Construction costs are currently skyrocketing

Umm the interest rates 8 years ago were around 2.5% for 10 years. Now we're already at 4 and it will probably go even higher in the next few months... Also, I personally know 2 couples (now families) in my circle who took out houses around the end of 2018 for 5 years! because they were betting on further falling interest rates... They were right for the first 3 1/2 years, but now their facial expressions are unfortunately more serious when you meet them.

These 5-year variants are really crazy now...

but the thing with the interest rates 8 years ago -> Of course there are tight-financed loans. That's why you shouldn't do that. But with a healthy financing, hopefully the outstanding debt has shrunk significantly. Maybe an original plan with significantly higher repayment at the same or lower rate no longer works. But no one is really losing sleep over that, right?

And yesterday, an old man rang the bell here who lived here as a child from 1945 and wanted to show the houses of his wife - his wife was also bombed out as a child. He said that in the terrible winter of 46/47 they at least got wood briquettes through the employer, while people froze to death in the houses opposite. Where the rabbit hutches stood, which served for meat supply.

That brought me back down to earth very quickly, because shortly before I had been thinking how sad I was that we could not afford the long-awaited flight holiday again this year. We are just way too spoiled.

These 5-year variants are really intense now... but the thing with interest rates from 8 years ago -> Sure, there are those tight-to-the-edge financings. That's why you shouldn't do that. But with a healthy financing, hopefully the remaining debt should have shrunk significantly. Maybe an original plan with much higher repayment at the same or lower rate no longer works. But nobody lies awake worrying about that, right?

What even is a healthy financing? It seemed to me that especially from 2018 onwards EVERYONE suddenly wanted a house and GOT one too. The banks distributed loans to everyone without hesitation... And I don't think everyone financed as healthily as maybe 90% of this forum :D Sure, the debt amount at the follow-up financing is lower, but ancillary house costs/renovation costs have exploded in recent years, not to mention food and fuel (diesel was at 1€ back then). So 4% is already a statement, but if it heads towards 5%, it gets really interesting. As I said, the fact that there are suddenly 500% more existing offers than a year ago is already a very bad sign for me...

I would never have had the nerves for 5 years. We fixed our 2.54 in April for 20 years because everything else was too uncertain for me. We also had a 15-year fixed interest rate with the first house, and I would have preferred a longer term there too. However, back then the discrepancy between 10/15/20 was greater, so it seemed uneconomical to us.

We financed at 2.3% in 2017, which was not a good interest rate at the time because of only one income (but we were glad to have found a bank at all). We fixed it for 15 years, which we are now incredibly glad about.

This tool rental story also exists here in town (Bibliothek). But I also believe that a lot here is about neighborhood help. We borrowed a crazy amount of stuff from acquaintances and neighbors when we were working on the house. Nice neighbors are priceless The office has now also opened a Digital Center where you can borrow various things or they are available there. Among other things, also a 3D printer. And a few kilometers away, there is a fully equipped auto repair shop that you can book to work on your own car (it has been around for a very long time) So ideas and offers are already available.