House construction 2021 financing €500,000 opinion

Nevertheless, the air is getting extremely thin in real estate, because where there are no buyers, prices can no longer rise. Then market consolidation must occur.

Because of the low interest rates, people can afford the high prices. And if it were not like that, prices would come down.

The price of houses is traditionally regulated by supply and demand, whereby demand is closely linked to the maximum monthly payment. If you compare how much credit you could get in 2020 for, say, 1500€/month with the loan amount of 2000, it is clear why prices have risen so much.

The mistake is here! A typical general contractor house does not cost 350,000. Many people here may have spent that much or more, I also calculate an average of €2,000/sqm of living space, but in reality the houses are built smaller. At least in our region (Lower Saxony is also quite inexpensive for house construction) and over the years. Commuter belt, creation of living space through semi-detached houses and small plots ... the general contractor as an affordable means for the average citizen to get a house without frills. Most are satisfied with a family bathroom upstairs, don’t plan an expensive basement, and as a nice-to-have a small 3 x 4 terrace roof as well as a walk-in shower.
But that was also the case 10 years ago and 20 years ago (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.

Because of the cheap interest rates, people can afford the high prices. And if that were not the case, prices would fall.

The price of houses is classically governed by supply and demand, whereby demand is closely linked to the maximum monthly payment. If you compare how much credit you could get in 2020 for, say, 1500€/month with the loan amount of 2000, it’s clear why prices have risen so much.

And this is exactly where I want to disagree. Politics and business will invent something to pump even more money into the market. The Corona aid, for example... huge government debts are being taken on. Whoever receives the money, huge sums are being distributed. Indirectly, the money will also reach the middle class (stocks, for example). I hope this does not drift into Corona or conspiracy theories now, that is not my intention, but rather to show that predictions are extremely difficult and a certain end of the good times can never be reached.