I get annoyed a little now and then on the media when it comes to their reporting. This time, it was a pity for especially young people, because in the future they may not be able to borrow more than 600% of disposable income.
In my eyes it is perfectly natural that in the most popular places it costs much more to buy. It is not surprising that a young person with a fairly low salary cannot buy immediately. I know I have written about this before and my opinion that it is not a right for us to live in the perfect place still applies.
I have never really liked big cities myself, but I would like to think of a nice house on the rocks on the west coast. However, something that I am not even close to being able to afford, which I do not intend to whine about either. Maybe there will come a time in the future when I can afford a living of this kind, something I have to work towards not whine about that I can’t get now.
When it comes to housing, it is the situation that accounts for the largest part of the costs. If you do not have the money then you simply have to move to a place that is cheaper. But in Sweden, it almost feels like there is some unwritten law that it is very naughty to force people to commute.
I myself sometimes watch the English programs with people who want to move to the country, and then we often talk about having commuting times of 1 ½ hour or something, something they don’t seem to whine about. According to surveys I can find, the average time is 67 min (workers) and 73 min (students) that Japanese residents around Tokyo spend on commuting every day.
As far as I can see, there should be no major problems in finding a place to live from Stockholm. Now I am not a professional in this area of the country or so but what I can see is there, for example, a townhouse (141 sqm) in Vallentuna that looks completely okay (ie you do not need to renovate) that costs just under the million. Sure, there is a rent, but you can probably expect that.
So there are homes that are not too far away and I find it hard to imagine that it would be worse in other parts of the country. So I do not think it is a pity if people with lower incomes get to go a bit, but that is what you can expect when you take the first steps on the housing ladder.
So there may be a requirement that says that one must not borrow more than 600% of their disposable income, I do not think it sounds strange when you think about it a little. In the article, they had interviewed a manager at a bank, which I unfortunately do not remember who said they already had rules that say they do not approve by more than 500%.
If we think a little about how much 600% really is, then you get a little scared. So it would take 6 years to repay a mortgage, which may not sound like a particularly long time. But now we are talking about income after tax which is nowhere near what you can use to pay back.
General housing costs and food, for example, are things that are difficult to avoid. If you eat for USD 2,000 a month, this would only extend the time by 0.8 years. Say that you manage to put aside $ 3,000 each month to be used to repay your loan, we will have 35 years to repay your maximum-average payday loan.