SumsumBiene
2022-06-28 09:32:32
- #1
So if building permits for a single-family house in Germany already drop by maybe 40 percent at a real interest rate of 3.5 percent, then that very much has an impact on price development.
Let's just look at strawberries and asparagus. Consumers have bought less due to lack of money. Prices for these products already fall. 7 euros for domestic quality asparagus per kilo hasn't been available for a long time. So rising interest rates also mean falling prices.
It can therefore quite well happen that construction prices will collapse if interest rates continue to rise.
Of course, some things will shift. If I get 5 percent interest on savings deposits, then I simply have more money available.
With 200,000 euros in the savings account, that's 10,000 euros p.a. minus tax.
An investment property of mine is, let's say, worth 700,000 euros. I sell it for 500,000 euros. I invest that at 5 percent. That makes 25,000 euros income from interest. For that, I save myself all the landlord hassle.
Let's not forget the fraud and the cold expropriation of savers. Reduction of the pension level, losses with capital life insurance, no longer any possibility to calculate with interest income. Even 10 or 15 years ago, many had imagined their retirement differently.
There is still the possibility to conclude financing at a favorable interest rate for 30 years.
Well, I really have no idea about finances, but if strawberries get cheaper, that is only a short phase. Next year, simply fewer will be grown and the few will then just be more expensive.
Whether you want to transfer that or not is up to you...