Construction costs are currently skyrocketing

... Follow-up financing will in any case no longer be so high that higher interest rates will become a problem

That's exactly what I meant. If the follow-up financing no longer makes the difference - it doesn't matter, then choosing the low interest rates with a limited term is understandable. Everything else like "would-have-could-have chains" ...

We signed our financing exactly 2 weeks ago. We got about 2.7% for 10 years (mixed between KfW and house bank). We didn't go for 15 years because we only took out just under 260k (without equity) and with special repayments we might be done in 15 years anyway. The amount for the follow-up financing will definitely not be high enough for higher interest rates to become a problem

Where can you get move-in ready existing properties for 260k€? :rolleyes:

In the short term, it will be like that. With us, there is also no salary increase matching the inflation rate, especially not net. But in the long term, it will balance out. Goods and services can only become more expensive if there are enough buyers who can afford them ;)

It is not certain. There were long, long years with net income losses for many. The big problem was that the golden cat years were considered the normal state. As here, too - "when will interest rates normalize again?". It is analogous to 1% repayment and the rest in ETFs and Bitcoin. We have had these discussions enough.. ;)

But you are of course right, supply and demand come together and balance out. This will be interesting with a real estate market overvalued by up to 40%.

When I look at the current interest rate developments and the associated problems and worries of some home builders, I count my lucky stars that we still got such favorable conditions last summer. Financing over 100%, 0.92% interest, 10 years, €1900 payment with a 3.4% repayment rate. The plan was actually to make regular annual additional repayments. But we are now putting that into a building savings contract recently and quickly concluded, which covers the majority of the remaining debt in 10 years. We managed to get 1.25% interest there. Even though we will have slightly higher burdens in the coming years than planned, we know that our burden at the follow-up financing is manageable. At the current interest rates, we probably would not have been able or willing to afford our little house like this. I do not envy anyone who (at the current construction and real estate prices) is currently looking for financing.

Where can you get ready-to-move-in existing properties for €260k? :rolleyes:

Saxony or the Hof district I can imagine... Ready-to-move-in is a flexible term after all

My boss, bless his little heart, still refuses the inflation adjustment and at the company where my husband works, 2% is currently being discussed as the maximum, since short-time work is also an issue there.

The very first sentence from my boss at my salary negotiation this year was "Straight away, there will be no inflation adjustment." Whereas you do wonder a bit with us why not... When the company is currently making record profits, you also think a bit "if not now, then when on earth?!" I can somehow understand that the employer doesn’t just stand there and say "okay, here, you all get 8% more" (ongoing client contracts also don’t suddenly just bring in more, some have similarly increased costs, blah blah) but it is really tedious. If you look at online guides about this, they also rather say "don’t argue with inflation, but with your own achievements/accomplishments" blah blah ... But if my own achievements justify an 8-9% increase without inflation, then with 8-9% inflation that’s still a pretty frustrating outcome (sigh).

That will get interesting with a property market overvalued by up to 40%.

Whereas I just don’t really see the complete crash there. Construction costs are currently just high as a fact (currently more justified due to energy and raw material prices than in previous years). For existing properties, it’s a bit of a question... With the interest rates, many things are less affordable... on the other hand, existing properties are also becoming more attractive because right now the costs are significantly more predictable there. I have a million question marks there. For example, what happens if the situation in the world calms down early again is of course a question (or the opposite). I somehow see a bit of a rocket-feather principle there (meaning that increases are passed on as quickly as possible but discounts take noticeably longer). I certainly would not bet that prices in the property market really have to fall now. On the other hand, I also wouldn’t want to bet that they will continue to rise. So the calculation "I will build the house today and if in doubt, be able to sell it at a profit in 10 years" is not something I’d want to bet on either. Definitely an exciting situation.