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

Most banks require an initial repayment rate of at least 1 percent per year for construction financing.

Have a nice afternoon....

There is no problem with the 1% repayment. The banks set a minimum of 2. And whoever still does it is stupid. But be that as it may. People buy overpriced and cut off their air to live.

I found Jean-Marc's approach charming. One modifies his thinking: 1% repayment at the lowest possible interest rates over 20 or more years with the goal of selling afterwards. Then you see the bank in the role of a landlord without repair obligations. But Germans tend not to think that way.

I think many people (like me, for example) see the house as retirement provision – so of course you want to make sure to pay it off quickly. But fundamentally, especially with the current interest rate, it is not stupid to have a 1% repayment. After 20 years, you usually need a different house than when you were young with children. Therefore, build something solid that you can easily get rid of, and then in 20 years either the same again or back to an apartment. The only problem is if in 20 years the real estate market is at rock bottom and interest rates are very high...

Our first house was financed at 4.7% and paid off in 2006. Our current one at 1.25 and it is now paid off because the debt-free first house in a good location provided enough equity to hardly need any loan. As a somewhat old-fashioned person, I tell myself that no debt is always better than even good debt, and having is better than needing. Karsten

I found Jean-Marc's approach charming.

One modifies one's thinking: 1% repayment with the lowest possible interest rates over 20 or more years with the goal of selling afterwards. Then one sees the bank in the role of a landlord without repair obligations.

But Germans tend not to think like that.

In high-priced Denmark, for example, the possibility has long been created for young families to not repay anything at all for the first 10 years. After that, one can decide either to start repaying or to sell the house with appreciation. The bank provides a maximum of 80 percent of the lending value, and the nominal interest rate is naturally somewhat higher due to the greater risk for the bank; however, the entry barrier towards owning your own home is significantly lower.
It goes without saying that the saved repayment should not be squandered on travel, cars, electronics, etc. if one wants to stay in the house after the 10 years.
Yes, Germans wrinkle their noses at something like that. It is certainly not a financing model that one could chat about at the Easter bonfire without getting many dismayed looks within a minute.