Okay.. one more thing this morning before I get back to work :)
I just read an interesting article about Europe's housing market. It is quite different than in America. Here's what I learned:
European real estate has been living in the world of volatile interest rates since WWII. There is no such thing as a 30-Year loan in Europe. Most people live with their parents until they are about 35 because they don't have the cash to buy a house. That is why fertility rates are 1.7. Loans are like 60/40. The terms are 2-4 years. That is all the risk the financial system will bear.
So, you have to save up 60% of the purchase price to buy a home and then pay the remainder of the price back within 2-4 years. In fact, this is not all that much different than in America in the 40s. At that time you had to put at least 50% down on a house and loans were relatively short term.
Interesting.....
It's Been Forever......
7 years ago
3 comments:
Are houses (relatively) any cheaper over there?
well.. since it's St. Patrick's Day let's look at prices in Ireland.
The average price for a house nationally in December 2009 was €213,183 ($293,104 at today's exchange rates), compared with €261,573 in December 2008 and a peak of €311,078 in February 2007. National prices have fallen 31.5% since this price peak.
The average price of a home in the US in 2009 was $270K. So, they are relatively comparable.
All I can say is....2776 Crockery Shores!
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