Construction financing - How will it change in the future?

Regarding retirement and the associated lower income. One does not have to stop working just because they have reached retirement age. Not even if one is receiving a pension. It can even lead to an increase in income...

How do actually 80% of the population who pay rent completely survive?

We owners are absolutely privileged, as we are much better off in retirement than the tenants. One should never lose sight of this in the discussion.

Of course, it is better to live in ownership in old age than to rent. However, the word ownership implies that it belongs to you and not to the bank (which I assume in the hypothetical term of 60 years, if I understood that correctly). So no longer having to pay monthly installments.

But you can see in the current crisis that, for example, in short-time work and possibly even dismissal, some current financing has no chance anymore.

That is why I prefer to live in rent and save on the side, rather than a financing over 30 or 40 years with installments that are mostly higher than one can afford.

But unfortunately, you don't know if the pot is already empty upon moving in, and the applicants thus come away empty-handed.

Meanwhile, you have to hurry up, and apparently the last ones get bitten by the dogs, that's correct so far. But assume that an upcoming emptying of the pot is also not announced overnight. My last information is that by the end of September only about one third had been used up.

Meanwhile, you have to hurry and apparently the last ones get bitten by the dogs, that's correct. But just assume that an impending emptying of the fund won't be announced overnight. My latest information is that only about a third was gone by the end of September.

If I should be awarded a plot on Monday (keep your fingers crossed for me!), then I can start planning the house. Then the discussions with the architect begin. Then submit the building application and get it approved. After that, build the house (individual awarding of the trades) and move in. I won’t be finished before the middle of next year. And by then we are already in a period where the fund could be empty.

Also Dr. Klein writes the following about it:

Applications for Baukindergeld amounting to a total of 4 billion euros, and thus 40 percent of the 10-billion pot, were used up by mid-February 2020. Baukindergeld can be granted for a total of 833,333 children; it has only been applied for 333,333 children so far. KfW does not communicate exact payout numbers. It only states that everyone who is eligible and submits complete documents will receive Baukindergeld.

That means 40% in one and a half years. So it should still be possible.
Of course, it is better not to count it in and to be happy about an additional, "unexpected" sum.

You don’t have to stop working just because you’ve reached retirement age.

If only it were that simple...

Currently, 50% of employees retire early(!). Often also for health reasons. In addition, depending on the collective agreement, the employment relationship automatically ends at retirement age. No... you definitely have to expect a loss of income from the normal retirement age. (More likely a few years earlier.)

Of course, you can still use the pension to pay off a remaining debt, but then with a reduced rate and therefore an even longer term.