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@katescreates Yeah everything is pricy now, even MSCI World, but at least it is the whole world economy in one basket, so to say. And German best days are probably behind

@britmark I agree with you. However if (hypothetically) property will bring higher returns, maybe it will be worth it for some people

@craig01 Afaik, no, if you want to live here, you need to pay it. Maybe it is different if you are self employed or something. And yes, it is a ticking bomb...

@craig01 I am not a big expert in this topic, but as far as I know, yes, people who work now pay for retired. And in 30 years due to a demographic shift retirees will get 50% less money if working people will pay the same rate...

@simmondsjames Yeah, sadly :(

@resjudicata This is my understanding as well, so it looks like expanding older generation will be selling their properties in cities to go to live in more affordable places like Spain

@tiredleon Good argument! But cities are sexy not only because of jobs, but also malls, schools, cinemas, etc. This will be harder to find in completely rural areas. So I expect growth of middle-size cities which have a good balance of infrastructure and price.

@resjudicata It is not about political correctness, it is about facts. For example, blue card has a requirement of university diploma and 55k yearly income, whereas average german income is only 46k. I am not saying that all immigrants hold a blue card, but it might be not that bad as you...

@resjudicata Have you seen some statistics on how much immigrants earn compared to the local population? In my understanding Germany is welcoming high qualified workers with decent salaries (some categories earn even more then local population).

@resjudicata Why not? They are driving the demand, thus prices. And why trashy apartments?

@vassoc Good point. Do you think it was mainly retail investors buying properties because of the low interest rates?

@resjudicata If not immigration then what was pushing the demand for properties for the last 10 years?

@resjudicata Yeah, it looks like average long term property price increase is the same as inflation, but recent developments in Germany is very different due to some factors (huge demand due to big immigration inflow, low supply due to government regulations, etc). So I am trying to project how...

@icxc What about Berlin? I guess all or most of startups are there?

@resjudicata There is a nice book by Geoffrey West called "Scale". There he explores the effects of scale on different things: organisms, cities, etc. One of the things he has found is that the bigger the city, the more it is driving innovation and economy in general and the more well-off are...

@resjudicata Hey, thanks for your answer! I programmed a simulator to compare RE vs ETF scenarios over 30 years and the problem is that the outcome depends a lot on the rate at which property price will grow. For example, if property price will grow 5% a year (which was the case for the previous...

Hi everyone, Happy New Year! I am comparing two investment opportunities which I have right now: buying an apartment to rent in one of German cities with 3-4% rental yield (e.g. Frankfurt, Nürnberg, Karlsruhe) investing into broad world index (e.g. MSCI World) From the first glance buying...