[jaabe]

In Denmark where I live you can loan 1 million Danish kroner at around 5k each month. A decent downtown apartment in a bigger city or a house in the suburbs is 2-4 million. Renting the equivalent is 10-15k, and with renting you obviously skip a lot of the maintenance cost and taxes. On the flip side loans are tax-deductible, meaning you actually don’t pay 20k to borrow 4 million, you pay 12k.

It can still be cheaper to rent, at least if you look at the small scale. Because in 30 years, those 4 million will be yours while people who rent will still have nothing. It’s also risky, because maybe those 4 million will really be 1 million.

Over all, owning real estate in a safe location is always going to be much better than renting. At least in Denmark. Hell, if you can manage to buy around 15-30 lower-cost apartments in a university city and rent them out, you’ll be able to pay your loans and have enough spare in passive income that you never have to work again.

[Bombthecat]

I doubt that the house would be 4 million. Thanks to reducing population, increased building and housing. Plus who knows how the weather will be, I'm not sure that owning a house is the right thing in 20 years.

[scirocco]

"Buy land, they're not making it anymore"

- Mark Twain

[mapleoin]

The problem is we've started deleting it now.

https://en.wikipedia.org/wiki/Sea_level_rise

[Aeolun]

This is perfect. It’ll make my land worth that much more!

Just have to be careful to only buy land 2.4m above sea level.

[jpindar]

If you choose the right spot, it'll become oceanfront property!

[chrisco255]

Yeah hope you plan to hold for 100 years.

[openoi]

Humans build houses with their children and grandchildren in mind. Holding to land for 100 years and longer is not that an uncommon thing.

[ahje]

When I lived on Amager about six years ago, the prices were definitely around the 3-4 million mark in the suburbs. Prices fell somewhat once you got out of Copenhagen, but it was still ludicrously expensive.

Are you saying the prices droppped sharply the last 5-6 years?

[jaabe]

No.

But I probably should have been more clear. I mean, first of all, there are more cities than Copenhagen. I have a 3 room 92m^2 apartment that is 15 minute walking distance from Aarhus H that cost us 2.2 million. Secondly, I’d personally call a place like Valby “downtown” Copenhagen even though it would probably be more correct to label it surburbia like you do.

[ahje]

I wouldn't call Valby suburbia, although it'd definitely a suburb. The real Copenhagen suburbian hell start out at Kastrup, Glostrup, Ballerup, Lyngby and thereabouts.

Of course, there are other Danish cities than Copenhagen, and prices do vary. The parent comment I replied to simply stated that there are no 4M DKK houses, which simply isn't true.

[oblio]

Denmark's population went up by more than 15% in the past 30 years, FYI :)

[roland35]

That is interesting loans are tax deductible in Denmark, I always thought that was just a US thing! From my understanding of the new federal tax law though, the higher standard deduction makes the mortgage tax credit less feasible for most people.

[jbarberu]

Nah, it's the same in Sweden :)

[dagw]

Only 30% of your loan costs are deductible in Sweden.

[ahje]

Ditto in Finland. Nordic thing I guess?