Construction costs are currently skyrocketing

(...) For the end of 2023, I predicted 6-8 percent. By mid-2023 at the latest, we will see a 6 before the comma. (...)

And, if we put the bottle of schnapps aside... how wrong do you think you were with this forecast? Even if your 5% offers for fixed deposits existed, that would still be far from a 6 before the comma, and we are about as far from 8% as the Middle East is from a peaceful solution to all problems.

By the way, 5% is available for fixed deposits at Banca Sistema with a term of 10 years. That is an Italian bank... whoever entrusts their money irrevocably and fixed for 10 years in the current situation... I can't help them anymore.

It doesn't matter which bank for now, there is the 5 percent interest on deposits.

The money is insured up to 100k. If it's more, you have to take a look. You can also split it. And you can cancel anytime. Then the interest is just gone. And if I get 5 percent in the long term, I can also count on that for 10 years.

At an interest rate of 8 percent, the fixed deposit would bring me more than my rental property if I sold it and then invested the money.

It's only conditionally worthwhile in Germany. The state takes nearly 30 percent capital gains tax on interest income, even if I haven't had any interest income in recent years. By the way, this doesn't exist in Italy. There the interest remains in the account at first.

There I have control over what I declare to the tax office. In Germany, the bank deducts it immediately. Everyone is a potential tax evader there.

(...) At an interest rate of 8 percent, the fixed deposit would bring me more than my rental property if I were to sell it and then invest the money. (...)

Provided that no major upheavals occur in the Eurozone in the next 10 years. Otherwise, the deposit guarantee currently applies up to 100,000 EUR. And that would mean for most investors that all interest is lost, since hardly anyone thinks that 1 cent of interest on 100,000 EUR already exceeds the deposit guarantee and would therefore be void ;)

What happens to the money in the event of an Itexit and whether you would really still have a right to terminate. You can then sue for that in Italy in the end. They will certainly treat foreigners generously in the event of an Itexit, especially investors from Germany, I am convinced of that.

And we shouldn’t drift now into the world of would-have-could-should-might-must. 8% are not in sight and even 5% currently only over, measured against the rapid pace of the financial world, almost astronomically long periods. The last major crash was just 15 years ago, and you’re supposed to tie your money up for 10 years. Absurd.

Oh yes, for completeness’ sake. 5% annually on the balance? Or 5% annually on the principal amount? That makes a huge difference after 10 years.

Moreover, according to an expert at [Welt], the construction industry is currently in a phase of consolidation and price finding. In plain English: the huts, whether existing or new builds, are too expensive for the current interest rates… let’s see when the prices are settled :p

Law on Energy Savings and the Use of Renewable Energies for Heating and Cooling in Buildings* (Building Energy Act)
§ 109 Obligation to Connect and Use

Municipalities and municipal associations may make use of a provision under state law, which authorizes them to establish a connection and usage obligation to a public district heating or cooling network, also for the purpose of climate and resource protection.

I ask for a moment of attention for a paragraph in the recently finally passed heating law. This paragraph will still play a major role for many. It will be lucrative for municipalities, especially to forcibly connect densely built new housing developments to district heating networks. Then it will mean dismantling the heat pump.

Prices for district heating have already risen drastically.

For example, in Baden-Württemberg, where the Climate Protection Act already prescribes heat plans, it was found "that various municipalities or the associated municipal utilities apply the instrument of the connection and usage obligation out of purely economic interest."

According to Ebisch, it could also happen that those who install a heat pump now later fall under a connection and usage obligation for district heating, especially if uncertainty persists for a long time due to municipal plans.

District heating providers lack competition and consumer protection. Their heat production, network operation, sales, and distribution mostly lie in one hand; and the – unlike gas and electricity – completely missing liberalization here leads to non-transparent pricing.

There is yet another risk for consumers: that municipalities secure their heat suppliers against their economic risk and prescribe a connection and usage obligation for potential customers. This is enabled by the heat planning law.

Act on Energy Savings and the Use of Renewable Energies for Heating and Cooling in Buildings* (Building Energy Act) § 109 Connection and Use Obligation

Municipalities and municipal associations may also make use of a provision under state law authorizing them to establish a connection and use obligation to a public district heating or district cooling network, also for the purpose of climate and resource protection.

Please allow me a brief moment of attention for a paragraph in the recently enacted heating law. This paragraph will still play a major role for many. It will be lucrative for municipalities, especially to forcibly connect densely populated new residential areas to district heating networks. Then it means dismantling the heat pump.

The prices for district heating have already risen drastically.

For example, in Baden-Württemberg, where the Climate Protection Act already mandates heat plans, it has been found "that various municipalities or the affiliated municipal utilities apply the instrument of connection and use obligation purely out of economic interest."

According to Ebisch, it could also happen that those who now install a heat pump will later be subjected to a connection and use obligation for district heating, especially if uncertainty remains longer due to municipal plans.

District heating providers lack competition and consumer protection. Their heat generation, network operation, sales, and marketing mostly lie in a single hand; and the – unlike gas and electricity – completely missing liberalization here leads to non-transparent pricing.
There is also another risk for consumers: that municipalities secure their heat suppliers against their economic risks and impose a connection and use obligation on potential customers. This is enabled by the Heat Planning Act.

Fortunately, we live in a state governed by the rule of law and there is a legal remedy. Should a municipality impose requirements based on irrelevant considerations, a judge will certainly criticize this. How a municipality would justify a dismantling obligation for heat pumps on the grounds of climate protection would also be interesting to see.