Construction costs are currently skyrocketing

I will blow through my fortune. The goal is to run exactly to zero at death with burial costs.

If debtors were not buried,
cemeteries above ground would be filled with coffins.
Go ahead and get into debt, you'll be buried anyway ;)

That is a great view and attitude, but simply no longer feasible for today's generation of builders! Even if everyone wanted it

I don't see it that negatively. Paying off by 50 is tight (inflation would have to really work in my favor), but in about 20 years I definitely consider it realistic, then I will be in my mid-fifties. The prerequisite for this, however, is not a constant rate from start to finish but an increase in the rate at the follow-up financing. At least a small increase is firmly planned, depending on the salary situation also a larger one. (In terms of income, we are, in my impression, rather below the forum average) The other point is that one does not stay at 30-35% for housing. The older generation mostly did not do that either. My parents lived back then on what my mother earned as a medical assistant, and my father's salary went entirely into the house. Only one car, by the way (in the Upper Swabian village!). So quite a lot was paid off by the time I was the first to come. By the way, the second car only came when I was of kindergarten age. Vacations were always arranged so that they were cheap. Preferably off-season, vacation home/apartment instead of hotel, car instead of plane, no overpriced totally hip destinations. But that doesn't mean the vacations were bad. When I look around today, I rather have the impression that the demands on life are the same as when being DINKs, but the house is supposed to have all the bells and whistles. Then, of course, 20 years will never work.

Assumption: Building at age 30 Equity: EUR 100k (which is not little for an average earner at this age) Constant annual repayment without special repayment (calculated without interest!) To have fully repaid the loan in 20 years or by age 50, an annual repayment of EUR 25k or a monthly burden of EUR 2,083 is required

The data fits us very closely (30 years old, ~100k equity) and we had ourselves run through something like this about two weeks ago (~550k loan, due to additional purchase costs and keeping a small buffer), that would have been more than 2,300 rate with a theoretical term of about 31 years or so. No matter what we ultimately find (actually we rather hope for a townhouse <500k), I am very sure that I will never ask for an opinion about financing here :) Either way, we will end up with a rate that corresponds to a significantly higher share of our income than most here still find comfortable. In particular, many here still consciously or unconsciously have last year’s conditions in the back of their minds, and comparing with those just doesn’t help me. A year ago we still thought “well, if the next new development area is allocated by the city, we’ll just apply.” Currently, I am rather of the opinion that it doesn’t bring anything anyway, because I really don’t see how we can still put a house on it. *sigh* Edit:

The other point is that you don’t stay at 30-35% for housing.

Exactly that :) but I still often see this considered absolutely unimaginable here

Interesting is: construction timber has massively dropped on the commodity exchange. I'm curious when this will reach the end consumer. When prices went up, it didn't take long. If the 4x6 batten is below 1€ again, I'll build my garden house. But will that happen?:p

interesting is: construction timber has massively dropped at the commodity exchange.
I'm curious when this will reach the end consumer.
When prices went up, it didn't take long.
When the 4x6 roof batten is under €1 again, I'll build my garden shed. But will that happen?:p

That will take a while. It's called the "Rocket and Feather Principle," often observed at German gas stations as well.

The data fits us very well (30 years old, ~100k equity) and we had something like this calculated about 2 weeks ago (~550k loan, keeping a mini buffer because of additional purchase costs), that would have been more than 2300 monthly payment with a theoretical term of about 31 years or so. No matter what we ultimately find (we actually hope for a townhouse <500k), I am very sure that I will never ask for an opinion on financing here :) We will end up with a monthly payment that corresponds to a significantly higher portion of our income than most here would still consider comfortable. Especially many here still consciously or unconsciously have last year’s conditions in mind and the comparison simply doesn’t help me.

The situation now certainly applies to very, very many. Both regarding equity – this has already been a problem for a while, the bank wants the hot air to be paid for – and income. The monthly payments quickly reach values just under €3000. You have to be able to afford that. Another aspect is still completely ignored because we have known only boom times for years (a decade): It can go in the other direction, too, and then even a skilled worker (whatever that is) suddenly needs time until a new job. If 50% goes to housing costs then, it quickly becomes uncomfortable. That is exactly why there is this rule of thumb for a healthy portion when buying/living.