Does the real estate market increasingly force more families to build?

The market is unfortunately extremely difficult at the moment. We live in a medium-sized city and there a new single-family house or building a single-family house under one million is not feasible. That's where it starts. We have therefore decided to move to the countryside (10 minutes to the city) and have thus been able to realize the dream of owning our own house. But even there, nothing is possible under 600,000.

Please?

I meant it in a positive way - not in the negative way as you indicated. That was imprecise of me, sorry.

And as a result, there is a crisis in Europe, the central bank has to lower the interest rate to zero, and housing becomes expensive as a consequence. Which brings us back on topic.

The zero interest rates actually sparked the desire for owning one's own home, which makes this a bit of a vicious circle. Many have not been doing this well for a long time, and they are multiplying uncontrollably.

I actually meant it in a positive way – not in the negative way you mentioned. That was imprecise of me, sorry.

Ah ok. Then I understand.

If a developer had four types, you pick one of them, you can only choose the color of the curtains, then completely different prices would be possible. Only... for most people here that’s a nightmare. Karsten

The liberal free spirit and advocate of individuality preaches housing socialism as the solution? I’m telling you, Diet Coke doesn’t go down well...

But sure, the demands for single-family home construction nowadays are really top-notch. But that has nothing to do with affordable rental apartments in the city. I can fully agree with:

Everything sold, privatized, how dumb was that!

That was stupid, but intentional. Because the market can do it better and clinics have to run profitably etc. Like the railway, which famously has become so much better since it went public...

chand, I'm not saying everyone should just build. I'm saying that at the moment there apparently is no market for simple streamlined building in construction. Unlike with cars, where there is a market for Dacias. A niche in construction is occupied by the Deutsche Reihenhaus. They build quite standardized. K.

It is quite a complex topic. In addition, there are other factors such as the potential future governmental access to real estate in the form of a forced mortgage for property owners. This has happened before in Germany (Lastenausgleichsgesetz) and has also been discussed in the Bundestag.

The Euro crisis is not over yet, the worst is yet to come. A look at the so-called Target2 balances is enough. These are alarming figures.

I do not really trust our state and Europe in such matters, and homeowners can hardly defend themselves.

Moreover, a house also ties up a considerable amount of capital. With long-term investment in broadly diversified index funds, more capital can be accumulated than with a house that requires its first repairs after just 20 years.

Owning a house is a fine thing. However, many overextend themselves financially or often cannot build other retirement provisions for financial reasons. And living rent-free is not really the case even in a house that has been paid off. Costs always arise, which can be better managed. But many postpone this until a major backlog of renovations occurs.