Construction costs are currently skyrocketing

With us, the first preliminary inquiry (as of the day before yesterday) was around 3.4% for 10 years, for 15 years it was, I believe, around 3.7-3.8%. So yes, with 3.45% for 10 years it wasn’t really attractive, now with the reduction maybe an option again (depends on whether things also move downward elsewhere with the banks or not). But we also have a significantly higher loan-to-value ratio (~90%). Let’s see. We didn’t really search extensively, it was more about defining a framework with our data.

That probably corresponds to the average one hears about.
We are considering creating an additional buffer of 50k for upcoming price increases, so we are currently looking around the lender landscape again. Luckily, we locked in at 1.3% in February of this year with a 15-year fixed interest rate. I already don’t regret not going for 20 years, well. Coulda, woulda… :-)

Who knows what will happen in 10 or 15 years and which fires will then require extinguishing by the central bank. I wouldn’t worry too much about it for now and focus on getting the construction through as smoothly as it is currently going. You have financed the main part cheaply, and that is already something.

That should roughly correspond to the average one hears about. We are considering creating an additional buffer of 50k for the upcoming price increases, which is why we are currently also exploring the funding landscape again. Fortunately, we still locked in at 1.3% in February this year with a 15-year fixed interest rate. I already don’t regret not going for 20 years, well. Coulda, woulda… :)

Did you start building at the same time? We signed the financing on 21.07.2021 (10 years 0.96%). Unfortunately, construction only started in November because the building authority took not the expected 6 months but 9.5 months for the building permit. Of the €495,000, €350,000 have already been disbursed and spent. We will still draw the remaining amount before 21.07.2022 and start with the repayment. I currently assume that the house handover will be between August and September. We are giving notice on the apartment for 31.10.2022.

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

How would you react to your numbers if you had savings instead of liabilities? At some point, you have paid off your house or built a new one without financing. Then you might still have savings or, like some home builders, will soon receive the KfW grant 461 for your efficient house. Hopefully, better times are coming for savers.

Hopefully better times will come for savers.

Well, if inflation rises as much or more than the savings interest rates, it doesn't help savers much either. It just feels a bit better when you see the amount on the fixed deposit actually growing through doing nothing, but if you practically still can't buy more with it, I don't really see the good times coming :)

Well, if inflation rises as much or more than the savings interest rates, then it doesn't really help savers much either. It just feels a bit better when you see that the number on the fixed deposit actually gets bigger by doing nothing, but if you practically still can't buy more, I don't really see the good times coming :)

Your glass is half empty and mine is half full...