House construction 2021 financing €500,000 opinion

When it comes to house prices, not everyone is anymore able to invest their capital in different ways. Real estate, securities, and short-term investments – not everyone who is currently buying a property can do that by any means. Other countries with a long history of property ownership are far superior to us in this regard. Not only do the French and Italians have higher average private wealth than Germans – this becomes even clearer when looking at the median.

Yes, the numbers have already been corrected - about 100,000 more...

no. no idea when there was ever €192 child benefit. definitely not this year. if the rest looks the same... good night

no. no idea when there was ever €192 child benefit. definitely not this year. if the rest looks the same... good night

2017.. ;)

A house from 2015 is pretty much the same as a standard general contractor's house today in 2020 – so why should it be 25% more expensive?

I consider this 25% to be a rumor ;)
Our house is a catalog house, was offered under the Energy Saving Ordinance 100 for 149,500, year 2013.
The year before last, it was still listed online just as it was 7 years ago, only with KFW 55. Unfortunately, I didn’t remember the advertised price, but it wasn’t a 25% difference.
This concerns an average general contractor who doesn’t have anything to give away.
And also some surfing around in recent years hasn’t really impressed me – yes, when a construction specification was included, you could see one or the other difference. But those were not price drivers (containers, porta-potty, …)

Sorry for my naivety (I don’t have an economic profession, and my knowledge lies elsewhere), but:

my household could afford MORE house today than we could in 2013 – purely considered from financing, comparing with a current house price, independent from increased income. That is still on top.

The grants for KfW 55, for example, didn’t even exist THEN, nor 100% grants for photovoltaics or whatever is always included in financing here. Sorry for my ignorance, back "then" (it’s not that long ago anyway, if you look at your comparison), we weren’t confronted with these high sums at all.

These meager interest rates nowadays aren’t even mentioned. Those who never had to deal with 2.5% or even 5.5% interest (or only know fictitious 8% from their parents’ stories) have been calculating with 1% for the loan for years now, which also isn’t mentioned anymore, and rather juggle with repayment, so that it’s paid off in 20 years.

What used to be all nice-to-haves are now planned as must-haves for most prospective builders… not because building has become so expensive?! I mean, all those children’s bathrooms you see around here, they don’t come for free…!
The 109 sqm houses as semi-detached houses would already have to be classified as social housing for many, while they plan 160 plus.

A “typical” €350,000 house from the general contractor

There’s the mistake! A typical general contractor house does not cost €350,000. Many here might have spent that much or more, I also calculate with an average of €2,000/sqm living space, but in reality, houses are being built smaller. At least in our region (Lower Saxony is also relatively inexpensive for building houses) and over the years. Commuter belts, creating living space through semi-detached houses and small plots … the general contractor as an economical means to allow average citizens to get a house without frills. Most suffice with a family bathroom upstairs, don’t plan an expensive basement, and as nice-to-have, plan a small 3 x 4 meter terrace roof as well as a barrier-free shower.
But it was like this 10 years ago and 20 years ago as well (friends built in 2000, we bought something). Most didn’t think about children’s bathrooms or children’s rooms that had to be 16 sqm.

That means the plot prices are also being constantly adjusted upwards.

I agree with that. Prices are constantly rising.

Please correct me if I’m wrong.

I consider the 25% to be significantly underestimated. I expect an increase of 50% to 70% in that period. The houses have not changed much in terms of equipment.

Every year you build later costs a lot of money. Whether this will continue, I do not know.

Evening,

Mid-terrace house Ludwigsburg (neighboring town)
170m2 on 250m2 land.
Standard equipment
Timber construction
860,000€ excl. acquisition costs

Alternative:
65m2 apartment with balcony, same design. Parking space
350,000 €

THIS was not like that 10 years ago!
In this respect, I feel not only the plots are overpriced