The Housing Market Is Broken - Reasons Why TommyKay Needs To Buy An Apartment

[@sidbhatnagar7545]

Who needs an apartment when you have a twitch chat and KZbin gang that loves you

[@sayerscreed]

Dumbest thing in the world that he is charged a fee for keeping his money in a bank account

[@delge1554]

Germany has negative interest rates. They are doing it to artificially create consumption

[@sayerscreed]

@@delge1554 interesting idea from an economic standpoint but probably bad in the long run I'd assume

[@Pro_Fuze]

To encourage spending Id assume

[@matthewkolakowski3701]

@@delge1554 and then they wonder why inflation is going crazy lol

[@TopShot501st]

Welcome to negative interest rates in Europe...🤣

[@tropicalfruit4571]

Man I have the exact same issue. I live with my parents but I've been wanting to move out for so long but when I do the math it doesn't make any sense. If I start renting, the amount of money that I can save up decreases so much that we're moving from like a 3-4 year plan to a 10 year plan if not more! And I am not gonna rent because I want to have something of my own in the end, I'm not paying half a million of our Monopoly money of Polish currency in rent just to to have nothing out of it. And the most annoying thing, my dad keeps nagging me to not even think about getting a loan (understandable, I don't want to myself) and he told me a story of how inflation can either save or fuck you. Apparently when my granddad was getting a loan for the house they were buying back in the day they had to pay so much money that they didn't know if they will have enough to eat (also my granddad was a director of a government owned company which is good fucking money) but then inflation hit SO HARD, he started earning a lot more (but the money had similar value) but the interest rate on the loan was the same, and when he heard on the radio that this is all about to change he went to the bank and paid everything off with what he had in his wallet plus the bank account. Like... my man paid off entire loan with 1 salary, and now the boomers are making fun of millennials for not working hard enough to buy a place of your own where I need like 30 full salaries for that, get the fuck out!

[@A.N-f7p]

Why would he nag about getting a loan? Right now interest rates are at all time low but since inflation is gonna hit harder soon the ECB will def raise those interest rates by end of the year. Getting a loan now is best you can do because as you said: 1 rising inflation, it will eat away at your debt (just like you told your grandfather had happen to him) 2 interest is still LOW atm, but it will RISE SOON, its just a question of when central banks will do it Interest rates always follow inflation, rn they are still to scared it will hurt corona recovery but ecb and fed have both announced they will stop buying bonds, a clear indication for higher rents this year, in USA prob sooner than EU. I would strongly encourage you to get a loan if you have the starters money cause with the current economic outlook it legit can only do you good. Today you are still capable of getting a low interest loan while inflation is on the rise.

[@tropicalfruit4571]

@@A.N-f7p Well I will definitely take that into consideration when I have enough money on top of a loan to buy a place. It's just that our government is... dodgy to say the least and you never know how fricked we're gonna get tomorrow, I guess it's mostly that he's worrying about. But also, not to wish anyone death but I do have a really old grandmother. If in the process of saving for my flat she passes away I can take over the place and just save enough money over time. I think it's not gonna be terrible if I don't have to pay rent, just bills and food. We'll see.

[@titolabieno4771]

In Italy, in a city like Rome you cannot find houses below 250.000 euros, the average salary is something like 1500 euros so it's ridicolous. You have to wait to have the right partner, the one you want to spend your life with, in order to buy together a house because alone is impossibile. The altenative is to pay every month 800 euros of rent, more than half your average salary, and never collect enough money for asking a loan to the Bank.

[@tropicalfruit4571]

@@titolabieno4771 Lol so in Poland it's like that but no matter the city xD If I were to rent a 60ish square meter apartment in my under 100k people town then rent + bills would run me close to 80% of my monthly salary. I suppose it's doable but you can never buy anything more than you actually need and can't save money at all. Renting with someone is the only way a regular person can rent, you can probably even save a little but your parents will pass away before you can save up enough from these scraps to get anything of your own. Actually some small places outside of towns can sometimes be relatively affordable but nobody ever wants to live in these and you need a car and petrol will bring you down.

[@davinnicode]

If I were in his place I would buy ASAP in Leipzig. As a city of the former GDR real estate prices were really low compared to similar German cities. Now one could say that Leipzig has developed the most since the fall of the wall and it became an insider tip to move there as it was cheap, young, adventurous and with good infrastructure and job opportunities. Of course housing prices increased over time but this city is really moving forward. Chances are high that you can make a good deal if you can afford to buy real estate. However, you probably have to compete against many big domestic and foreign investors.

[@Aragorn-87]

I am very certain that the cost of rent and to buy a apartment of similar size is much lower in a smaller city outside Leipzig. The cost of real estate in large cities all across the world is very high and in Sweden the capital Stockholm has many years of waiting que for apartments

[@tenr0h]

Yes. You can buy good houses in germany even as a normaler worker. But in cities or big cities youre oofed. Even renting an apartment in berlin and munich cant be afforded with normal jobs

[@michaelstevens8073]

In my business and fiance classes, we were taught there are 3 things to look at when investing in real estate, they are: location, location, location. I live in America, my state capital is one of if not the fastest growing city in the United States. So if I buy a piece of land or real estate on the outskirts of the city for $100k, in about 5-10 years it would possibly value around 400-500k.

[@michaelstevens8073]

And if you look even deeper you would find that there is an advantage to investing in American real estate, because in America we suffer from horrible urban sprawl/suburbs/horizontal, which basically means: the investment would gain value much faster.

[@davinnicode]

The problem is with the outskirts of big former GDR cities that they are pretty much underdeveloped in every aspect. Sure it is cheap to buy real estate there but you‘ll find old/bad infrastructure, young people moving away, old people dying, no shops etc.. In comparison to the standard German living conditions these places are really behind. Little to no progress has been made since the fall of the wall. Of course you can speculate when rent prices will increase so much in central Leipzig that people will seek to move to the outskirts but a lot has to be done before this will happen in a larger scale

[@michaelstevens8073]

@@davinnicode I think this comes mostly down to the fact that European cities are much more land efficient, building more vertical, than American cities. Phoenix, my sate capital is literally just 100s of miles of just suburban hell, everyone wants their own land(American dream). This is bad in the grand scheme of things, however it's very easy to profit off of such a large demand. My fiance teacher bought 30acres of barren desert land for around $50k-100k, 5 years later a real estate firm bought it off of him for $1m. Car culture also plays a big role aswell. In order for a city to grow it will need to develop its outskirts, and make new ones.

[@gerlatdziii]

He’s right, and it’s kinda sad with inflation and stuff

[@larrycarter3833]

Awesome content bro! Also, I can't wait for the new collection of NFTs from MetaMotor Club to come out! We have a chance to invite people to their discord to get prizes such as a Rolex or a first class flight + hotel to the MetaMotor Club party!

[@G31M1]

My dad is a financial advisor and he agrees with Tommy about the money sitting on the bank account getting worth less and less. He’s really into stock market stuff which is also taxed ridiculously high in Germany but still better than doing nothing with your money. Tommy should also marry Lisa legally because of the taxes you can safe that way. With same sex marriages being a thing I already thought about marrying one of the bois just so I get away with paying less taxes lmao

[@t.hurson2298]

In my area, Daytona Beach, Florida. Rent is going up by about 25% across the city. Rent is about $1300 for a 600sqft. Apt. You also need 3x income to move in. So, at this point if you work 24/7 with a minimum wage job, you cannot move into an apt here alone. The mortgage I have on a house in Northern Florida is only $1200 for 1700sqft. Shit is backwards

[@michaelstevens8073]

Location, location, location.

[@RandomAutist]

exactly why people should focus money on investments and property, its that simple but that difficult to achieve because then everyone would be a millonaire and when everyone is, nobody really is.

[@Theo6405]

People are talking like it's 100% sure that the real estate prices are only going up....

[@davinnicode]

0.05 percentage points increase in interest and many house owners will be punching air.

[@pokpok97642]

the bubble will pop soon enough inshallaj

[@michaelstevens8073]

Real estate are like stocks, research, try to buy low(if the "bubble pops"), sell high(right before the "pop"), rinse and repeat.

[@Theo6405]

@@michaelstevens8073 no bro I can buy stocks with a few thousands but how should I diverse property you need at least a few millions to buy in different cities

[@michaelstevens8073]

@@Theo6405 Sorry to assume, but I'm guessing you're from Europe? In fast growing suburban cities, you can buy barren land on the outskirts for $6k an acre which would grow in value by possibly 10x in 3-4 years.

[@slosoa115]

Become a land lord and rent out. Either long term or air bnb🤌🏻🤌🏻

[@antonsimkin]

meanwhile me living off savings for two years

[@ConstantineTheGreat1453]

Buying an apartment is kinda a shitty investment tho, the apartment in 20 years will be outdated and there’s no land value to fall back on that’s appreciated. So the apartment will be difficult to sell and if you do sell it, it will be for below market rate.

[@LeninCake]

not in a proper urban area, especially in a country like germany, where building space is relatively scarse, causing property owners to invest more in keeping their old buildings functional for a longer period

[@furinick]

pro tip: go for some safe investments so your money doesnt "die" on the bank, some goverments offer an investment that is basically you lending them money and its usually very safe and profits over inflation, i reccomend looking it up, but dont go into dayttrading, that is just gambling

[@G31M1]

What about etfs or blue chip stocks?

[@sinoroman]

tommy still saves up a good amount after every cost

[@ThePointlessBox_]

''yo but they have free healthcare in europe''

[@martinandreasvik6505]

Should’nt have quit law school!

[@Pischingers]

51% tax wtf

[@jackthezombiekiller]

no

[@sinoroman]

it says 45% if you earn over 277,826 euros on a German website (so I’m guessing 45% tax rate in total)

[@misterman8210]

@@sinoroman plus socialinsurances which is really expensiv especially if u aren‘t a employee

[@davinnicode]

The effective tax rate is lower because you can deduct certain things especially when you are the owner of a business. However, in Germany the state still demands a lot of money through taxes because of the extremely costly social and health system. There Are basically taxes on nearly everything. On the other hand Belgium has the highest income tax in Europe I think

[@alexanderiliev1431]

Extensive welfare + aging population. Only solution is either more taxes or more children/immigrants.

[@Xzaryo]

I don't get it, he is a streamer right ? That means he doesn't have to live in a big city besides internet and I know germany struggles abit with fast internet outside big cities. Nevertheless, there are still cheap alternatives like buying Modular houses, He would pay far less for that than for an apartment or a house. He should consider moving out of the city and try 20km outside the city in a dorf with good Internet. Thats what I would do and in fact have done and payed for my finished house and land 50 000 EURO. The house is only 52m2 but I'm a gamer junkie so I don't really care + i got a big garden with a deck on whcih I can relax in summers, screw the cities and the housing market go yolo like Elon musk with his Modular House.

[@IAmWarden.]

Tommy should move countries to one that will tax him less, like Texas….

[@swissar]

Andorra

[@AustriaIsHungry]

Great we can meet him in walmart.

[@MisterJae_wastaken]

Polish housing is cheap

[@tropicalfruit4571]

No it's not; it;s cheap for outsiders, for us, slaves of this country it's still expensive.

[@pokpok97642]

tommy could probably buy out a bunch of apartments in poland and make rent money, then save it up for a house in germany. euros are probably worth like 4x as much as polish currency

[@tropicalfruit4571]

@@pokpok97642 like 4.5x more like. But take into consideration that if you rent, you're also getting paid in PLN. You pay like 300k PLN for a VERY average small flat in a small town in Poland and can maybe get 1.5k PLN from rent on it which is like 70k euro for the flat and 330 for rent. 330 Euro ain't that much in Germany in terms of housing. Not to mention banks fuck you over on exchange rates. So you need 350k euros to buy 5 flats (assuming they are on average 300k PLN) to get 1500 euros a month. I don't see how you can earn more in Poland on this kind of deal; you might as well just buy 1 place in Germany for 350k and rent for 1500, avoid the hassle of having 5 flats to buy.

[@wetwillyis_1881]

Listening to Tommy explain how B.S. this is, makes me so glad that my dad is an actuary and explained to me how this whole banking thing works.

[@OK-ws7ti]

Must have been nice

[@regis53]

He need to buy and apartment for 500k dollars and i wil probably never see that much money lmao xD

[@delge1554]

mortgages with these interest rates are basically free

[@notjimpickens7928]

bro idfk who this european fella is, and i cant even hear him over the game and all that other background noise with my bass af headphones lmao someone tell him to turn it down

[@Charlieandp]

European fella

[@Smithistory]

Inflation is not the result of capitalism, it is the result of democratic voters supporting the idea of a central bank and inflationary monetary policy.

[@TürkTeksaslı]

Shit homie Russia just invaded Ukraine