Construction costs are currently skyrocketing

Affordable housing? Noooope

And anyone who believes that real estate prices will drop is mistaken for exactly this reason. Even the worst residential area here now has €10-11 per m2 cold rent. With additional costs, that's €800-900 for a 50m2 apartment.

And anyone who believes that real estate prices will fall is mistaken for exactly that reason. Even the worst residential area here now has a cold rent of 10-11€ per m2. With additional costs, you're at 800-900€ for a 50m2 apartment.

Hmm....we'll see. When I drive through the villages here, I still see many rundown houses. The locals rarely got a chance before and surely will only get one now if prices go down and they have the craftsmanship themselves. Otherwise, sales will continue to the city dwellers, to people from NRW and southern Germans. The question then is: how many will still move up here? The heat could also drive some up here if they can't cope with it in Bavaria.... I'm curious and can imagine both scenarios.

Something different, this time from the interest rate front:

I had requested an offer at the peak of the interest rate swap (no one knows beforehand). 4.03% nominal interest was on the table. Just got a call, the bank "improved" the offer to 3.15% nominal interest with otherwise the same conditions. (100% financing of 380k with 2.5% amortization and 5% special repayment per year).

Even the two financial advisors competing for me say they have never experienced such rapid volatility in such a short time.

It almost raises the question whether it can go back up like that, stagnate, or fall a bit more. We could wait a little longer, but that feels like gambling.

The moral of the story regarding the affordability of a property: instead of a €2064 installment, now €1784. Of course, the outstanding debt is higher if we do not partially and early convert it into special repayments.

Something different, this time from the interest rate front:

I had requested an offer at the peak of the interest rate swap (no one knows beforehand). 4.03% nominal was on the table. Just received a call, the bank "improved" it to 3.15% nominal with otherwise the same conditions. (100% financing of 380k with 2.5% repayment and 5% special repayment per year).

Even the two financial advisors competing for me say they have never experienced such rapid volatility in such a short time.

The question almost arises whether it can go up again exactly like that, stagnate, or fall a bit more. We could wait a bit longer, but it feels like gambling.

The moral of the story regarding affordability of a property: instead of a €2064 payment, now €1784. Of course, the remaining debt is higher if we don't partially and early convert that into special repayments.

I think it will stagnate at 1.5% swap at least until autumn or longer. If the economic data improves, it could rise rapidly.

We also want to fix it soon. That will probably only be possible in 14 days.

It would be nice if the interest rates would at least settle somewhere reasonably. This up and down is really crazy and somehow makes you restless.

At the peak of the interest rate swap, I had requested an offer (nobody knows beforehand). 4.03% nominal was on the table. Just received a call, the bank's "improvement" to 3.15% nominal with otherwise the same conditions.

Sounds good at first and the rate is also significantly more comfortable that way! How is it going for you, did you mainly talk to one bank? Did you only request conditions there, or did you basically already have a loan offer with a contract lying around that you are now still postponing?

The volatile situation is also making me more nervous right now. At the moment, it looks like we will be able to sign a contract with the developer at the earliest in mid-September (originally, the statement was "probably August" but that has already been discarded...) and the financing situation continues to make me nervous :/