Construction costs are currently skyrocketing

2022-02-15 12:29:26

We have now signed for 1.1% (17 years). We are quite satisfied. Sure... in December we could have still financed with "0.xx"... When we closed the financing for our condominium in March 2011, we paid 4.55% (20 years). At that time it was said: "Act quickly, the interest rates are as low as they haven't been in a long time...". Now I can only smile... I think for the people who finalize their financing nowadays, it is unimaginable that interest rates could be at 4% again in 10 years. When I read here that a large sum is financed only with a 10-year fixed interest rate because a surcharge for 20 years would mean an increase of 0.2%... I just say: "Brave, brave, you people." Of course, I wish for all of us that the interest rates remain below 2% for a long time. However, I have not been sure of that for a long time...

2022-02-15 12:34:51

20.12.2021: 5 yrs fixed at 0.70% Mitte Februar ==> 1.42% My client doesn't really find that funny...

2022-02-15 12:35:22

We have now signed for 1.1% (17 years). We are quite satisfied. Of course... in December we could still have financed with "0.xx"... When we completed the financing for our condominium in March 2011, we paid 4.55% (20 years). At that time it was said: "Grab it quickly, the interest rates are as low as they haven't been for a long time...". Now I can only smile... I think, for the people who conclude their financings nowadays, it is unimaginable that interest rates could be at 4% again in 10 years. When I read here that a large amount is only financed with a 10-year fixed interest rate because a surcharge on 20 years would mean an increase of 0.2%... I only say: "Brave, brave, you people." Of course, I wish all of us that the interest rates stay below 2% for a long time. However, I am no longer sure of that for a long time...

Congratulations on the interest rate first :) Comparing 2011 and today is really impossible. The market will collapse if interest rates rise to 3-4%. Unfortunately, I also know a few people who took out financing for 10 years with partial repayment rates below 2%...

2022-02-15 12:39:14

When I see what rent is now being charged for new buildings vs. 5 years ago... a 30% increase is hardly enough. People in old houses with high heat energy demand, sometimes still with electric boilers, are probably just as hard hit by the recent energy price shock. Some now pay 350€ or more instead of 180€ as a gas advance payment.

If interest rates rise to 3-4%, I believe it will not only get tight for many property owners, but also for many states. Probably 2.5% is already enough.

2022-02-15 12:50:54

Well, that is still very, very low. Especially if inflation persists. I would only talk about "bitter" from > 3%.

But unfortunately not in connection with the increased purchase costs. Realistically, almost no one could afford today's house prices if interest rates were at 3%. As long as interest rates and housing costs are not considered together, it is completely pointless to discuss absolute levels.

2022-02-15 12:52:27

On January 28th, Schwäbisch Hall offered 100% loan-to-value and 10 years fixed standard condition at 1.8%, today new condition 2.35%. 100% loan-to-value and 30 years fixed interest rate 3.2%. And this is only anticipated because the ECB is announcing interest rate hikes. Those who have only fixed the interest rate for 10 years to save 0.2% will have to reconsider... despite inflation and possible salary increases over time. We have sold our customers almost exclusively the maximum permissible fixed interest rates.

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Construction costs are currently skyrocketing

Kati2022

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