Construction costs are currently skyrocketing

- no or little equity, then rather forego new construction and continue to rent

Thank you for your assessment. Can you give a rough figure for "little equity"? So what would be "more than little"?

Producer prices of industrial products were 30.9% higher in March 2022 than in March 2021. As reported by the Federal Statistical Office (Destatis), this was the highest increase compared to the same month of the previous year since the beginning of the survey in 1949. In February 2022, the rate of change was +25.9% and in January +25.0%. Compared to the previous month of February, industrial producer prices rose by 4.9% in March 2022. The current data already reflect initial effects of the war in Ukraine.

Can you give an approximate figure for "little equity"?

Anything under 20% + additional costs (notary etc.) is little.

I read somewhere today that the interest rate currently rises significantly above an 80% loan-to-value ratio. More significantly than, for example, between 60 and 80%.

A 100% financing is therefore expensive, but of course you buy a little security in absolutely uncertain times and possibly avoid an also expensive follow-up financing.

Phew, the interest rates are getting worse and worse...
Example calculation: Existing property costs €550,000 + incidental costs €55,000 (approx. 10%). Equity approx. €100,000.
Financing requirement over 20 years is €500,000 (interest 2.7% + repayment 2.5%) = €2,166!!!! This is calculated nicely without a new kitchen + possible minor renovations... and after 20 years still a considerable remaining debt.
Who can still afford this?

Puuuh the interest rates are getting worse and worse... Example calculation: Existing property costs €550,000 + incidental costs €55,000 (approx. 10%). Equity approx. €100,000 Financing requirement over 20 years of €500,000 (interest 2.7% + repayment 2.5%) = €2166!!!! That’s calculated kindly without a new kitchen + possible small renovations... and still a considerable remaining debt after 20 years. Who can still afford that?

Soon no one anymore..... Prices will have to fall sooner or later. The broad mass can no longer afford a house now and those who have money don’t want a terraced house...