Construction costs are currently skyrocketing

And after 10 years, you can exit the contract if the interest rates are lower and then increase the repayment

Whereas it must be said that it used to be normal to pay for the house twice because of the interest. Recently, money was just very, very cheap.

I think we should stop always just looking at the prices or the interest rates. Of course, interest rates have been favorable in recent years, but the houses were not necessarily cheap. Because of course, people are able to calculate their monthly installments and then bid accordingly more at low interest rates. So more or less an equilibrium is established. Right now we are at a point where we still have the old prices but significantly higher interest rates. This will adjust again in the medium term, at least in the existing stock.

I think we should stop always only looking at prices or interest rates. Of course, interest rates have been favorable in recent years, but the houses have not necessarily been. Because of course people are able to calculate their monthly rate and then bid accordingly more when interest rates are low. This more or less creates a balance. Right now we are at a point where we still have the old prices but significantly higher interest rates. This will adjust again in the medium term, at least in existing properties.

I see it differently, at least regarding the balance. The builders of recent years have just gone all out and integrated guest rooms, children's bathrooms, pantries, wellness temples, and fitness rooms... Certainly not all, but until the end of last year it was quite en vogue.

When I look at the fact that quite dilapidated houses from the early 70s were traded at >80% of a comparably sized new building, it is very hard for me to blame excessive demands. Especially in existing properties, it is also easy to justify the renovation when you want to outbid others. And of course, there are cases where too much is invested. I know one myself where all the boxes on the price list were checked, from the basement granny flat, LED spots in the stairs, fireplace, kid’s bathroom, double garage, wooden terrace, etc. Doctors and pharmacists can of course also afford such fun. But I believe what we see here in the forum is not particularly representative. In the end, many people also built because it was simply the more economically sensible alternative to buying an old house with the corresponding energy standard, small rooms, run-down bathrooms, kitchen, floor, etc., and renovating extensively.

And to be honest, building in recent years was even easily possible for the entire lower middle class, if one had the right priorities, even without personal labor. In the past, the same predominantly lower income groups did build, but only with a lot of personal labor. Until a few months ago, many could comfortably avoid that. Due to the strong rise in interest rates now, it is hardly feasible for the lower middle class to acquire a home if they do not want to provide much personal labor, as high construction costs + interest rate increase are the fatal combination.

There are studies showing that building by 2020 was unbeatable affordable in the history of the Federal Republic. The keywords why this often does not fit in individual cases have already been mentioned.

25m² feel-good bathroom, separate children's bathroom, children's rooms not under 20m², double garage, basement (if not necessary, slope foundation, I know I know...), dressing room, etc. In the 50s, 100m² was already good for a family of four, today you are almost pitied with 150m²... "With 2 kids AND a home office? That’s small..."

And my favorite topic... own work. The window fitter didn’t even know what to say recently when I asked him to please install the window sills first, whether there will be paving or not, I’m not sure yet. "But what does the paver say about that?" "I AM the paver ;)" Then he was convinced...

My neighbor paid 20,000 for a painter... and is now running after defects. The last installment of 3,000 the painter simply wrote off and no longer comes... that’s our assumption, he made his cut.

“Ordinary people” often even built their houses themselves in the past or helped with it...