Construction costs are currently skyrocketing

Previously, someone often mentioned the KFW 124 loan as a benchmark for rising interest rates. It has just been reduced from (I believe) 3.45% to 3.16%. I think this is the first time in a long while that it has been noticeably lowered again. (Otherwise, I think it has been going up more or less week by week.)

The end of the new building

As a title, it is nicely summarized in the FAZ, you can google it.

Sounds always flat when said: "The good years are over for now."

Lucky is he who has his little house standing or who managed to sell his property a few months ago.

Someone else here had often named the KFW 124 loan as a benchmark for rising interest rates. It has just been lowered from (I think) 3.45% to 3.16%. I believe this is the first time in a long while that it has been noticeably reduced again. (Otherwise, I think it has been going up more or less week by week)

Do private builders even take advantage of this anymore? My main bank would still offer me under 3% for 15 years. But well, maybe the financing allows that since so far < 50% debt.

Anyone building today is really a poor bastard – who would have thought that could be a schizophrenic pun. :-D

Does a private homebuilder still make use of this at all? My house bank would still offer me 15 years for under 3%. But well, maybe the loan-to-value ratio allows that as so far < 50% debt capital.

Anyone building today is really a poor sucker – who would have thought that could one day be a schizophrenic wordplay. :-D

In our rural area, the interest rates at the banks with the red S continue to rise. In the neighboring town, there is now 2.2% on the 10-year savings bond, and in our town 1.5%. Both interest rates for deposits were adjusted upwards over the weekend. I assume that loan interest rates at these institutions were also increased over the weekend.

Does a private builder even take advantage of this anymore? My house bank would still offer me under 3% for 15 years. But well, maybe the loan-to-value ratio still allows that since so far < 50% debt capital.

For us, the first preliminary inquiry (as of the day before yesterday) was around 3.4% for 10 years, for 15 years I think it was about 3.7-3.8%. So yes, 3.45% for 10 years wasn’t really attractive, but with the recent reduction it might be an option again (depends on whether other banks also lower their rates or not). But we also have a significantly higher loan-to-value ratio (~90%). We’ll see. We didn’t do a thorough check yet; it was initially just to set the framework with our data.