Construction costs are currently skyrocketing

And all those who bought/built at the low interest rates up until a year ago are also the winners. What did I have to listen to in 2019. The prices were said to be so high and expensive. And today? The house a street away from the same developer costs a slim 50% more. Where in 2019 we paid 3000€ per sqm (house with land) for 1% interest in the building area, now you’re at 4500€ per sqm. I just say, have fun building. No wonder no one buys anymore. We couldn’t afford the property today either, but in 2019 everyone was still groaning and complaining about the supposedly expensive prices. Whoever didn’t buy then really has only themselves to blame.

And all those who bought/built at the low interest rates until a year ago are also the winners. What did I have to listen to in 2019. The prices were said to be so high and expensive. And today? The house one street away from the same developer now costs a flat 50% more. Where in 2019 in our area you paid 3000€ per sqm (house with land) for 1% interest, now you are looking at 4500€ per sqm. Good luck building, I say. No wonder no one buys anymore. We ourselves couldn't afford the property anymore today either, but in 2019 everyone was still groaning and complaining about the supposedly expensive prices. Whoever didn't buy then really has only themselves to blame.

What do you mean by "only themselves to blame"? Anyone who could pay 3000 euros per sqm in 2019 was already privileged back then.

What did I have to listen to in 2019. The prices were supposedly so high and expensive. And today? The house one street away from the same developer suddenly costs a slim 50% more. Where in 2019 you paid 3000€ per sqm (house with land) for 1% interest in the development area, you now pay 4500€ per sqm. Good luck building, I say. No wonder no one buys anymore.

I have been involved for 30 years. Every year people complain about how expensive building has become. Meanwhile, the relative possibilities to build/buy have improved year by year. Only in recent years has it become more difficult – but still very affordable. Do we now also complain that TV used to cost 20DM broadcasting fees, but today you pay 150€+X for all kinds of streaming providers? Give up luxury in life and spend your money on property. Then it will work easily. Apart from that, please calculate only and exclusively with sqm prices for condominiums. House prices according to construction costs per sqm plus land, because there is an enormous leverage in the land. Whether I need land at 25€/sqm hanging dead over the fence in the East or at 4,000€/sqm in the Munich catchment area is a huge difference. If you now get a house for 4,500€/sqm including land, then that is a well affordable thing. Well planned 120 sqm is enough for a family with one child (even with two children). That makes €540k. Equity has always been necessary and so it is today. So, 20-25% equity = financing need between €400k and €450k. Currently, with 1% repayment (young people and slightly higher interest rates do not need more) and to keep calculations simple with an annuity of 5%, this results in a burden of €1,650-1,900. He earns €3,000, she €1,800 + child benefit €500 = €5,300 net per month. That leaves about €3,500 for ancillary house costs and living expenses. If that no longer works, then I don’t know either. A completely normal average family. And even with higher financing or less income, it is still manageable. Because an apartment with 120 sqm and €10 cold rent (which is partly below social rent in big cities) already costs €1,200. Renting a house in cities that are at least not only surrounded by blossoming landscapes starts at €1,500 cold as entry level. And I don’t see average families having to live on the street.

I forgot to mention that I meant a semi-detached house. And I find 4500€ per square meter already very expensive for that. And regarding the topic that being allowed to build in [2019] should also be seen as a privilege, I would like to point out that with hard work you can afford something.

I forgot to mention that I meant a semi-detached house. And for that, I already find €4500 per sqm very expensive.

Once again for you. A house is a house. It costs roughly the same everywhere in Germany. The location and thus the price of the land makes the difference. The difference between a semi-detached house and a detached single-family house is often just about 100 sqm of land. That makes the semi-detached house cheaper overall. €4,500/sqm says absolutely nothing. My car costs €50,000 – is that expensive or cheap for a car? I wish I could buy a new build for such a price where I live. Unfortunately, then only a tiny house or a shed would remain as a new build. I fear that in most regions of Thuringia, people would throw up if houses were that expensive.

And on the subject that it was a privilege to be allowed to build in Bergreifen even in 2019, I would like to note that with hard work you can afford something.

Well, that was true in 1920. In 1983 too. And besides 2019, it also applies today. But after 10 years of only falling interest rates (I even took out construction financing with negative interest rates – as a banker, not as a customer), no one is used to money having a price anymore and having to sacrifice something in order to afford something. Hard work, sacrifice, etc. – simply was not necessary in the last 10 years.

The house one street over from the same developer costs a slim 50% more.

We sold our former house for 388,000 without a realtor in October 2020. The buyers and current owners have to move for professional reasons and offered it online through a realtor for 639,000 euros about 4-5 weeks ago. Out of curiosity, I naturally check occasionally and recently saw it listed for 599,000 and now for 549,000. I am curious how much the house is worth today.