Construction costs are currently skyrocketing

A building society saver will have a building savings amount, 70:30, 60:40, or 50:50 (loan : credit), and then the monthly burden on the remaining loan over the building society saver should decrease. The payment until allocation maturity can be well controlled. You have to like building society savers, but they are an option.

Where is the best building society saver currently available?

Ok, over €800 per month still goes into the building savings contract… :rolleyes: How does it continue after the 10 years? (I want to understand). What does the follow-up financing look like? That must already be decided, otherwise it doesn’t make sense (to me). What is the security for the remaining amount?

Okay, I understand, I’ll try again. The follow-up financing consists of the building savings contract (€280,000) and another loan for the "rest." The building savings contract has an interest rate of 1.25%, the other financing we obviously don’t know yet, because that only comes into effect in 9 years. In fact, by then, other fixed-term investments of ours will become available, which we can use to reduce the remaining debt not covered by the building savings contract to a "small amount" (>€50,000). The repayment rate of the building savings contract will then be about €1,550 (I don’t have the exact figure in mind or at hand right now). The building savings contract costs us on average €14,400 per year, which we pay through a savings rate and special repayments (we can pay flexibly). This sum was originally planned for repaying the mortgage loan, which at the current low interest rates probably doesn’t make that much difference. And then we’d have the problem again with probably significantly higher interest rates for the follow-up financing of about €345,000 (these will definitely be above 1.25%). I also gulped at this initially, but given the additional monthly burden from the building savings contract and considering the current developments and that we can afford it (household net income currently around €6,500, civil servant + public service), it makes sense to me for us. And with the building savings contract, the house is actually paid off 6 years earlier. We’ll see if the calculation works out in 10 years. And if it doesn’t work out with the building savings contract, the world won’t end either. We can still use the money paid in anyway. I hope this explains it more clearly now.

Edit: Not household net income, but net income! Currently, the available monthly household income is even significantly higher due to child benefits and maintenance payments, but I don’t count that.

Anyone who has completed school should know that it is true. Keyword: wage-price spiral. Inflation only goes down when consumption goes down. That only happens through loss of prosperity. Simple market economy.

Inflation = increase in the money supply M3 - economic growth

The inflation of recent years simply wasn't as obvious as it is now. At the latest since Corona, but actually since 2008, only a bigger recession has been postponed through systematic money printing.

By the way, for me and my family, the topic of buying real estate or building a house is on the agenda in the next 2-3 years. If there were building plots in our area, we probably would have built three years ago. Now we see our dream of owning a home bursting more and more week by week. Today I recalculated what is still possible for us with the current construction loan interest rates and construction prices. When I compare the costs with our income, our education, and our working hours, it is beyond all reason. To be honest, I have long since not known what still holds me in this country. My wife and I can certainly find work elsewhere.

here are about €833 per month…

The building society saver now gets what we wanted to put into the special repayment (about €10,000 p.a.)

And now it’s already €1200 per month extra. :rolleyes:

The building society saver costs us on average €14,400 per year,

Makes together with the rate €3100?:rolleyes:

The calculation is by far not finished yet…
So you get the €280k for 1.25% interest. (Because you “pump” €144k into the building society saver). Is that assumption correct? The remaining approx. €60k you would have to mortgage at market interest in 2031. Also correct?

If you put all of that into the loan, the remaining debt would be about €180k (instead of €345k). Also correct?

And how high does the interest rate have to be in 2031 so that you “win”? (it’s too hot for me to calculate now :D )

Inflation = increase in money supply M3 - economic growth

The inflation of recent years just wasn’t as obvious as it is now. At the latest since Corona, but actually already since 2008, only systematic money printing has been postponing a bigger recession.

By the way, the topic of buying real estate or building a house is coming up for me and my family in the next 2-3 years. If there were building plots available in our area, we probably would have built three years ago. Now we see our dream of owning a home bursting more and more week by week. I calculated again today what is still possible for us with the current construction interest rates and building prices. When I compare the costs with our income, our education, and our working time, it’s beyond good and evil. Honestly, I haven’t known for a long time what still holds me in this country. My wife and I would surely find work somewhere else.

So construction activity must decline and therefore prices as well. If there is less demand, the margin must be reduced to get orders. The bosses will then only drive Mercedes and no longer Porsches. Price increases due to high energy costs are naturally a different story.

So construction activity has to decline and prices with it. If demand is lower, the margin must be reduced to get orders. The bosses then will only drive Mercedes and no longer Porsches. Price increases due to high energy costs are of course a different story.

It does not necessarily have to be like that. In my opinion, we have been in "stagflation" for at least half a year. Not only energy prices but also various raw material prices cannot be easily lowered through monetary policy decisions within the EU.

It will of course be interesting to see how the construction industry deals with high raw material prices on the one hand and a collapse in demand on the other. Knowing Germany as I do, my guess would be: big swallows small and government money for the large developers.