Construction costs are currently skyrocketing

We also asked back in December but had not yet received a final confirmation for the property... It was about 1.0% back then... now around 2.0%

But there are relatively few options :/

Btw - from when can you write a PM? Didn’t find anything quickly

I am also really glad that all the important things are signed off for me and even the surcharges for tiles are at most in the low thousands in case of doubt. If I had to start again today, I probably wouldn’t build because it’s too expensive. 40k KfW subsidy, twice as high interest rate, construction costs 100k higher if that's enough, and then the mystery price escalation clause. I can understand every general contractor and every craftsman who no longer wants to take on the risk with the materials. But as a builder, it is now also incalculable.

Not directly the construction costs, but concerning the construction project. I signed my financing at the end of January. Monthly annuity approx. €1400.
Today, from curiosity, I requested an offer with the same values as back then. The rate with the new interest from March (almost 0.8-1% interest increase) is already at €1800+.
Only a few weeks difference. I was also lucky; with that rate we wouldn’t have gone through with it.

The interest rate increases are really enormous. However, it should be noted that with a constant initial repayment rate and rising interest rates, the term shortens or the remaining debt at the end of the fixed interest period changes. It gets really bitter if you have already reached the maximum monthly rate and then the repayment rate decreases due to the interest rate increases. Then it gets really tough.

Crazy how many can still afford to keep building despite that.

Crazy how many can still afford to keep building.

Yes and no.... In quite a few areas, you already pay a good 10€ cold rent... x 140sqm = 1400 cold... And that's gone every month. If I add 200-250 per month, then the castle eventually belongs to me too....

Worse than milkmaid calculations. People who pay such rents often do not have the necessary equity to buy something in the area.

Yes and no.... In quite a few areas you already pay a good 10€ cold rent... x 140sqm = 1400 cold... And that is gone every month If I put in 200-250 more per month, the castle will also belong to me eventually...

the interest rate increases are already enormous. However, it should be noted that with a constant initial repayment rate, rising interest rates shorten the term or the outstanding debt at the end of the fixed interest period. It gets worse if you have already reached the maximum monthly rate and then the repayment rate decreases due to the interest rate increases. Then it really gets bitter.

Crazy how many can still afford to keep building nevertheless.

In some cases, this is probably compensated by both partners working full-time instead of one part-time job. For most, there is little to cut back on in the basement / outdoor facilities / carport since the focus is already on cost avoidance.

But let's see if the wage spiral sets in this year, which would of course be helpful for financing.