Construction costs are currently skyrocketing

Some have been waiting for years to be handed the houses that were purchased a few years ago as if they were given away. Those are the ones who think they are smarter than everyone else and always say, "I wouldn't buy a house now, just wait a few years, then the cheaply financed houses will come onto the market because people can't afford them anymore." ..

That's exactly what I always said too. By now, I don't believe in that anymore. Occasionally yes, in large numbers definitely not.

And today we received a letter saying that our gas price is DECREASING. Yes, you read that right. We are still in the fixed price period, now benefiting from the lower VAT, etc. Nevertheless, it is indeed the case that our price has actually decreased.

These are the ones who think they are smarter than everyone else and always say "I wouldn’t buy a house now, wait a few years, then the cheaply financed houses will hit the market because people won’t be able to afford them anymore"..

I just think... those who financed 8-10 years ago will have already paid down something by the time of refinancing. Young families back then may also be through the toddler/possibly single-earner phase by now. And there might have been a small salary increase here and there. Maybe there is also the possibility in some cases to lower the higher rate a bit by reducing the principal payment/extending the term. And suddenly, I don’t necessarily see a lot of financing deals collapsing now. So sure, there will be one or another refinancing that fails. And a sudden increased burden of that magnitude can hurt a lot at first. But will all the house of cards really collapse all at once because everyone financed on the edge and that "on the edge" situation never improved over the entire fixed interest period? Well, I don’t know. In that respect, I agree with you. You’re always really smarter only in hindsight. The guy who locked in his contract at the end of 2020/beginning of 2021 was called crazy by everyone because of the high costs, and now he’s probably thinking, “Thank God I did that.” Maybe I’ll regret in 2 years that we just locked something in now because everything got better much faster than expected. Or maybe it’ll stay “meh” for a long time or get worse and then I’ll think, “Well, it didn’t matter/was even better that way, at least we have something nice now.” :)

I just think... those who financed 8-10 years ago will have already paid off something by the time of refinancing. Back then, young families may have already gone through the toddler/single earner phase. And there might have been a small salary increase here and there. Possibly, one also has the option to reduce the higher installment a bit through lower amortization/longer term. And suddenly I don’t necessarily see heaps of financings failing now.

Sure, there will be one or the other failed refinancing. And a sudden increased burden of that magnitude can initially hurt a lot. But whether because of that, the houses of cards really collapse one after another because everyone financed so tightly and that "tight" situation never improved over the entire fixed interest period? Well, I don’t know.

In that respect, I’m with you. You only get really wiser afterward. The colleague who fixed his contract at the end of 2020/beginning of 2021 – everyone called him crazy because of the high costs, and right now he’s thinking "Thank God I did that." Maybe in 2 years I’ll regret that we fixed something just now because everything actually got better much faster than expected. Or it will remain "meh" for a long time or get worse and then I’ll think "well, it didn’t matter/was even better this way, at least now we have something nice." :)

It becomes interesting if the refinancing amount is higher than the house value. Then it blows up.

It becomes interesting when the refinancing is higher than the house value. Then it blows up.

The probability of this is almost zero. 10 years of rising prices, now stagnation. 10 years of repayment.

A friend of my husband actually miscalculated with the [Anschlussfinanzierung]. He bet on further falling interest rates and is now selling his rented condominium to put the proceeds into financing the house. However, it's more about maintaining the current high standard of living. No real emergency.