How is a 400k loan financible without equity? Net equity at €4,500

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The example concerns an average single-family house with an average plot of land. The median (index = 100) is the year 1990.

Price index comparison from 1975 to 1976: 45.2 / 46.9 (+1.7 points) From 1976 to 1977: 46.9 / 51.5 (+4.6 points) From 1977 to 1978: 51.5 / 57.0 (+5.5 points) From 1978 to 1979: 57.0 / 65.8 (+8.8 points)

For comparison, the figures for the last 4 years:

From 2015 to 2016: 172.8 / 184.8 (+12.0 points) From 2016 to 2017: 184.8 / 203.2 (+18.4 points) From 2017 to 2018: 203.2 / 221.0 (+17.8 points) From 2018 to 2019: 221.0 / 237.2 (+16.2 points)

So, in recent years we have seen significant price jumps, as simply did not exist back then. Between 1995 (130.8) and 1998 (126.4), the index even fell. Congratulations to anyone who was able to buy at that time.

In the 2000s, price development stagnated: 2000 (130.8) and 2009 (134.4).

From 2010, things really took off, with the pace even accelerating again in the last 3-4 years:

2010 = 133.9 2011 = 138.2 2012 = 143.6 2013 = 152.0 2014 = 164.3 2015 = 172.8 2016 = 184.8 2017 = 203.2 2018 = 221.0 2019 = 237.2

Of course, one could argue that interest rates are much lower today, but this advantage is offset by the fact that, conversely, more and more equity must be provided in order to actually get the best interest conditions. And this is increasingly difficult for the average income household. No wonder given the above-mentioned speed of price development. [...]

Seeing what the last financial crisis and the countermeasures triggered on the real estate market, I am curious about the consequences of the coronavirus crisis stimulus packages. Interest rate hikes are still not in sight and money continues to be pumped into the system. If a vaccine is found, after a certain recovery phase, prices are likely to rise again.

The question is whether you really want to spend the years of your life from 15 to 35 giving up everything and additionally sitting at home most weekends, just so that you might be able to buy a really great home in a nice location at 36. What I definitely know is that back then I would have been laughed at in my circle of friends with such a mindset.
In my twenties (2003 - 2012), I most likely spent the equivalent of the value of a small car in Kassel’s bars, pubs, and nightclubs. In hindsight, it definitely would have been smarter not to go out partying every weekend, but back then no one could have predicted that property prices would develop the way they did starting in 2011.

Exactly that. First, you have to be "mature" enough to save accordingly at that age and then really be willing to make sacrifices.
I myself bought a BMW expensive for my means, was constantly out on weekends, and only saved for the essentials.
Others lost their zest for life for me and sat in the smallest apartment to save as much as possible. Personally, I don’t want to miss my time. That way I know I haven’t missed anything and can now be happy to lead a quieter life.

The question arises whether one really wants to spend the years of life 15 - 35 giving up everything and additionally mostly sitting at home on weekends, so that one might be able to acquire a really great home in a beautiful location at 36.

The question arises what this so-called "sacrifice" actually is and what kind of entitlement attitude it stems from. Two fairly new factors lead to a rather new problem in home financing: 1. The overheated everyday consumer behavior and 2. the fear of "missing out".

The question is whether you really want to spend the years 15 to 35 giving up everything and additionally sitting at home most weekends, so that you can maybe buy a really great home in a nice location at 36. What I definitely know is that back then, with such a mindset, I would have been laughed at among my friends.
In my twenties (2003 - 2012), I most likely left the equivalent value of a small car in Kassel’s bars, pubs, and nightclubs. In hindsight, it would definitely have been smarter not to go out every weekend, but back then no one could foresee that real estate prices would develop like they have since 2011.

However, I would like to see that separately now. Back then, you chose the Kassel bar version (which was frugal compared to me), and that was fine for you, and you should be happy about the experiences.
Whether someone else must have therefore had a boring life, sat at home on weekends, gave up "everything" from their perspective (for you mostly bars), and had to be laughed at is a completely different matter.
Maybe he liked fishing, had and still has a good relationship, enjoyed nature, did sports, made campfires, sat with friends (not in expensive bars), liked tinkering, etc., and thus enjoyed the life he freely chose in his own way (without spending much money).
You present it as if a beautiful life between 15-35 could only take place in a way similar to how you decided for yourself; but that depends solely on your life philosophy and your friends if they laughed at you for a different life or for insufficient self-confidence at that age, if the laughter of others matters to you and you then live accordingly and hang out in bars.
It would be just the same if someone else now would be upset in hindsight that cocktail prices in bars were so high and he had no money for it due to his private situation.
That was HIS life, and he could make the best of it, and you did it differently in your life; that is exactly our freedom; it always has two sides. If real estate prices had stayed the same (as you probably assumed or simply did not consider at that age—I didn’t either), you would be on the winning side today; bars galore and still own a home or nice equity.
Now it is different, and you could simply be happy about your voluntarily chosen time from 15-35, just like the other person with his "boring life" for you. You are now deriving strength from the fact that things did not turn out as you would like, without having given up between 15-35; I find that almost presumptuous.
I know self-employed people who never wanted a boss and loved freedom and lived 100%, which I absolutely find great and partly have lived myself. When the well-behaved employee/civil servant then had the better provision in old age, the self-employed started complaining. The employee/civil servant had to endure that stupid boss all his life, which the self-employed gladly laughed at. Now the consequence for both lives comes, and one starts whining. He would like—very often—to have BOTH or EVERYTHING. Sorry, but I cannot perceive that as responsible thinking.
Where did you take the quasi-right that real estate prices have to remain such that they fit your life plan, i.e., to build a house without equity?
In my younger years, I probably spent a fancy S-Class and more... and would have liked to have that money again when it came to house building and rising prices. But I lived my young life as I wanted and did not let anyone tell me otherwise. Great. BUT... I always knew, and it is still like this, that I must bear the consequence, and I do so—WITHOUT complaining.
Peers had paid off their house by 40, but I still had 250,000 in debt. But I never complained about that (though I was often envious), because my life was voluntarily chosen by me.
That is MY responsibility and not that of rising prices, weekend home sitters, or years!
It is the life you have; I never understand why people make such comparisons with things they would never have wanted to live.
You lived like that, which I find right if it was YOUR wish, and now there are just a few consequences; that’s how life is.

Exactly that. You have to be 1. "mature" enough to save accordingly at that age and then really want to give up something. I myself bought a BMW that was expensive for my standards, was constantly on the go on weekends, and only saved for the essentials. Others had lost their zest for life for me and sat in the smallest apartment to save as much as possible. Personally, I don't want to miss my time. That way I know I didn't miss anything and can now be happy to lead a quieter life.

Yes, THAT'S how it is and now you have your life and are frustrated about the past. Whether all the others had a stupid life we don’t know and if so, they were responsible for it themselves. That’s how it is – to live your life independently, absolutely, but never complain if it hurts later in life. Then I think it’s great!

Pagoni, thank you! You expressed that well.

It's quite simple: if one person has only advantages, then someone else pays the price. In construction, for example, this would be lousy wages and working conditions. And if someone then explicitly "complains" that it turned out differently than the "only-benefit package," yes, that really comes across as very off-putting to me.