Construction costs are currently skyrocketing

Received the keys for our existing house today about a year ago - the loan agreement was signed sometime in January. 100% financed at 1.07% for 15 years. Seems to have been exactly the right moment!

120 sqm. Shoe boxes with flat roofs.

We have hundreds of these here in Pforzheim.. all housing estates built in the 70s but mostly with basements. And they are currently going for easily 650,000 euros..

That's right. I am convinced that even today a lot is possible if some people were just more frugal. A simple example is the famous unused streaming service subscription for 14.99 euros. Quickly using the interest calculator, 14.99 euros over 15 years at 5% MSCI World ETF means an amount after tax of 3,986.68 euros. Small change adds up. And back then, there wasn't so much nonsense :)

That's right. I am convinced that even today a lot is possible if only some people were simply more frugal. A simple example is the famous unused streaming service subscription for 14.99 euros. Quickly throwing the interest calculator into the mix, 14.99 euros over 15 years at 5% MSCI World ETF means an amount after tax of 3,986.68 euros. Every little bit counts, after all. And in the past, there wasn’t so much rubbish :)

That’s how it is. Since I (and especially my girlfriend) have been saving more consciously and simply cutting out unnecessary expenses or consumption, you realize what you can actually save.
I don’t mean not treating yourself to a steak at a restaurant on the weekend or not buying a pair of new football shoes, but the 10th winter coat, the 30th pair of shoes, in other words, all things that actually do not mean any real sacrifice.

I think for people who are closing their financing deals nowadays, it is unimaginable that interest rates could be back at 4% in 10 years. When I read here that a large sum is financed only with a 10-year fixed interest because a surcharge for 20 years would mean an increase of 0.2%... I just say: "Brave, brave, you people."

The surcharge for 20 years is actually a bit higher than 0.2%. And it really makes a difference whether you finance at 1% or 1.45%. If you repay properly, the long term hardly pays off. I calculated it for myself: I can’t fix the KfW loan for a longer period anyway, so the first 160k are fixed for 10 years. And for the rest, I got loans from the L-Bank at about 0.7%. The crossover point compared to other offers is around 3% for the follow-up financing. Sure, at 3.1%, the short term is a losing deal, but for a really bad deal we need significantly more. And now the big question is, how likely is that? I have big doubts that interest rates for 10-year loans will rise that high again in the foreseeable future without the debt being significantly devalued by inflation. The countries in Europe are simply way too heavily indebted, not only Italy and co, but also Germany. A federal bond at 4% would currently break the German state’s back. And as long as the capital market interest rate is kept low, construction loan interest rates will also stay relatively low.

What was the total interest? I would be interested.

1.82%

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