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.....
Are houses (relatively) any cheaper over there?
ReplyDeletewell.. since it's St. Patrick's Day let's look at prices in Ireland.
ReplyDeleteThe 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!
ReplyDelete