Subject: Re: OT: Berkshire or mortgage
I am intrigued that Germany has these also

dtb, Germany has 30-year fixed mortgages because those fit our character perfectly well. The typical German of the first after WWII generations is extremely risk averse, especially in financial matters. What he craves more than anything else is safety.

This shows in our insurance policies. That typical German of old is insured against everything, has numerous policies. Whatever may happen, it won't be a financial catastrophe. Naturally that is concerns very especially the for most people greatest investment of their life: Building a house (We more build, once only, to live there for the rest of our lifes, than buy and sell repeatedly).

It shows in stock ownership too. That typical German puts his life's savings into low paying saver account, into life insurance, into government bonds => into investmens you can exactly calculate what they are worth one year from now --- but not (or only very little) into those risky stocks where you never know what they'll do tomorrow.

Same with mortgages: 30 year fixed means you are safe. As you know exactly how much it will cost you in 30 years, and know exactly you'll still have your job at BASF or Siemens in 30 years*, you can rest assured that there won't ever be a danger to lose your house. And as this has absolute priority for that typical German**, he preferred the longest running fixed mortgages available - and therefore those 30 year fixed ones were always offered and in high demand.


*That's how it WAS for that typical German for half a century, until the fall of the wall, even until nearly the year 2000. As we know that's not even here the case anymore.

**That typical German is a thing of the past too, with the percentage of people with "migration background" and their very different personalities more and more increasing. Regardless of my name (father immigrated) I feel like one of the "last man standing" --- why else would I own mostly Berkshire? 😉