Expensive cars in public housing
As I’ve mentioned before, I’ve been looking to buy a car. I’ve test drove a few, haven’t found anything I’m “excited” about yet that’s in my price range. Isn’t it funny how once you get interested in a particular car, you suddenly begin to see that car everywhere on the streets, as if they all magically appeared there one day? It’s spooky.
What’s with all the expensive cars sitting in the parking lot outside public housing projects in Finland? I went to show my buddy this new car I was testing, he lives in public housing, his lot was full of new Mercedes, SUVs, Volvos. And I don’t mean one or two, I mean ALOT. They’re easily paying 600e/month a minimum for that automobile…and living in subsidized housing. Buy a smaller car and suddenly you have enough to support yourself and for a mortgage. (I think I’m finally turning into a Finn after I’m scrutinizing neighors’ cars)
The same phenomenon happens in the U.S. – when I was living in the innercity of Baltimore, you’d see rows and rows of SUVs parked outside houses that should be condemned. Fortunately or unfortunately for them, the banks may not always give you a loan, but car salesman will happily give any fool a loan.
Who wants bigger house? Who wants to pay loads of money for heating?
Comment by Finn — Fri, May 5th, 2006 @ 1:07 pm
Maybe you find a big enough comping car to live in there as well. then you can park it in the most expensive areas of Helsinki and tell everybody that you’re living in Westend, Kuusisaari or Katajanokki…
Comment by Ragnarök — Fri, May 5th, 2006 @ 1:43 pm
It seems to be a worldwide phenomenon. Two years ago, while visiting Croatia, I noticed that the houses were run-down and sorta crappy, but cars and clothes were very nice indeed. The first thing most people do when they get extra cash is buy a car and new clothes.
I wouldn’t buy a car. I’d get me a spiffin’ new green Vespa.
Comment by Anzi — Fri, May 5th, 2006 @ 3:10 pm
There is a house near me that is small and needs a ton of renevation work. Taking up almost all the space in the front yard is a new black hummer. He has to park it across the front of the yard because it doen’t fit on the driveway.
Comment by Fred Fry — Fri, May 5th, 2006 @ 3:21 pm
You don’t necessarily have to be a displaced puliukko to live in a council housing project in Finland. I lived my first 16 years in such a house and there was a police constable, a local sourcing manager for a lumber company, a teacher, a nurse and the secretary to the “mayor” living in the same house. At HKL, many of my workmates had an apartment at Porvoonkatu, Koskela or Siilitie, provided by the Stadi of Helsinki.
Comment by antti (the redneck one) — Fri, May 5th, 2006 @ 3:36 pm
Try this car Jet powered VW
Comment by winter — Fri, May 5th, 2006 @ 4:07 pm
I lived my first 16 years in such a house and there was a police constable, a local sourcing manager for a lumber company, a teacher, a nurse and the secretary to the “mayor†living in the same house.
Why do our tax money need to be wasted on them so they can buy fancy cars and go on fancy vacations, when they have the means to support themselves?
Comment by Phil — Fri, May 5th, 2006 @ 4:24 pm
8. There must be some misunderstanding here: “…our tax money wasted on them…”.
There is tax subsidy for people who “own” (= bank owns) their house.
Comment by jtp — Fri, May 5th, 2006 @ 6:09 pm
Read OECD’s latest survey on Finland:
Nearly three-quarters of Finland’s population is eligible for social housing programmes and even relatively high income earners live in government subsidised housing. Limiting the eligibility to social housing would save money, with probably little implication for social objectives, while stimulating the private rental sector. The housing allowance system should also be reformed. The magnitude of the allowance should be linked to the average rent in the region, rather then the actual rent paid, which would reduce the cost of the scheme and allow households to choose the quality and price of the housing.
http://www.oecd.org/document/52/0,2340,en_33873108_33873360_36551092_1_1_1_1,00.html
Comment by Ragnarök — Fri, May 5th, 2006 @ 6:12 pm
“Why do our tax money need to be wasted on them so they can buy fancy cars and go on fancy vacations, when they have the means to support themselves?”
Look at the big picture. That was a small municipality with limited number of apartments on free market. People sticked to their country houses, built by their great grandaddy. Now if you moved in, you built your own house, but at that time, the bank loans were hard to get and if you crossed the income limits for an ARAVA loan, that’s it then. But with a housing project, the municipality could get some decent tax payers to move in and the project could almost pay itself back.
Of course, the times are different now, but I’m not sure, whether we are actually subsidizing the housing project denizens in big scale, as they pay taxes too and might otherwise commute from some other city, if they didn’t have that apartment.
Comment by Antti (the redneck one) — Fri, May 5th, 2006 @ 6:14 pm
I heard somewhere that you can buy apartment from city after living in it for some time. Not sure about this, but if this is true then many of them are owners of that apartments.
Comment by Belino — Fri, May 5th, 2006 @ 6:16 pm
What’s with all the expensive cars sitting in the parking lot outside public housing projects in Finland?
Well, I live in public housing (not the city, though) and drive a new car. (The payment is about 600 EUR/month). You really need to put things in perspective. Just because you can afford a new S-class Mercedes doesn’t mean that you can afford an apartment fit for humans in the Helsinki area nowadays. I’d get about 8-10 cars like I have with the cost of an apartment I’d be willing to live in (I’ve had enough of east Helsinki for one lifetime).
As for subsidies for tax money, the point is kind of moot these days. The interests of the ARAVA loans were subsidised. While rents for those flats used to be practically free, now they are pretty close to market rents. I suspect that the city is actually making money with most their flats.
I see public housing as a practical buffer against market failures such as the current housing bubble. While you’re gathering collateral for purchase during a more optimal time, why not drive a nice car meanwhile instead of those rustbuckets you always complain about?
Comment by Freeridin' Franklin — Fri, May 5th, 2006 @ 7:12 pm
Phil, you’ve gone Finnish. Don’t worry about your neigbours. Go out and DO SOMETHING with your life, rather than live it consumed with envy
Comment by Finnish honesty — Fri, May 5th, 2006 @ 8:55 pm
Fortunately or unfortunately for them, the banks may not always give you a loan, but car salesman will happily give any fool a loan.
Yeah, i remember all sorts of commercials on channels in Houston from these small dealerships who are willng to sell you a car without a credit check.
Comment by gopha — Fri, May 5th, 2006 @ 9:48 pm
Yeah, i remember all sorts of commercials on channels in Houston from these small dealerships who are willng to sell you a car without a credit check.
Yeah, i remember all sorts of commercials on channels in Houston from these small dealerships who are willng to sell you a car without a credit check.
Yeah, just because you don’t have a 150 year mortgage, you’re bound to have bad credit. How VERY Finnish of our dear Phil.
Comment by Freeridin' Franklin — Fri, May 5th, 2006 @ 10:05 pm
#15
What I meant to quote in the first paragraph was
Fortunately or unfortunately for them, the banks may not always give you a loan, but car salesman will happily give any fool a loan.
Comment by Freeridin' Franklin — Fri, May 5th, 2006 @ 10:07 pm
“Why do our tax money need to be wasted on them so they can buy fancy cars and go on fancy vacations, when they have the means to support themselves?”
I live in a council house so I could take this personally, but I’ll just put it down to your ignorance. Just because you rent from the city rather than a private landlord doesn’t mean you don’t pay commercial rates. I have a secondhand Focus – is that too bling? Would you like me to go for something less ostentatious?
Comment by Toby — Fri, May 5th, 2006 @ 11:22 pm
I lived in a Vantaa “council flat”. It was a terrace with a garden. And it was occupied with “regular people”. And my rent was so big that I rather bought my own as paying mortgage was cheaper. The city is not “being a charity” with the council flats. Granted, the City also pays some peoples rents, but thats another pocket the money comes from.
Comment by Hank W. — Wed, May 10th, 2006 @ 1:57 pm
Please spare our planet of one more car!
Comment by Yuri Belov — Fri, May 12th, 2006 @ 3:00 am