Is Europe's Silicon Valley a better choice than America's Silicon Valley? (apartments, to rent)

[VADriver14]

Berlin, the capital of Germany, is considered Europe's Silicon Valley with thousands of start-ups, hundreds of super cool night clubs and bars, parks, lakes, perfect public transportation, and high walkability score. German beer is $1USD per bottle. German sausage is the best in the world. Rent for 2-bedroom apartment in Berlin is around $1,200 Euro, equivalent to $1,350 USD. Rent in San Francisco and Silicon Valley for 2-bedroom apartment is $3,500 USD to $5,000 USD.

I believe Germany has a special program similar to "Green Card" for highly-skilled foreign professionals.

For the young American IT professionals who can't afford San Francisco or Silicon Valley, is Berlin a better choice? What's the catch?

[BigCityDreamer]

The San Francisco Bay Area is mainly for rich people. If you're not rich, then you're going to be living in a shack.

That's just the way it is.

[NOLA101]

Since when was Berlin considered "Europe's Silicon Valley"? It isn't even Germany's Silicon Valley. Munich is the leading tech hub in Germany (and nowhere close to Europe's leading tech hub).

Berlin is (relatively) cheap because it isn't that desirable. It's fairly poor, at least for German standards.

[viribusunitis]

I feel like Berlin is more of a start-up city. Many young and creative people go there and try their luck. Some of it works, a lot of it doesn't. If you want to have a stable life, one should go for a well-known tech company in the US or one of the bigger German ones.

[Brave New World]

Originally Posted by NOLA101

Since when was Berlin considered "Europe's Silicon Valley"? It isn't even Germany's Silicon Valley. Munich is the leading tech hub in Germany (and nowhere close to Europe's leading tech hub).

Berlin is (relatively) cheap because it isn't that desirable. It's fairly poor, at least for German standards.

I agree - Berlin is one of a number of locations in Europe that are tech hubs, however it is not by any means the Silicon Valley of Europe.

[VADriver14]

Thank you all for your comments.

By doing a little research, I've learned that more than 50% of Germans are renters. If the rent in Berlin, one of the biggest cities in Germany, is that cheap, why don't people own the property instead?

[theunbrainwashed]

Originally Posted by VADriver14

Thank you all for your comments.

By doing a little research, I've learned that more than 50% of Germans are renters. If the rent in Berlin, one of the biggest cities in Germany, is that cheap, why don't people own the property instead?

There's not much incentives to own property in Germany when tenant's rights are very generous there, and when renting the rent usually includes the cost of utilities. The culture of having your own "castle" is more of a British tradition than a German one.

[NOLA101]

Originally Posted by VADriver14

Thank you all for your comments.

By doing a little research, I've learned that more than 50% of Germans are renters. If the rent in Berlin, one of the biggest cities in Germany, is that cheap, why don't people own the property instead?

There are no tax benefits to ownership in Germany, salaries are lower in Germany than in, say, the U.S. (especially after taxes), and homeownership in Germany is generally more expensive, with more regulations.

Plus Germans don't like to borrow money. It's a cash economy and "debt" is a bad word.

[lukas1973]

Originally Posted by VADriver14

Thank you all for your comments.

By doing a little research, I've learned that more than 50% of Germans are renters. If the rent in Berlin, one of the biggest cities in Germany, is that cheap, why don't people own the property instead?

Germans often have a strong emotional relationship to the house they have built or inherited. When Germans move to an other place, it's unlikely that they will sell their own house and buy a new house at the new location. More likely that they will rent out their own house and rent an apartment at the new location.

That's for example what I do. I would never sell the house where I grow up. But I want to live in a bigger city, so I have to rent out my house and have to rent an apartment in the bigger city.

[lukas1973]

Originally Posted by NOLA101

There are no tax benefits to ownership in Germany, salaries are lower in Germany than in, say, the U.S. (especially after taxes), and homeownership in Germany is generally more expensive, with more regulations.

Plus Germans don't like to borrow money. It's a cash economy and "debt" is a bad word.

That's not correct. The "Eigenheimzulage" was probably the biggest subsidy in Germany. It has nothing to do with the income. The Swiss have certainly one of the highest incomes in the world, but they have the lowest home ownership rate in the world. Romania or Poland are relatively poor but have much higher home ownership rates.

A lower home ownership rate also doesn't mean that German individuals own less houses or apartments than for example Americans. I for example own my house, that I have inherited from my parents, but I don't live in this house. I rent out my house and rent an apartment in Düsseldorf. That's not uncommon. Germans have a much higher emotional relationship to their houses they have build or inherited. It's much less common to sell the own house and buy a new one. About 81% of all housings in Germany are owned by individuals.

I absolutely don't think that home ownership in Germany is more expensive than in the U.S. Considering the often very high property tax and the high maintenance costs in the U.S.