Construction costs are currently skyrocketing

Who spoke of 100T? But the last 20T are not that rare. Just take a look at the Finanzierungs*forum to see how many building blocks the offers consist of. It was just an example after all, the reasons can be diverse.

It does not matter what the specific reasons are in each individual case - the air is getting noticeably thinner again, and even people who have recently jumped on the bandwagon are at risk of being left behind. The number of demanders is continuing to decrease (due to lack of possibility = money, income), interest rates are rising, and costs as well. This will have an impact on the supply side (new and existing)..

Over the weekend, I was told — almost firsthand — that in our area, some new buildings that were started are not being completed by the initiator because the necessary additional financing, which became necessary due to rising prices, is failing.

I simply cannot imagine that. Additional financing is almost always approved by the financing bank (even if grudgingly). For several reasons:

1. Quite good money is always made from additional financing.
2. The bank does not want to complete the project at its own expense and then sell/rent it out. This is always the last resort even in the insolvency of a client (keyword: self-administration).
3. When realizing a partially completed property, the bank will only be able to recover a significantly lower portion of the loan funds already disbursed.

The need for additional financing would have to be well over 30% of the original financing amount for a bank not to approve it. In my opinion, unimaginable.

… For several reasons: …

The reasons sound plausible. Unfortunately, I cannot verify what I was told. The statement comes from someone who finances real estate. I cannot imagine that this is fabricated.

The reasons sound plausible. Unfortunately, I cannot verify what was told to me. The statement comes from someone who finances real estate. I cannot imagine that this is fabricated.

Oh yes .. "someone who finances real estate" is quite a broad field. Banks are usually large behemoths, with employees being small cogs with limited overview. I don’t mean that negatively. It’s just the way it is. There are only a handful in upper management who really have an overview.

Someone always knows some horror story. Which bank is interested in letting its borrower fall because of 10, 30, or 40k€? For the bank, something like that is currently a total disaster. Loan defaulted, customer's personal bankruptcy almost certain, refinancing of the loan, unfinished house, arising work and costs.