Banks for 110% financing

Then just go to zvg.com, pick a district court and see what such houses fetch at foreclosure auctions. But please don't use the market value published there, rather optimistically calculate 70% of that.

HAHA...that was good Laugh of the day... Maybe that applies to the Moon or Mars. The fact is: in Germany there is currently nothing reasonable (location, location, location!!!)...only junk ends up in foreclosure! The market is basically EMPTY and DEAD! Inform yourself.

Exactly, Steffen. And that will change quickly through 110% financing.

Then just go to zvg.com, pick a district court and take a look at what such houses fetch in foreclosure auctions. But please don't calculate the market value published there, rather optimistically 70% of that.
And regarding real estate prices in general: They will decrease when interest rates rise. We have a bubble in certain in-demand regions.

You can't compare new construction costs with the proceeds from a foreclosure auction.
Either you compare new construction costs over a longer period or COMPARABLE existing properties.
And I can't recall (excluding special effects after the reunification) that, for example in Hesse, a similar house was cheaper than 10 years earlier...

There was recently an interesting article in Der Spiegel about the topic of construction cost increases in recent years. Among other things, the construction price index between 2000 and 2016 was broken down. During that period, there was a total increase of 49% concerning building costs; of this, 31% was general price increase (living costs rose by 25% during the same period), 3% due to changed norms and standards, and 15% due to requirements for energy saving.

Possible local bubbles relate more to land prices, as well as the achieved square meter prices in the multi-family housing sector in major cities.

Exactly, Steffen. And that will change quickly through 110% financings.

110% financing, planned in the long term (i.e., without interest rate binding risk for the next 25/30 years; preferably until the end of the calculated financing period) can’t change anything about this situation. Those will rather be the 10-year ones from recent times; but regardless of what the loan-to-value ratio was.

So generalizing and badmouthing 110% financing per se is not appropriate.

About peanuts: So: As a bank that provides the money and wants it secured, zvg.com is indeed of interest. I am a bit older than you. I do remember things: connections between interest rates and real estate prices. -1998. Lafontaine quits. He fails as finance minister, interest rates suddenly drop to around 4%, real estate prices shoot up, row houses suddenly cost 400,000 marks in urban areas. This value was only reached again in 2015-2016.

I think some people here are really behaving badly and are not dealing with the subject matter objectively at all. As a civil servant, you can very well rely on your income for security and use a subordinated loan to make up for the missing equity, even if it is more expensive. Why doesn’t anyone here have a suggestion, why is he not being helped, why is there bickering? I find that terrible, no one can provide solid help.