Is Finland not actually expensive?

[Arne Bjornson]

Originally Posted by Majurius

I wonder why they require 20%? It would be more profitable to offer no down payment at all

It didn't really work out that way as we found out in 2008.

However, the 20% down payment mainly applies to condos. If you are a first time home owner buying a detached house that you can afford, the down payment is often 10%. I am not sure if there are still no money down mortgages.

[dunno what to put here]

Originally Posted by Majurius

Money and math wise renting doesn't make sense so please make a new topic or something if you are so interested about how swiss live

No need to be an ass.

How easy do you think it is to put down a deposit of 10% for your desired property if you earn not a lot?

I mean, nearly 40% of your fellow countrymen rent, so I guess there is a reason why.

Perhaps putting down a deposit immediately isn't an option for everyone. For a lot of people, ever putting down a deposit simply isn't going to happen because they work minimum wage, or are unemployed long-term, or whatever. Some people can never save up the required amount, even for a 5% deposit, because whatever money they have, disappears, for one reason or another.

There are a lot of reasons why people rent - most don't do it because they want to, but for some, it's necessary. Owning a home will never be a reality for everyone.

[Natsku]

Originally Posted by Majurius

Oh it's that hard to get a loan! Well then it's pretty obvious why many people are stuck with those high rents I wonder why they require 20%? It would be more profitable to offer no down payment at all There was only 489 foreclosures in Finland last year so somehow our banks are just better at managing risks maybe Also no bank crisis in Finland.

It's funny because in America they offer you loans everywhere you go! So for some reason you can't get a mortage but no problem leasing a car or getting bail bonds Every single store wants to give you credit

Also a big factor in subprime crisis was these "re mortaging" loans where these idiots took a second mortage on their house to buy a boat or something and got stuck up with like 10% interest rates

Oh its not so easy to get a loan in Finland any more. The bank wanted nearly 50% down when we tried to buy a house!

[cattledog69]

Originally Posted by Majurius

Oh it's that hard to get a loan! Well then it's pretty obvious why many people are stuck with those high rents I wonder why they require 20%? It would be more profitable to offer no down payment at all There was only 489 foreclosures in Finland last year so somehow our banks are just better at managing risks maybe Also no bank crisis in Finland.

It's funny because in America they offer you loans everywhere you go! So for some reason you can't get a mortage but no problem leasing a car or getting bail bonds Every single store wants to give you credit

Also a big factor in subprime crisis was these "re mortaging" loans where these idiots took a second mortage on their house to buy a boat or something and got stuck up with like 10% interest rates

It's easy to judge those people when you weren't there... I'm guessing this is your first house?

It was also always in Holland the way to go, to buy a boat or new car, when the mortgage was halfway paid for and the property value had gotten higher over the years. But they slowly tricked people into getting second mortgages before there was an over- value.
Also, one of the biggest problems was tricking people into getting mortgages higher then they could pay for, like 6 -7 times their income, which used to be 4.
I luckily didn't fall for it, otherwise I would have lost it all in 2008, but a lot of people did. And I can't blame them for it, because they made it sound like it was perfectly okay, and slowly made it the norm.

[FlorianD]

Originally Posted by dunno what to put here

So most Germans and Swiss are poor?

Or maybe they just don't care about throwing good money after bad.

About 42.5% of Germans live in their own dwellings. But about 81% of all housing units are owned by private households.

For example I live in Düsseldorf and rent my apartment here. But I rent out my detached home in Kleve, that I had inherited. It's quite common that people own houses or condos but live in a rented apartment in an other city. It's very uncommon that people sell their first house in the previous place and buy a new house in the new place they moved to. They will rather kept the first house and rent out it and will rent an apartment in the new city.