The Great Big Boy
A great big boy has written to me. One of the people aged twenty-thirty who take advantage of their parents’ house like a hotel and use their pensions for handouts. He has sent me a letter for the employee Minister Padoa Schioppa. To buy a house this big boy has to first pay 12,800 Euro in taxes, for the notary and to get connected to utilities. The State gives him no help.
An idea for our employee to be included in the Finance Bill: eliminate the taxes on the first house, the local property tax on the first house, the costs of a notary (for the official documents it would be enough to have an official of the town hall) and on getting connected to utilities.
We already pay its weight in gold for water, gas and electricity. Let the connection be at the expense of the company that has the concession and ENEL, who are making enormous profits on essential needs.
”Dear Minister Padoa Schioppa,
I am a young man aged 30. I work as a labourer and I live in the outskirts of a big city and oh dear, I still live with my parents. The other day I heard your words on the TV. And I immediately identified myself as one of those whom you described as a “great big boy”, those thirty year olds whom you would like to “send out of the house”. I said to myself. “Great! Minister, you are right!” Thus I went off to my bank to get a mortgage. “Great! Minister, finally I’ll have my own house!”, I thought!
I earn 1,140 € a month plus a 13th and 14th month, which if they are spread out over 12 months guarantee me a monthly income of 1,330 €.
Given that the monthly repayments cannot be more than 1/3 of the income, I can allow myself repayments of 443 € a month.
With this repayment I can get a mortgage of € 85,850 Euro over 30 years (if I were to wait a bit longer, given my age, they wouldn’t give me a 30 year mortgage… Great! Minister, thanks for getting me to hurry!)
With my great calculations in my pocket, I decided to go straight away to a notary, to find out the likely costs of buying a house.
From the 85,850€, in fact I have to take off: - about 4,000 € in taxes for the purchase “just” 4,000 € given that it is my First House (Great! Minister, thanks)
- about 3,300 € for the Notary for the purchase
- about 3,300 € for the Notary for the mortgage
- about 3,000 € for connecting to the utilities water, gas and electricity
Making a total of about 12,800 €
OK that leaves me with 73,050 € for my little home!
I have to furnish it, obviously. I can’t be sleeping on the floor… So I went off to a furniture shop and there are lots of them. For now, I’ll make do with a kitchen, a table and 4 chairs, a two person sofa, a table for the TV, a big bed, a wardrobe and two bed-side tables…. The bare minimum. I know what I’m like. I can adapt.
7,500 € if I put the furniture together myself! Well… I thought it would be worse!
I’ve still got a good 65,550 € for my little house. That’s still 138 million of once upon a time! (Great! Minister, thanks)
I burst into an estate agency, the moment has arrived….
With 65,550 € they tell me I can buy:
- 2 garages measuring 28 m2. in the sub-basement of a condominium of 16 floors
- 2 large rooms (not adjoining each other) each measuring 21 m2 in the semi basement of the adjacent condominium.
For the smallest and cheapest home – a thirty year old two room place measuring 55 m2. on the first floor of a building that is 18/20 km from the city - I would have to spend 110,000 € !
I’m off home, Minister, back to my parents’ home, obviously!
I’ve done some quick calculations: if I’m to afford that two room place, I would have to :
- get into debt for 53 years, so that I would be making the final payment at the age of 83 (given that I’d get there)!
- or I’d have to earn 2,000 € a month!
Great! Minister, thanks!” A great big boy.