Construction costs are currently skyrocketing

Of course not for comparing interest costs over the term. But honestly, that doesn’t matter one bit.

As a home builder, I’m not interested in what I have paid after 35 years (actually, hardly anyone looks at that), but whether I can afford the house NOW. And within three quarters of a year, we have seen a doubling of the price = the rate for the same house (assuming unchanged costs). Then it becomes hypothetical what happens over the term, because hardly anyone can overcome the hurdle of a loan contract anymore if they can’t mobilize substantial equity or significantly lower their requirements.

Rarely have I read such nonsense. The interest is the price (!) of financing. The summed interest payments result in the bank’s revenue at the end of the term. That is the money you pay so that they lend you the money. That has no intrinsic value. It’s the mentality like, “oh, MacBook costs 3,500 euros, oh well, 6% interest and I just pay my 120 euros a month.”

I’ll give you an example – house costs 300k, after 30 years you have paid 600k with high interest rates. That money YOU paid! House costs 300k, interest near 0 – you paid 300k. End of story.

The house is now worth as much as it is worth, regardless of whether you paid 300k or 600k for it. Simple economic relationships. Ouch.

If the house is worth 600k, you have made exactly 0 euros profit with it.

[RARELY READ SUCH NONSENSE ;)].

Sit in mortgage financing consulting for a few days (maybe not necessarily now, it's dead slow) and you will see that the price of financing for the customer is the installment. THAT is crucial. And not the consideration over the term. Almost no one is actually interested in that.

I understand your example. I've been involved in financing for almost 30 years, among other things. And in 30 years no one has ever told me that they wouldn't buy the house because the costs over the term are too high. That's life - no matter what you come up with.

I have actually not written any nonsense. Where exactly is it, can you please quote it. What the customer ultimately does is their business – the fact is, they pay more pointless, non-substantial interest to the bank. That's it. I wrote nothing else. Nevertheless, there will still be enough who make stupid decisions for ideological reasons – the house must now be worth twice as much at 4% interest than at 2%, to make that clear once again.

I actually did not write any nonsense. Where exactly is that, can you please quote it. What the customer ultimately does is his business – fact is, he pays more pointless, non-substantial interest to the bank. Done. I wrote nothing else. Nevertheless, there will be enough who make stupid decisions for ideological reasons – the house simply has to be worth twice as much at 4% interest as at 2%, to make that clear once again.

Basically, you are right, but that the house has to be worth twice as much at 4% is wrong.

Just venting for a moment... I had to take Meisterbafög including a loan because of the educator training (really had to, because the office would have counted the amount anyway). So far, the interest was around 1.4%. Just opened a letter... from now on 3.54%.

Oh man, I'm sorry. I hope the remaining amount isn't that high?

There will still be enough people who make stupid decisions for ideological reasons - the house just has to be worth twice as much at 4% interest as at 2%, to make that clear once again.

So basically every renter is a stupid person because they throw out money without returns (the buyer eventually owns the property in contrast to the renter)? And maybe even more than the buyer. The renter who wants to “be” a renter for ideological reasons and makes a stupid decision :rolleyes: