Construction costs are currently skyrocketing

  • Erstellt am 2021-04-23 10:46:58

Georgian2019

2022-04-21 18:24:40
  • #1

As I said: it was meant as an alternative or a food for thought. My sister lived many years in Hamburg Uhlenhorst by the Alster (one-room apartment), then moved to a cheaper and bigger apartment in the outskirts of Hamburg but was not happy there because she missed the hustle and bustle and the fancy scene of the city center. They then searched for over two years for a decent apartment in an in-district in Hamburg and gladly took a twice as expensive apartment on the 5th floor with what felt like 4.3 inches of paint on the textured wallpaper and pitch pine flooring in Winterhude. They now have water crates delivered because the 5th floor also has its downsides. Two well-paid jobs and groceries from the market with the Winterhude apartment still lead to no savings... but mom and dad help out occasionally... and eventually a substantial inheritance will come, which will be squandered because owning property in Hamburg still won’t be possible without tightening the belt, and in the end no wealth or savings will have been built up. The 5th floor in old age will also be nonsense, so only a more expensive apartment on the main floor will help.
 

mayglow

2022-04-21 18:59:48
  • #2
hm, somehow yes, somehow no. "Fear of missing out" isn't exactly the best advisor either. We're struggling ourselves. But just because construction costs currently seem to be running away uncontrollably, rushing headlong into something doesn't make much sense either :)
 

BackSteinGotik

2022-04-21 19:33:37
  • #3


Spending more than 30% on housing is quite feasible depending on income – up to 40% for high incomes is sometimes mentioned. The background of the "rules" is simply job security and the risk that if one of the two earners fails, the mortgage loan is at risk. Because then the installment can no longer be managed and the reserves are quickly depleted.
 

kati1337

2022-04-21 19:35:33
  • #4
Regarding price increases, what is currently driving us more crazy than anything else are actually the construction loan interest rates. Daily conditions, every week that passes you can practically write off 10-20k € over 20 years. When we started our house calculation, we had a rate in mind that was moderately higher than our old one but would have been comfortably manageable with increased salaries. That was around mid-February. Since then, the nominal interest rates have risen by about 1%. The rate has become 300-400€ more expensive. We can still manage it well, but the "comfortable ease" is gone.
 

kati1337

2022-04-21 19:39:12
  • #5
I can understand the way of thinking, but it is quite fear-driven. Our income is not extremely high (especially for the forum conditions that you often read here), yet we can easily manage the increased, expected installment (which is now beyond 30%). We have decent savings contributions in the monthly budget and still have a good amount left at the end of the month. If one of the earners fails, then at most on unemployment benefit I or parental allowance. In both cases, we could easily keep the property. Maybe there would be less left at the end of the month, and if necessary, the savings contributions would have to be reduced for as long as needed. But that would only be temporary because of the imbalance. If an earner were unemployed for so long that they fell into Hartz 4, the little house would be gone either way, right?
 

sysrun80

2022-04-21 19:39:55
  • #6


Same here. The question now is: What to do? Our plan was: demolition - new build (costs "back then" around 500k, now probably about 600k). The KFW thing cost us the contract with a prefab house builder (resolving condition). Lucky break in disguise: their behavior was utterly terrible. We’re currently dealing with a general contractor from around here who’s been showing a very positive attitude so far (after various experiences with several prefab house builders).

The question now is what to wait for – we have about 50% equity (10% stocks, 20% crypto, 70% cash). What should we do with that – I don’t really trust stocks at the moment. I’ve been riding crypto since 2014. Interest rates are rising. Construction costs are going up.

We tend to just go through with it now. As "DINKs" we can probably afford the risk. After all, we already have the land.

YOLO – we’re both already 40+ :cool:
 

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