What is the income use for calculation? Seems low that 30%
All these statistics are utter rubbish as they are based on skewed and flawed statistics. So in particular salaries are overestimated therefore it seems it is cheap to rent in lux, which for most people it isn’t and takes easily 50% …
So Luxembourg it’s like Switzerland after all: high rents but high salaries. I really wouldn’t mind paying 1500€ for a studio if you live with your partner or friend
This map is so pixelated that I can’t even see what color Luxembourg is supposed to be. I would be very surprised if we were worse than other countries in this regard. People like to complain about rents being high here but it’s the same problem everywhere right now. Housing becomes a big problem first world countries.
The real problem in Luxembourg is how expensive buying is. Rents are ridiculously low compared do purchase prices. How ridiculous this is gets most visible on the higher end. It’s normal to rent units here which cost annually less than 4% of their market value. Let’s say >1% of this is for the kitchen and maintenance (craftsman are crazy expensive here) and most loans have still interests over 3%. So assuming the landlord doesn’t sits on the property for decades, you are effectively renting for less than the interests and maintenance costs. People always think that landlords are in it for the rent but the reality is that landlords in Luxembourg make profits on the increase of property prices.
We are landlords ourselves and we had to fight 2 years in court to get a renter out who squatted our property. The risk to rent out in Luxembourg is extremely high. There is a reason many landlords decide to just leave their units empty. My worry I have about the rental market is that housing will become extremely difficult to get in the coming years. Property prices didn’t increase over the last two years which sounds great because it makes it easier to afford them but the problem is that there are very little construction projects for rental projects starting right now because it financially doesn’t makes sense right now. Rent prices don’t cover the interests and it’s unclear how long until house prices will go up again.
If the data is good, up to date and based on average income VS average monthly rent for 100m2, one has to wonder just how EXTREME the wage disparities are in this country that the highest earners manage to increase average income data so much.
We all know that the rental market is incredibly expensive across most of the country, especially for anything over 50m2. A quick look on AtHome puts your average 100m2 rental around 2800€.
We also know that for most people, we are FAR from earning EVEN CLOSE to 6160€ (the minimum income needed for 2800€ to be 40% of your monthly revenue).
Worse part is, this is exactly the type of distorted data that comforts Banks, Landlords and Government that it’s ok to keep increasing rent and not intervene more in the housing market.
Who on earth would use the same color for the lowest and the highest value (black)?? I can infer to which category the black countries belong, but couldn’t they just use different colours so that I don’t have to guess??? Why why why why??
This map shows where housing is really in crisis. It is critical in the peripherical countries and in Poland – these are the economies that in 10 years will have great salaries just like the rest of europe. When housing becomes stupidly high, there is no alternative for hiring entities to raise salaries, a general rule. I look at this as being growth pains. Good luck to all those people
Look at Luxembourg being green because of that one guy earning 8M€ monthly.
I live in a Portugal purple area… Damn
At the end of the day THIS is the map that matters… Portugal is in the absolute trenches. Completely uninhabitable
10 comments
What is the income use for calculation? Seems low that 30%
All these statistics are utter rubbish as they are based on skewed and flawed statistics. So in particular salaries are overestimated therefore it seems it is cheap to rent in lux, which for most people it isn’t and takes easily 50% …
So Luxembourg it’s like Switzerland after all: high rents but high salaries. I really wouldn’t mind paying 1500€ for a studio if you live with your partner or friend
This map is so pixelated that I can’t even see what color Luxembourg is supposed to be. I would be very surprised if we were worse than other countries in this regard. People like to complain about rents being high here but it’s the same problem everywhere right now. Housing becomes a big problem first world countries.
The real problem in Luxembourg is how expensive buying is. Rents are ridiculously low compared do purchase prices. How ridiculous this is gets most visible on the higher end. It’s normal to rent units here which cost annually less than 4% of their market value. Let’s say >1% of this is for the kitchen and maintenance (craftsman are crazy expensive here) and most loans have still interests over 3%. So assuming the landlord doesn’t sits on the property for decades, you are effectively renting for less than the interests and maintenance costs. People always think that landlords are in it for the rent but the reality is that landlords in Luxembourg make profits on the increase of property prices.
We are landlords ourselves and we had to fight 2 years in court to get a renter out who squatted our property. The risk to rent out in Luxembourg is extremely high. There is a reason many landlords decide to just leave their units empty. My worry I have about the rental market is that housing will become extremely difficult to get in the coming years. Property prices didn’t increase over the last two years which sounds great because it makes it easier to afford them but the problem is that there are very little construction projects for rental projects starting right now because it financially doesn’t makes sense right now. Rent prices don’t cover the interests and it’s unclear how long until house prices will go up again.
If the data is good, up to date and based on average income VS average monthly rent for 100m2, one has to wonder just how EXTREME the wage disparities are in this country that the highest earners manage to increase average income data so much.
We all know that the rental market is incredibly expensive across most of the country, especially for anything over 50m2. A quick look on AtHome puts your average 100m2 rental around 2800€.
We also know that for most people, we are FAR from earning EVEN CLOSE to 6160€ (the minimum income needed for 2800€ to be 40% of your monthly revenue).
Worse part is, this is exactly the type of distorted data that comforts Banks, Landlords and Government that it’s ok to keep increasing rent and not intervene more in the housing market.
Who on earth would use the same color for the lowest and the highest value (black)?? I can infer to which category the black countries belong, but couldn’t they just use different colours so that I don’t have to guess??? Why why why why??
This map shows where housing is really in crisis. It is critical in the peripherical countries and in Poland – these are the economies that in 10 years will have great salaries just like the rest of europe. When housing becomes stupidly high, there is no alternative for hiring entities to raise salaries, a general rule. I look at this as being growth pains. Good luck to all those people
Look at Luxembourg being green because of that one guy earning 8M€ monthly.
I live in a Portugal purple area… Damn
At the end of the day THIS is the map that matters… Portugal is in the absolute trenches. Completely uninhabitable
Comments are closed.