How is the construction boom? Still there?

  • Erstellt am 2022-09-19 12:45:39

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
 

Gelbwoschdd

2022-09-20 14:36:01
  • #2
With that, you refute your original statement that it is only due to higher interest rates and confirm mine, all good :)
 

WilderSueden

2022-09-20 14:47:45
  • #3
In the short term (about 2 years), it is mainly the interest rates and less the construction costs. An additional 80k loan at 0.7% is still somewhat manageable if you haven't financed at the absolute limit. But at the current interest rate, I probably wouldn't build anymore even without a price increase. That would be way too much financing at the limit for me.
 

kati1337

2022-09-20 14:58:29
  • #4


My parents also financed at 9% and were not necessarily wealthy. But that was a different time. In the village, everyone knew people who could help, and much was done on their own. Back then, construction itself was technically not so demanding yet, I think. And there was no BG Bau writing to everyone asking who would help on the construction site. :D On Saturdays, a whole group of private helpers from friends and family was fed, but building costs were almost at material prices.
My mum recently said that with the way we build now (general contractor, high loan), they wouldn’t have been able to build back then. The incomes just didn’t allow it. I think it’s simply very difficult to compare regardless of the interest rate.
 

LastCookie

2022-09-20 16:14:38
  • #5


At least the prices for existing properties have dropped significantly. This is partly due to the interest rate and partly because these houses are 99% equipped with gas or oil heating, and everyone is now trying to quickly get rid of their RHH in a profitable way before it really "crashes." When the market is flooded with offers and demand decreases, the price goes down. My builder told me that building materials are becoming more expensive. Concrete, iron... currently there is also great uncertainty in the window industry, and roof tiles are no longer available (luckily mine were ordered 3 months ago).
 

Benutzer 1001

2022-09-20 16:35:35
  • #6
And then build a carport yourself. The flooring and the paint anyway.. The outdoor area will come eventually. We have all seen this before.
 

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