Generation rent

Generation rent is a generation of young adults who, because of high house prices, live in rented accommodation and are regarded as having little chance of becoming homeowners.

Doesn’t this feel like flushing money down the toilet?

First time buyers in England are not having it easy.

Before they can get a foot on the property ladder they may spend many years renting and end up spending more than 50,000 Pounds in rent.

Figures from the Association of Residential Letting Agents show that tenants will be renting for an average of 13 years and in 2015 spent 22% of their wages in rent. Continue reading Generation rent

Property transactions costs comparison between the US and Europe

I recently read an article which indicated that transaction costs for US property average between 9 and 10%. This seems staggeringly high to someone like me who is more used to costs around 2%.

The seller has to pay the majority of the US transaction costs and the largest part by far is the Real Estate Broker fee which is typically 6%.

Similar costs in Northern Europe are between 1.5 and 3%. Other overall costs are pretty comparable and consist mostly of taxes and legal fees.

Continue reading Property transactions costs comparison between the US and Europe

Property tax in China – When and how it will affect the rest of the world?

Introducing a property tax in China has been an ongoing conversation for a few years now.

Up to recently it looked like 2018 was going to be the year of introducing property tax in China but now it appears it may be delayed until 2019.

As we know the number millionaires in China has seen a surge in massive years and they may soon overtake Japan with the most millionaires in Asia. Continue reading Property tax in China – When and how it will affect the rest of the world?

Property viewing – what to look out for when buying a home?

Property viewing is vital to check on the construction quality, property boundaries, and energetic condition. When you like to buy a house there are a lot of things to check and consider.

Quality of life is the most important goal when buying a home. To make buying a home a worthwhile investment in the future, you need a cool mind and ideally the advice of an expert.

Property viewing is of immense importance.

You get a first impression of the property already when seeing some photos of it. But this can never replace a real property viewing. You would not be able to see the smell or see the noise of a nearby road on the photos. Continue reading Property viewing – what to look out for when buying a home?

Using a property instead of a pension – is it wise?

My trigger for this is a recent article I read . It explained that in the USA you can tap into your pension pot to buy an investment property without any penalties (called the 401k in the US).

This is not something that can be done across most countries within Europe. But you can make a decision not to put money into a pension and instead buy an investment property.

This effectively means the decision needs to be made much earlier (i.e. before you start putting money into a pension), intentionally not put money into a pension and instead build up a pile of cash that you will use for a property purchase. Continue reading Using a property instead of a pension – is it wise?

The lack of a single European Property Website

Most countries have a main property website or two that covers the whole country.

The US also has a couple of major sites which appear to cover the all states (www.realtor.com being the one I have used).

One thing that seems to be missing in Europe is a joined up property website.

One that  summaries all properties for sale throughout the whole European area.

Continue reading The lack of a single European Property Website

Why don’t most Germans buy their homes

I was recently speaking with a friend of mine from Germany who told me that most Germans never actually buy a house but rent for life. This quite surprised me so I looked at the stats and it is true.

With an ownership rate of just 41% German people are almost the lowest in Europe (just Switzerland coming in a little lower at 38%).

Coming from Ireland where owning a home is almost a rite of passage this appeared quite strange.

Ownership rates in Ireland is almost double that of Germany at over 81%. So why the difference between these two developed countries in Europe? Continue reading Why don’t most Germans buy their homes

Property Depreciation and why Europeans have never heard much about it!

Here is an interesting thing I realized recently as a result of living in the US. In the US property depreciates. As a result you can write off the cost of the depreciation against rental income (typically over 27.5 years).

This deduction is not possible for those living in Europe. Why the difference?

Is it because of differing building standards. Generally more buildings are timber frame in the US verses block build in Europe thereby affecting their lifespan? Continue reading Property Depreciation and why Europeans have never heard much about it!

Should I become a Landlord?

After writing many blogs stating the advantages and disadvantages of being a Landlord it seemed natural to talk a little about whether it is a good idea or not to become one in the first place.

There are several factors that this depends on.

The first might seem a surprise but I think it so important: your age! Why might you ask? Well in my opinion the job of a Landlord needs energy. As a younger man I loved the challenges associated with it: fix this, write a reference, unblock a drain…. all the usual things. Continue reading Should I become a Landlord?

The best time of the year to sell your house

Does it matter when do you put your house for sale? Actually yes.

Property sales vary along the year usually peaking during June, July and August.

The same way birds nest during spring time it seems we are more likely to think about finding a home as days get longer and daffodils start to bloom.

Quoting Leo Tolstoy – “Spring is the time of plans and projects”.

Continue reading The best time of the year to sell your house