Financing with low repayment and many special repayments

You are basically right. But I have spent about 30 years in the construction industry through my parents. Here you can see a lot without having insight into the financial data of the new builders. The situation has also changed significantly in the last 15 years. There have always been builders for whom money was very tight for whatever reason. In the past, however, the tendency was rather to keep building as long as there was money (usually building with an architect). This resulted in builders who had lived in their new home for 1.5 years without screed and floor coverings. I know houses that were built in the late nineties where there is still no plaster on the facade today and the entrance stairs consist of pallets. This is not the rule, but neither is it as rare as one might think. The work is then carried out very slowly bit by bit through self-performance. Today, turnkey construction is the trend. You can perhaps leave out one trade. In most cases, however, additional financing is obtained. Banks have also become much more generous in this regard.

Very few young houses go into foreclosure, that is absolutely true, but only because that is the very last step. However, many houses are resold within the first 10 years. In the new construction areas around me, between 5% and 10% of new builds change owners within the first financing period. Very often this is due to divorces, but of course some also because they overextended themselves or the costs were significantly higher.

That is not true. Many are familiar with the subject and talk about the current situation. It is a fact that banks are currently struggling with old loans. These are increasingly being repaid with special repayments or terminated early using the Building Code option (also a form of special repayment). These follow-up financings are repaid at a very high rate. Moving on to new financing: it is often said to keep the repayment rate low and handle everything through special repayments. There are also reasons related to the boom that partly high loans are taken out where even a 1% higher repayment rate already hurts. Here you really have to question yourself whether I can manage this if I already fail at 100€ more in the rate, for example to consume this. So the repayment behavior varies greatly.

That is true. You always have to be able to afford it, otherwise you should leave it be. Nevertheless, I stick to my statement that the vast majority here are at the very beginning of their own financing and very few can rely on actual experience regarding the multi-year course.

I'll take a big risk and claim that in the area of private construction financing, despite the low interest rates and the resulting low cost burden, less than 50% of the agreed special repayment options are utilized.

I don't think that is far-fetched. I rather think it is much less than 50%. 20% is probably already too much.

I don't think that's a big stretch. I rather think that it is much less than 50%. 20% is probably already too much.

Correct, and I'm not saying that as a speculation

So with us, the truth lies somewhere in between. [emoji23]