Re:How to find a job as Software Developer in Germany
by alkonaut on Thursday April 22, 2021 @01:20PM
(#26905292)
> If you're not paying off the principal, you're just renting from the bank without the benefit of having a landlord to fix things.
Renting a house is more or less unheard of. If I want a house I need to buy one (or: “rent from the bank” as it were)
And the market price is basically “what two high income earners can afford if they pay interest only”.
So: if I want to live in a house at all, I need to buy it using borrowed money, and in the window I expect to live in a house (say 10-25 years) I couldn’t make a large dent in the principal regardless, because of the extremely low interest rates (around 1% now for mortgages) and the high prices that come from that. I don’t like it, but I don’t have a choice.
Also regulations strongly favor buying with borrowed money over renting. Interest can be deducted while those who rent from a landlord obviously pay interest too - indirectly through their rent - but in their case it isn’t deductible. So anyone who is forced to rent (e.g because they can’t afford the huge 15-20% down payment or aren’t paid enough to get the mortgage) is pretty much subsidizing the tax deductions of those who take mortgages.
Renting a house is more or less unheard of. If I want a house I need to buy one (or: “rent from the bank” as it were)
And the market price is basically “what two high income earners can afford if they pay interest only”.
So: if I want to live in a house at all, I need to buy it using borrowed money, and in the window I expect to live in a house (say 10-25 years) I couldn’t make a large dent in the principal regardless, because of the extremely low interest rates (around 1% now for mortgages) and the high prices that come from that. I don’t like it, but I don’t have a choice.
Also regulations strongly favor buying with borrowed money over renting. Interest can be deducted while those who rent from a landlord obviously pay interest too - indirectly through their rent - but in their case it isn’t deductible. So anyone who is forced to rent (e.g because they can’t afford the huge 15-20% down payment or aren’t paid enough to get the mortgage) is pretty much subsidizing the tax deductions of those who take mortgages.