owning nothing is now a luxury, thanks to a number of sub... by roland35 on Tuesday June 11, 2019 @07:51AM (#20154594)
That is interesting loans are tax deductible in Denmark, I always thought that was just a US thing! From my understanding of the new federal tax law though, the higher standard deduction makes the mortgage tax credit less feasible for most people.
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Re:Owning nothing is now a luxury, thanks to a number of sub... by jbarberu on Tuesday June 11, 2019 @08:56AM (#20154937)
Nah, it's the same in Sweden :)
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Re:Owning nothing is now a luxury, thanks to a number of sub... by dagw on Tuesday June 11, 2019 @09:37AM (#20155241)
Only 30% of your loan costs are deductible in Sweden.
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Re:Owning nothing is now a luxury, thanks to a number of sub... by ahje on Tuesday June 11, 2019 @09:35AM (#20155229)
Ditto in Finland. Nordic thing I guess?
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