Construction costs are currently skyrocketing

They wanted to raise the price plus the surcharges despite the price fixing.

Does the surcharge still have to be paid? I thought it was canceled today. There is also supposed to be a gas price cap.

There hasn't been any update on the interest rate chart at Interhyp for a long time. Currently, interest rates are rising again after a slight setback. 20-year 3.76%, 15-year 3.72%, 10-year 3.55%, and 5-year loans 3.54%.

Spoke yesterday with a bank broker here on site – with them it is such that construction financing no longer goes through if the borrower cannot prove that they could additionally manage a supplementary financing of 20% of the construction costs. The living expense allowances, for example, were dramatically increased, so that 70% - 80% of the previous buyer group currently fall out of the market.

Existing houses are currently hardly selling at all – in his opinion, prices have not yet adjusted to the economic and interest rate level – the process is apparently still ongoing. Up to 4-5 months ago, properties were snatched out of his hand – condition and price almost didn’t matter. Now more and more negotiation takes place, if there are any interested parties at all. He said people have become very cautious.

Do the charges still have to be paid? I thought they were canceled today. There is supposed to be a gas price cap as well.

I received the letter the week before last, back then none of it had gone through yet. The situation is, of course, different now anyway. But we will definitely get a price increase after the fixed price period expires (they wanted to increase it before the expiry). How high it will be remains to be seen.

At the moment, I wouldn't dare to take out a construction loan either, especially not for new builds. It would all be too risky and almost incalculable for me.

We financed at 2.3% in 2017. Who would have thought that this could soon be considered a good interest rate again:eek:.

Kfw-124 is now also available at 3.99% effective for 5 years and 3.78% for 10 years.

We are still interested parties in a developer townhouse project. It looks like the contracts are actually going to come through now and we still have a financing at 3.59% effective with a 15-year fixed interest rate for about a 90% financing, which we hopefully will finalize on Tuesday (we have the contract documents here, we could send them by mail, but we will submit them in person at the bank on Tuesday). The terms come from our inquiry on 8.9. (after that we had a few days to submit documents. Then there were 2-3 more requests, where they also kept pressing because otherwise they wanted to adjust the terms upwards, but we were always within their deadlines and now, as said, we have the contract with exactly the conditions from three weeks ago here). I honestly assume, if we requested conditions today with the same data, that the offer would be about a percentage point higher. Pretty crazy for a 3-week difference.

I’m also curious how it will continue with the developer regarding the other units. I believe some of the current interested parties have already fixed their financing some time ago. We were worried because the developer contract had been delayed (they did not want to make contracts before submitting a building application and the city had blocked it for a while for reasons) and we were scared that it might just fall through completely or that the developer would increase the prices and then we would have a big penalty to pay to the bank or alternatively have to refinance heavily. Others were apparently braver and simply arranged financing... it now looks like the developer would keep their promises (we have a preliminary draft and are supposed to get the personalized contract from the notary next week). In that respect, if we had dared, we probably could have financed even cheaper in mid-August, but for us it was just too risky... What else is noticeable is that for the units that have not been reserved so far, absolutely nothing has happened for weeks. I’m curious how it will continue with that.