Germany is also last when it’s about ownership in general though. Germans have pretty low net worth considering the country’s economic power because they love their Girokonto and their Sparbuch (aka money gets eaten by inflation).
But it’s also in the company’s and state’s hand. Every part of German economy is allowed to have wealth. Every part but that, who sells their work for it.
Because it’s different than the 401k. The money you pay into the Rentenkasse is converted into points which are a “promise” that you may get old-age pension someday in the future. It’s not like a saving account where you put away your money.
One of the major reasons that no one seems to mention is that renter’s are well protected by right’s and are nearly impossible to kick out. Rental contracts are usually signed without any expiry on the lease and agents are only allowed to raise rental prices every few years. People are expected to live in their rental for decades, to the point where rentals come without kitchens because people are expected to buy their own and use it for 20 years
Right. That’s one major reason not to buy real estate in Germany for renting it out. Tenants can basically destroy your property and there’s hardly anything you can do about it. There are other kinds of assets to build wealth though.
Can’t it be both? I think property in Germany is fairly concentrated, but I also don’t think the CEOs of corporations with many, many houses are renting themselves.
I think regarding the numbers in this statistic you are right. But there are people who don’t have their own property, but also don’t rent, for example homeless people or if you let your family live on your property without taking rent of them.
I looked it up and you can let your family live on your property for free through a borrow agreement corresponding to §598 BGB. It just can’t be taken into account for the tax return.
I am afraid you understood it wrong.
This map is about the percentage of people who own the property they are living in and the opposite is who is not the owner but the tenant of their home.
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Germany is also last when it’s about ownership in general though. Germans have pretty low net worth considering the country’s economic power because they love their Girokonto and their Sparbuch (aka money gets eaten by inflation).
The money of Germans is in the Rentenkasse and is not considered net worth in these studies. It’s like not counting 401k’s for Americans.
But it’s also in the company’s and state’s hand. Every part of German economy is allowed to have wealth. Every part but that, who sells their work for it.
Because it’s different than the 401k. The money you pay into the Rentenkasse is converted into points which are a “promise” that you may get old-age pension someday in the future. It’s not like a saving account where you put away your money.
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Have you tried finding a place to live in Germany? lol
One of the major reasons that no one seems to mention is that renter’s are well protected by right’s and are nearly impossible to kick out. Rental contracts are usually signed without any expiry on the lease and agents are only allowed to raise rental prices every few years. People are expected to live in their rental for decades, to the point where rentals come without kitchens because people are expected to buy their own and use it for 20 years
Right. That’s one major reason not to buy real estate in Germany for renting it out. Tenants can basically destroy your property and there’s hardly anything you can do about it. There are other kinds of assets to build wealth though.
Thanks because I was completely confused
I don’t understand still… so single property and they live there? Aka, not a landlord?
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Can’t it be both? I think property in Germany is fairly concentrated, but I also don’t think the CEOs of corporations with many, many houses are renting themselves.
Seriously it is renters vs owners, well in terms of households owning the home. Link from Eurostat:
https://ec.europa.eu/eurostat/cache/digpub/housing/bloc-1a.html?lang=en
Isn’t this the same?
If 6 out of 10 households own and actually live in their owned property, than 60% own and 40% rent.
I think regarding the numbers in this statistic you are right. But there are people who don’t have their own property, but also don’t rent, for example homeless people or if you let your family live on your property without taking rent of them.
Homeless account for 0.3% of population in Germany, that is negligible.
And you are not allowed to let your family live on your property without taking rent of them. Search for it if you don’t believe it.
I looked it up and you can let your family live on your property for free through a borrow agreement corresponding to §598 BGB. It just can’t be taken into account for the tax return.
Erlaubt ist es, aber:
It’s the same number though. 50.5 % of people in Germany rent the place they live in.
If someone owns property, but doesn’t live in their own property, they are probably renting. Or how do they live?
They live in their own property, but they own more than one property.
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I am afraid you understood it wrong.
This map is about the percentage of people who own the property they are living in and the opposite is who is not the owner but the tenant of their home.
Pretty sure it is just the map that is badly created and needs context
https://www.bankrate.com/homeownership/home-ownership-statistics/#:~:text=The homeownership rate in the,decade between 1950 and 2010.
The USA is pretty close to Europe in total %.