Tuesday, January 24, 2006

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Why is there a lottery system for real estate? It seems strange. Are these subsidized construction? I see there are apartments for sale as well (Direct Wonen's website), and prices don't seem outrageous by US standards. € 220.000 wouldn't buy more than a linen closet in New York, but it would get you a ducal palace in Wisconsin, so Amsterdam seems to lie in the middle somewhere.

Mitch (ip:207.140.21.5) 24 January 2006 - 21:46 uur

No, it's not subsidized, and very often you will have to bid on real estate. This, however, is a new building with appartments that have fixed prices, which may be why they've chosen the lottery system. It's common with many new real estate projects. I've never figured out why. BTW, interesting you should mention Direct Wonen, as they tend to rent out at premium prices. The appartments they sell have reasonable prices, thanks for that. Will check them out.

Arjan Dasselaar (ip:84.245.41.171) 24 January 2006 - 22:02 uur

Well...you could do that, of course, but then you'll NEVER get the house you want if you spend it all on booze and women (forget learning to smoke)!

foreign devil (ip:70.30.12.120) 24 January 2006 - 15:01 uur

Since the Netherlands is suffering from the very same insane housing bubble afflicting much of the rest of the world, you have just saved yourself a possible future bankruptcy. Congratulations! Wait a few years when you can buy a house or apartment at a deep discount.

LouMinatti (ip:70.241.97.118) 24 January 2006 - 5:53 uur

@ForeignDevil: What? Not learning to smoke? How am I going to blend in with the pot crowd?
@LouMinatti: I agree the house market is currently peaking. However, Amsterdam is one of those regions in the Netherlands where I'm not sure of the damage a busted bubble could inflict. After all, it is a very densely populated area, somewhat comparable to the San Francisco Bay Area in terms of continued demand for housing. (With one added advantage: Amsterdam isn't as dependent on one type of industry as SFO.)

Arjan Dasselaar (ip:84.245.41.171) 24 January 2006 - 7:53 uur

Arjan,

"It's different here" sounds just like the "this is a new paradigm" statements tech investors made to justify the stock market bubble. Don't kid yourself that Amsterdam is immune, it is just as vulnerable as any other bubble area.

Incidentally, San Francisco residents justify their bubble. They say it's different there because "everyone wants to live in California."

LouMinatti (ip:70.241.97.118) 24 January 2006 - 3:00 uur

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