Construction costs are currently skyrocketing

I did not compare apples to pears verglichen. I merely took the same annuity as an assumption. Of course, you can increase the installment now - but the one who pays a lower installment, ceteris paribus, could naturally also use it for a higher repayment.

that the price of the financing for the customer is the installment. THAT is decisive. And not the consideration over the term.

For our first house, 260 TDM, financing with 8%,
it was really the installment (compared to the rent) that was crucial,
we didn’t even want to know what we would pay in 32 years.
260 TDM was already an unimaginably large amount, and then in Westmark :eek:

My grandmother lived in the family home for a good 37 years after the death of my grandfather. Sure, not much was done to it anymore, but a comparable rental apartment would not have been affordable. After the sale, at least 5 years of nursing home care could have been financed, but unfortunately, it ended up being only about 8 months...

That with a rental apartment would have failed miserably, because:
You don’t have to maintain the house... the rental apartment, however, you do...

I did not compare apples to pears verglichen. I simply took the same annuity as an assumption. Sure, you can now increase the rate - but the one who pays a lower rate ceteris paribus could of course also use this for a then higher repayment.

But the same annuity just looks the same. And since a) the bank eventually wants to see its money again and b) after several decades there are also renovations that come and cost money, 22 and 40 years of terms are not equal for the bank. Just like the 1% repayment is not insignificant, with that you won’t get a loan from most banks. You can calculate all sorts of things back and forth, ultimately everything comes to the conclusion that higher interest rates are shitty if you have to finance. It doesn’t matter whether you now need a higher rate or it runs for 40 years and slowly the bank becomes the landlord.

To evaluate this neutrally, an Excel spreadsheet comparing buying with renting is sufficient. Of course, not all developments can be predicted, but it is a good aid to make the right decision for oneself. I cannot understand statements that customers do not care how long the term lasts, how high the residual debt is, and what the total interest payments are, but only care about the monthly installment.

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

Yes... 18k are still outstanding. The interest rate is fixed for six months at a time. If they have increased it so drastically now, I have to assume it will go even higher.