@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.
Buying a property in Germany vs investing into MSCI World
- Thread starter chris1974
- Start date
@chris1974 AI and VR will likely take care of schooling and a lot of shopping will be done online. If transport into a city is fast, then there is far less need to live inside one. Very interesting times are ahead that's for sure.
resjudicata
New member
@tiredleon AI and VR taking care of german schooling? uhu. let's see 
@resjudicata At some point? Absolutely. At the very least remote/home schooling will be accessible to everyone. The whole dynamic of cities will be transformed over the next few decades, as there is less and less need for people to interact in person or live near work.
Many people are already migrating away from cities to work remotely, I just can't see any good reason for that trend to reverse.
Also, if people don't need to be in an office in person, then why even be in the same country? Companies will hire people to work remotely for tiny wages when satellite internet is widely available in the developing world. These things are coming much faster than many of us think.
Many people are already migrating away from cities to work remotely, I just can't see any good reason for that trend to reverse.
Also, if people don't need to be in an office in person, then why even be in the same country? Companies will hire people to work remotely for tiny wages when satellite internet is widely available in the developing world. These things are coming much faster than many of us think.
@tiredleon Not likely, urbanization and the drive to luve in cities has been a major factor for the last hundreds of years (if not more). Technological advances such as TV, Internet, computers etc has only meant more urbanization and bigger cities, not the opposite.
Sattelite Internet gives bandwidth but will always have horrible delay/lag, that a due to the laws of physics (how fast a sig AL can travel). VR is a gimmic, fun but not comfy enough for long term use, even Google glass failed miserably.
People want to luve in cities, because city means every form of entertainment, shopping, services (post, police, hospital) is easy and quick to come by. Living in the country is for older people, 50+, who don't want/need activities, have few friends and no young kids.
Sattelite Internet gives bandwidth but will always have horrible delay/lag, that a due to the laws of physics (how fast a sig AL can travel). VR is a gimmic, fun but not comfy enough for long term use, even Google glass failed miserably.
People want to luve in cities, because city means every form of entertainment, shopping, services (post, police, hospital) is easy and quick to come by. Living in the country is for older people, 50+, who don't want/need activities, have few friends and no young kids.
resjudicata
New member
@chris1974 Old people don't buy properties in Germany, they sell. They buy in Spain.
@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
simmondsjames
New member
@chris1974
To add to this Frankfurt and Munich are two of the most overvalued housing markets in the world. Source from UBS.
To add to this Frankfurt and Munich are two of the most overvalued housing markets in the world. Source from UBS.
@simmondsjames Yeah, sadly 
@chris1974 This comment section is the group I'd want to hang out with, but alas Covid and a big world.
@chris1974 Sorry if I hijack this thread for a question but: German pensions depend on the size of the workforce at the time they are paid? I thought only France had a system like that where the currently working people paid for the currently retired people and that others had gone on capitalizing pension plans?
@chris1974 Interesting. Can you opt out of this retirement scheme? Some people would say it looks a lot like a ponzi scheme
In France it’s very much impossible to opt out unless you go abroad or get your money from something else than a salary.
In France it’s very much impossible to opt out unless you go abroad or get your money from something else than a salary.
@craig01
Yes and no. This is from a quick search: If you're self employed then you can decide whether you want to pay into it or not. But that also depends on what job you're doing.
Or you can become a CEO and since you're a delegate of the employer you can also opt out.
Or you become a state official. Those get a pension that is financed through taxes.
But I'm guessing that the majority of people will have no choice.
Yes and no. This is from a quick search: If you're self employed then you can decide whether you want to pay into it or not. But that also depends on what job you're doing.
Or you can become a CEO and since you're a delegate of the employer you can also opt out.
Or you become a state official. Those get a pension that is financed through taxes.
But I'm guessing that the majority of people will have no choice.
resjudicata
New member
@lukelight
What exactly qualifies as a "state official"? Do you actually have to work in the government or government-run entities count as well? (eg. universities or Deutsche Bahn..)
What exactly qualifies as a "state official"? Do you actually have to work in the government or government-run entities count as well? (eg. universities or Deutsche Bahn..)
@resjudicata Yes, you have to. People working for the Deutsche Post or Deutsche Bahn don't become state officials (anymore).
resjudicata
New member
@lukelight Okay I see, thanks.
avidreader
New member
@resjudicata Teachers are the biggest group followed by police.
http://www.beamten-informationen.de/media/img/beamtenmagazin_2011_01_s18.jpg
Source: Beamten-Magazin 01/2011
http://www.beamten-informationen.de/media/img/beamtenmagazin_2011_01_s18.jpg
Source: Beamten-Magazin 01/2011
@craig01 yes as a self-employed you’re basically opt out by default. Until you can prove you’re a self-employed on your own and not a “hidden employee” you stay out of the pension system. Some see it as a risk though I myself consider it as some sort of DIY pension, I definitely ask lower fees than any managed fund and I’m even cheaper than a low-cost ETF since I invest in single stocks