Construction costs are currently skyrocketing

NRW and 1-2 others at 6.5%. Here, the opposite is rather being discussed, to lower it, for the reasons found here in 604 pages.

And inherit the property. Ask yourself how it would be if you now had to pay 200,000 € + for the property... .

Then he would have financed 300,000 euros. For many (at least dual earners) still doable at 3%.

As bitter as it is. I think it's fair. In most federal states, the real estate transfer tax is 5 or 6%.

I agree with you. However, it could be lowered in the other federal states as well. That would also be fair. ;-)

C: I inherited the property.

I think that’s decent of you and remarkable that you mention point C. Many others simply leave out the inheritance, and the rest of the builders then wonder what they might have done wrong in comparison, since it doesn’t work out so easily.

Then he would have financed 300,000 euros. For many (at least double earners) still doable at 3%.

Right, doable but just not full repayment in 10 years. So the show-off about having earned it all yourself doesn’t quite add up.

And no work allergy and public service is also an excellent combo in a post :p

I am primarily interested in the current construction prices and the situation of the construction companies. I think and believe that the effects of the enormous interest rate increase should be slowly arriving and that the order books for 2023 with single-family homes will be harder to fill. I would be very interested in reports of experience on this.

On the subject of everything was better in the past, it used to work with all sorts of interest rates, blah blah blah.

Interest rates have dropped extremely since 2012; back then, it was easy to finance for under 3%. Construction prices or purchase prices for condominiums, however, were significantly lower. If there is a bubble and if it should burst, it probably won’t happen today or tomorrow. *CRYSTAL BALL* The price pressure on existing properties is already noticeable. Here in the metropolitan area, existing properties have been offered well above their appraised values in recent months, and now prices are getting closer to the appraised values.

Now supported with real numbers.
a Financing mid-2012 at 2.68% for 10 years. Property value today factor 2.6.
b Financing early 2019 at 1.96% for 20 years (after which interest rates went down even further). Property value today factor 2.

Does anyone notice something? Property prices have risen exorbitantly in the last 3 years. Construction prices are elsewhere, and that is not just due to material prices! So it will take a few more years until the projects financed between 2018 and 2022 with tight budgets and 10-year fixed interest rates come into the situation of refinancing. Until then, I hope and believe that the single-family home market will come under considerable pressure and prices will normalize a bit more.

I agree with you. However, it could be lowered in the other federal states as well. That would also be fair. ;-)

I fully agree with you! :)