Comment by jaabe | Hacker News Reader

Comment by jaabe | Hacker News Reader

Parent Full thread

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.

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.

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

- Mark Twain

The problem is we've started deleting it now.

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

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.

Yeah hope you plan to hold for 100 years.

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

Not in the US!

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

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?

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.

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.

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

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.

Nah, it's the same in Sweden :)

Ditto in Finland. Nordic thing I guess?

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

Reply on news.ycombinator.com