[svandamme]

can't say for all of Europe with facts, but i think ownership is equally considered the basis for stable yaddiyaddi ya, and positively supported with programs for the less fortunate, such as social housing...

We have those in Belgium, and i know the UK and Holland both have some sort of systems to first offer social housing through rental, with a follow through of purchase if possible.

Holland , i know they have things for low incomes, that after x amount of time renting, you get a discount on the purchase price, not sure if UK does the same.


I do know that Belgium has one of the highest ratios in terms of people that own, instead of rent... I don't know how the situation was in the 60'ies, but as far as i can remember (i'm 32) , ownership has been the defacto route for anybody who seeks to improve ones self.

It's gotten harder recently, as prices have nearly doubled in the last now vs 10 years ago, and the demograhics are such that the traditional man/wife > buy house
is now substitute by more people staying single longer... it's a lot tougher on a single income, and more risk, i'm lucky that i make ok money, so i don't rely on the social housing market and it's offerings
But it has to be done from a social non-profit standpoint, not simply handing over a halfassed concept to the private market where the bankers can have a field day with it...
If there's one guarantee one can make, it's that banks don't care for social crap, they care a bout M.O.N.E.Y., especially the kind they can personally accumulate

There is a rental market , but in many cases the offerings are poor quality, and the rent is high.

Comparison, i rent the current place, which is a single layer flat roof, seventies house, garden and garage, big living room, and 2 bed rooms. that's 575/ month, and it get's indexed.

Now i'm looking at 680 a month for the new house, i do get taxed on ownership, but i do get refunds that outweigh that tax. True the new house will be a tad smaller, but the land ain't, the expansion is possible, and the garage is there, aside from the house

I think the true problem with the subprime, as social housing programs go, is they are not controlled by true social regulation.

Even when i go to buy a house, non social, regular mortgage, the banks are limited as to what they can offer me, how much i can loan, how far i can stretch my budget.
It still allows to borrow at a risk , if you go high, based on current salary, and then loose your job, and imho, they still allow a lot, but there is a limit by law
Also by law, is a mandatory insurance for the risk of death of the loaner.. So i somebody buys the farm the outstanding amount is covered for the relatives ...
it's about 20-25 bucks a month in my case, obviously bigger loan is bigger premium..

We also have variable loans here, but they come with a cap,
say adjustable every 5 years, with a 2% interest gap per adjustment, which imho is still to much risk for my taste, On smaller term adjustable mortgages, the cap is lower, say .4% if per year (don't use those numbers, didn't look em up). With an overal max % risk that's about the same in the long run, it just follows the market closer, so you are more sure that you will see bad adjustments, along with good ones.. The long ones, if you are lucky, will only see positive adjustments, but if you are unlucky, will bum out each time if the market just happens to be jinxed and be bad each time your adjustment comes up.

All in all, social housing does work, it allows people to build up net worth instead of building up somebody elses nett worth through rent payments. It's also a counter mechanisme for inflation, a good pension backup, and plenty other things..

At the same time, i am sceptical , about the feasibility of all this in the long run.
The old social classes and the differences between them have faded somewhat since the 2 big Wars, mankind has been on a sugar rush since (or should i say oil-high).. Using up resources, economic models that are all based on growth and more growth, not accepting a status quo... We now have 2 billion more people on the planet, since i was about 10 years old, that's 1 billion per 10 years. Yet no new land has been discovered, no new resources are added...

Said it before, i'll say it again, it cannot go on forever, this economic crisis is just a burp, the real indigestion is yet to come... probably in 10-20 years or so..

I want to own land, and be as independant as possible, this is a step in that direction.

IF there ever comes a point where things get more problematic, i'll be able to at least grow carrots , onions and potatoes, couple of chickens rabbits, and maybe a hog in the garage..

Anybody who's renting, in a big city appartment, would not have such options,
at best they could find some patches of land to muck about, if it's one of those appartment blocks with grassy fields in between... But even so, how do you protect your crops if they are in public??

I got my bases covered as good as i can for my position, ideally i would want more and better parameters, but it's a big step in the right direction for me, either way, plan for the worst, hope for the best...