EXBlicks: Concrete gold!



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As if there is no risk in mortgages or price decreases

Besides the risk of losing a job and loosing your ENTIRE investment because you can't pay the mortgage there are lots of costs associated with buying and owning that nobody wants to talk about. (And by the way there are lots of horror stories of people buying into buildings that had structural issues -- at that point your investment can drive you into financial ruin). It's true that prices are currently still rising but that can change the next time Germany has it's very own financial crisis.

People forget that Germany's an export driven economy. One in three cars in China are made by a German car manufacturer. What happens when that market continues to slow down? Russia was a sizeable export market for goods and that market is now obviously in decline. Things can change quickly.

There are also external factors leading to these real estate increases. And this external money moves out just as fast. Spain is a great example where people couldn't imagine things going bad, lots of foreign money was buying, everything was great -- until it wasn't. People who felt they had to buy started loosing their jobs and then couldn't pay their mortgages. To this day the mess hasn't been cleaned up.

Seems nobody can remember the last time Germany was in the dumps. Those were painful years, with a million more people unemployed than today. That can (and will) happen again.

Fred more than 7 years ago

It's not 'your' home.

If you're renting, it's not yours. Also, if you're 44 or 42 and still renting. you're probably a loser.

Andrew more than 7 years ago


How wrong you are Andrew. In Germany, being a renter in no way means you're a loser... and, yes, renters have rights. Hard for an arrogant half-wit from an English-speaking country where property ownership is tantamount to having made it to comprehend, though.

Frank more than 7 years ago


I´m afraid Frank is right - there is nothing wrong or indeed unusual about being a tenant for your whole life around here. Over 60% of all Berliners rent their flats or houses not because they are failures with not enough financial power to buy but because that is a) a tradition and b) a prerequisite for flexibility should your job/family/other circumstances require your relocation.

Berlin "Altbau" houses are in fact tenements which were built as such (with rooms for rental and not for sale). It might be safer to own a flat these days (your rent´s quite secure then:) but this is still not the first thought that crosses anybody´s mind here (unless you wish to invest money or to rent out yourself).

Notmsparker more than 7 years ago

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