Construction costs are currently skyrocketing

2022-04-21 10:44:02

Then be glad that you live somewhat out of the way ;)

Yes, Berlin (born and raised), Hamburg (lived for over 16 years), Freiburg i.Br. would no longer be for me. Here in Saxony-Anhalt, I definitely have more purchasing power with my income, am in Berlin in one hour and fifteen minutes and in Leipzig in 45 minutes, and live amidst a World Heritage Site in the most beautiful landscape.

2022-04-21 10:59:24

We are currently comparing 20-year annuity loans with a full repayment loan to [TA loan] and [Bauspar] construct. I don't find the last option unattractive at all. From an interest rate of 3% or higher on the follow-up loan, we would be better off with it. And it offers security for the entire term. The remaining debt after 20 years with our two offers is 230k and 250k respectively. That is not to be neglected.

2022-04-21 11:00:08

The interest rate for 30 years is currently about 3.59% for 100% (instead of 1.63%) and the monthly payment is about €1,500 instead of our €900. I would not want to bear this €600 difference at the moment

I have come to similar values with different numbers. All in all, the monthly burden for a new building has increased by about 50-60% in the last 2 years. Now that’s what I call inflation! I have always been an advocate of 10-year fixed rates and paying off a lot (4-5% p.a.) Well, where we will be in 8-9 years remains to be seen.

2022-04-21 11:04:03

We are currently comparing 20-year annuity loans with a full repayment loan with a TA loan and building savings construct. I don't find the last option unattractive at all. From an interest rate of 3% or higher on the follow-up loan, we would be better off with it. And there is security for the entire term. The remaining debt after the 20 years with our two offers is 230k and 250k respectively. That is not negligible.

With the current interest rates, the TA loan construct with a building savings contract is really attractive again! We are currently still offering: 1.99% TA for 15 years and building savings contract as repayment substitute with 1.55% for a little over 13 years. I think the product will soon no longer be available. The effective interest rate is 2.58% for just over 28 years fixed interest term/loan term and 100-106% loan-to-value ratio. I bet the TA interest rate will soon be 2.45-2.75% and the building society will also increase.

2022-04-21 11:27:01

We took out a mini building savings contract about hmm 2 years ago now, just to take advantage of the housing construction premium and nothing else. In the end, we unexpectedly earned more much earlier (there are worse things ;) ), so the whole thing quickly felt like a flop. But even though the thing was not designed for minimal loan interest rates (but rather had an insanely huge optimized savings rate of about 0.1%), the loan part is currently surprisingly competitive. (Something in the 2,x% range). As I said, we never took it out to secure cheap interest rates, otherwise we would have chosen another option, but still, that part is not bad right now. Ultimately, however, the amount is much too small to really make a difference :/

2022-04-21 11:36:22

We took out a mini building savings contract about hmm 2 years ago now, just to take advantage of the housing construction premium and nothing else. In the end, we unexpectedly earned much more much earlier (there are worse things ;) ), so the whole thing quickly felt like a flop. But although the thing was not designed for minimal loan interest rates (but rather had the insanely huge optimized savings interest of 0.1% or so), the loan part is currently surprisingly competitive. (Something in the 2,x% range). As I said, we never took it out to secure cheap interest rates, otherwise we would have chosen a different option, but still that part is not wrong right now. Ultimately, the amount is way too small to really make a difference :/

My wife was talked into something similar 3 years ago, and currently it’s barely used in the drawer. I have to take a look at it tonight!

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Construction costs are currently skyrocketing

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