Construction costs are currently skyrocketing

PCK Schwedt

Still belongs to Rosneft, unless a DJ is currently playing the CEO.

Leuna Refinery

Belongs to Total. Has not sourced Russian oil on the spot market for several weeks. Delivery contracts will expire at the end of the year and will not be renewed. Whether a political embargo comes or not. There seems to be a business case (North Sea oil). As simple as it is to refute your false information, it is becoming tiresome. Maybe one should stop feeding the troll.

Provided that one's own salary increases accordingly!

Otherwise, it will get tight when there is less and less purchasing power left from the net income after deducting the bank installment. And the net income is further squeezed by the state because the funds and health insurance are empty after Corona and bazookas. And we haven't even talked about a sharply deteriorating economy due to shortages everywhere yet.

Even if the salary does not increase to the same extent, the customer with a long fixed interest rate is not worse off: the loan installment remains the same.

Wages always lag behind inflation. Even in hyperinflation. That's why workers quickly ran to shop on pay day in 1923, because prices rose fivefold just an hour later.

Today's collective agreements are made until the end of 2023. Inflation rates up to then are not included. What are 3 percent wage increases per year with 7 percent inflation per month.

Which ones? IG Metall, probably the largest collective agreement, expires this year....

The crucial question is how much more tension this market can withstand before it collapses. The rapidly rising construction costs have been ongoing for over 2 years, and since the beginning of this year, interest rates have had an upward momentum, even without any intervention from the ECB, which could be described as unprecedented. Every further increase of 0.1% is the break-even point for many prospective homeowners and a nightmare for short-term financers, especially those with a high debt ratio. Our carpenter told us that although he currently has a full schedule and material is the problem, by mid/end of 2023 he expects that renovation orders will have volume-wise overtaken new construction orders. There are already noticeably fewer new inquiries regarding new construction. And until then, there is still room for price increases in the new construction segment. It is logical that the material for renovations is just as expensive. However, recently the subsidies here have become significantly more attractive again.

The concept of the single-family house (at least the newly built ones) simply does not align with achieving climate goals. We might still witness the renaissance of prefabricated panel buildings if this continues.

That is funny, because at the same time most people justify their real estate purchases with words like "Vermögensaufbau" and "Altersvorsorge." Two topics where the return should be the focus and not the feeling. On the other hand, people also diligently pay into Riester or private pension insurance policies that definitely do not bring any returns...

For my part, I have calculated that with a small installment increase to €2000 I have absolutely nothing to fear. Also not at 7-8%, although I could certainly afford a much higher rate then. The key to security is controlling the remaining debt, and you achieve that through equity and amortization. A long fixed interest period is only a mediocre substitute because it only protects against interest rate risk. But if most of the bricks belong to me and not the bank, I am also better protected against occupational disability, etc., where a fixed interest rate does me absolutely no good.

"Vermögensaufbau" and "Altersvorsorge" do not imply return optimization nor do they exclude a "secure" financing with initially poorer conditions and a fixed interest rate over the entire term from building wealth or retirement provision.

Even if the wage does not increase to the same extent, the customer with a long interest fixation is not worse off: the loan installment remains the same.

Nominally, I agree with you - but: if the rest of the salary loses so much purchasing power that it is no longer enough to maintain the property because people still have other needs, then what? Somehow the house has to be heated, you have to get to work, and there has to be something warm on the table. The consumer loan wants to be paid off every month, the hair cut and the water bill also have to be paid. Then what? Just take a look at many financial plans here; many people expose themselves quite openly regarding all this in the financial threads, and especially in the first years after building the house it is often quite hairy.