WilderSueden
2022-09-20 14:01:51
- #1
Of course, interest rates were higher back then, but construction costs and purchase prices were lower in relation to income. Even in rural areas and with everything slimmed down, today you can hardly build for less than a total budget of 500k (=house, land, kitchen, outdoor facilities, additional costs...). That means with 20% equity (at least 100k) still a 400k loan. At 3.5% interest, that’s a mere 14k in interest and for a 25-year term a rate of 2500€. That is no longer affordable well beyond the median income.
And yes, of course you can only compare today’s new build to a limited extent with the standard of 1970 when uninsulated 30 cm walls were built and tens of thousands of liters of heating oil were consumed every winter. Just like any cheapest economy car today looks good in terms of equipment compared to a car from back then. But it’s not that only luxury mansions are being built and that’s why building is becoming too expensive. That also applies to Town & Country basic equipment
And yes, of course you can only compare today’s new build to a limited extent with the standard of 1970 when uninsulated 30 cm walls were built and tens of thousands of liters of heating oil were consumed every winter. Just like any cheapest economy car today looks good in terms of equipment compared to a car from back then. But it’s not that only luxury mansions are being built and that’s why building is becoming too expensive. That also applies to Town & Country basic equipment