Germany Draghi Rate Cuts Are Fueling a Housing Price Bubble
With record-low costs for mortgages and savings accounts earning almost nothing, Germany is warming to real estate investing.
For decades, Germans showed a strong preference for living in rented apartments and stowing cash in the bank, but that tradition is fraying as the ECB keeps interest rates near zero.
In the past five years, housing costs in Berlin, Hamburg and Munich have jumped by more than 30 percent, prompting official hand-wringing over rising prices.
“And real estate agents are making the money of their lives.”
Brokers occupy increasingly posh offices in newly gentrified neighborhoods.
Bloomberg 10 May 2016
For decades, Germans showed a strong preference for living in rented apartments and stowing cash in the bank, but that tradition is fraying as the ECB keeps interest rates near zero.
In the past five years, housing costs in Berlin, Hamburg and Munich have jumped by more than 30 percent, prompting official hand-wringing over rising prices.
“And real estate agents are making the money of their lives.”
Brokers occupy increasingly posh offices in newly gentrified neighborhoods.
Bloomberg 10 May 2016
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