Home financing ever possible? Probably not!

Yes, 6 months passed from the emergence of our desire to build to the purchase of the land. I actually didn't think it would be possible, but the increase in value of my condominium made it possible back then. With today's interest rates, I would have to sell the condominium, but even then a single-family house would be possible.

People will also have to sell their real estate partially.

I rather don't believe that. Sure, everyone complains about the current prices, heating costs, inflation, and so on, but nobody heats less, rides a bike more, or restricts themselves in any other way. I just don’t see that in my environment.

Instead, I actually have quite a few families who are actively planning to buy property. Especially families with more than two children in my circle of friends find the three- or four-room apartment simply too small now. You can't rent anything bigger here.

So everyone lives in their own bubble...

I see it similarly. What else is the alternative? Sell the house and then rent? Is that cheaper to have?

Also this belief that banks would immediately foreclose if one payment is missed. In 98% of cases, you will find a solution with the bank if you make an effort in time. The bank usually has no interest in a foreclosure, because there is always the real risk that the place goes for less than its value and the bank will be stuck with part of it... and this risk increases the higher interest rates and inflation rise, because fewer and fewer people can attend such auctions...

The forced auction is really rare. It also makes no sense to let it get to that point. Even in a divorce. The problem with a divorce is often not even just continuing to pay the existing installment alone, but having to pay out the ex-partner as well. And there is no new loan on top of that. So the only option left is the sale.

I don't blindly sign that off. In my opinion, it very much depends on how high the loan-to-value ratio is, when you start struggling with the installment (at the beginning, middle, or end of the repayment period), and so on. It also probably matters whether you simply went with a direct bank or took out the loan at your local Sparkasse where your checking account is also held.

For example, if 100% was financed and after 24 months you are already behind on 2 installments or the unsecured portion possibly hasn't been repaid yet, no one will probably agree to a temporary suspension of repayments.

It probably looks different if the place is almost paid off and you only have to pay a meager €80 interest per month on €75k remaining debt, because the deal has already been “almost” made with you.

Have I already mentioned that I am a "left sock"? Well, it is really really really really hard for me, but regarding finance I unfortunately have to agree with in some areas ... phew, that was really hard!! Of course many of the things he claims are total nonsense in the real world, I do not deny that at all. Also, things described by other participants regarding refinancing costs, etc. are (in the real world) of course facts. But whoever watches the movie "Der Goldschmied Fabian" in its entirety (Warning: The thing is very long in all parts) will understand that many things here are going very very wrong all over the world. Of course, we cannot simply change these, but it would be desirable in my opinion. In this sense, I wish everyone a peaceful and social new year ;-)