Interest rate development current situation. Build now or wait?

  • Erstellt am 2021-02-10 16:34:34
J

Jean-Marc

2021-02-11 15:02:27
  • #1


You don’t need to feel sorry for these speculations. Among those who have acquired property in recent years, there are more than enough who have driven prices up themselves through insane bidding wars, financial overestimation, and their own price speculation, so that the reasonable and conservatively calculating middle class has often been at a disadvantage. I don’t think such people should be pitied if they lose their house and thereby give those a chance who until now were not willing to pay any sky-high price.

At the moment, nothing points to a sales wave, the crisis has not lasted long enough and it hits the wrong people. Hairdressers, restaurant professionals, retail salespeople, event technicians, etc. are more likely to pay rent than installments. No one knows what will happen in 1-2 years, but looking back, it was almost always cheaper if you had built or bought three years ago. A small insight: We (the bank) have, alongside construction financing, our own real estate department and our own agents. When we advertise properties in the newspaper on weekends, a "prime piece" sometimes quickly receives 70-80 inquiries – despite Corona. But at the moment, very little is coming in, real gems almost not at all, and we only advertise those at most for promotional purposes, since the list of registered, well-off interested parties is more than long enough. The economy would really have to crash hard (complete factory closures, etc.) for the situation to noticeably ease even for normal earners with limited equity. The only downside is that the more the economy goes downhill, the sooner one’s own job may also be directly affected.

In summary: As soon as it is financially reasonably comfortable for you, get started and rather don’t wait.
 
P

pagoni2020

2021-02-11 15:25:44
  • #2
It is absolutely important to honestly consider your own behavior and needs, as well as the willingness to explore subordinating some things/habits to the desires of your own home. Everything has its price, including your own home, but if it is very important to you, then it is worth the price.
The question is which levers you can/want to work on, what your priority list is, or how it can be changed so that your life is still nice afterward.
For example, I am someone who likes to live a bit more generously/nicely but has always been willing to commute further to work, significantly change the workplace, or other habits. Children, for example, want this the least, but they can ultimately benefit from such a change.
We are now building in Saxony, and I have been observing the local real estate market for a long time. Although there are probably fewer people willing to move/sell at the moment due to Corona, I still remember a few interesting properties that could have appealed to me after we allowed our imagination/willingness for change/calculation to take effect. It quickly became clear to us that we had to expand our search area to find something for ourselves. If Corona hadn’t come along, we would have found something.
Especially when building new, you have to be alert because a) you have to build at least according to the Energy Saving Ordinance, which is costly but completely okay, b) you are quickly led into a kind of herd mentality where you can no longer even consider simpler things, and c) you want to do it "right" when you are building new.
I could imagine that if you loosen the search area a bit and possibly plan a "move" out of the current area, you might find something that can also be optimized gradually; I have always seen such properties from time to time, far away from the many overpriced "junk." Clearing your head properly and possibly changing or repositioning your living conditions can be just as much a path to the desired house as taking on huge sums of money for a new build. Looking back, our results were always completely different from our original search criteria.
I would be cautious with self-labor. If you save money, that’s nice, but often the necessary qualifications are not present or only partially, which makes the project more expensive again. Moreover, you cannot tell a free helper that you do not want it done that way, and understandably the helper might expect help in a similar form in return again sometime. Do you want/can you do that...?
 
A

Alcedo atthis

2021-02-11 21:39:45
  • #3


I would love to move far into the countryside, since I don't gain anything from the city anyway. But unfortunately, we have to search within a certain radius because I am absolutely tied to the city. When I am alone with the child, I cannot commute one hour each way. In addition, I take care of my grandmother, who also lives in the city.

We would only take on DIY tasks that are possible. As for the foundation slab, a friend does this professionally. My husband actively supported his own house construction and would do so immediately without being asked.
 
P

pagoni2020

2021-02-11 22:00:22
  • #4
I just think that it is worth searching for possibilities for one’s own life and especially to think outside the box and even consider the unthinkable. Because – EVERYONE wants to be in the city within max. 30-35 minutes, EVERYONE wants this and that within so many kilometers, etc. And exactly THERE the interested parties gather. If you break a few of these parameters, you often have a significantly better selection. And believe me... Everyone is tied down, I was the same when I built back then. All my colleagues told me that we couldn’t move so far out because of this and that. It was the same with me, too, but on my priority list was a house, a plot, and that it be affordable. So I swallowed some toads, which in the end were no toads in the overall view, but the price for it. I’m not telling you to do that, but thinking bans and too many of the usual parameters throw you into a big pot of competitors who are often even more financially strong. My wife is also tied to the city, namely because of her job, her mother, children, and circle of friends who predominantly live there. Still, we are building 40 km outside, 50 min drive. So what...that’s 15-20 minutes more... but in return a nice home. Okay, you might have to rearrange life properly, but in return you get something else. What is the alternative? If there is one, that’s fine. I just know from my own experience that it is very difficult to detach oneself from the familiar or to see it as unchangeable. For hardly anyone is it easy or simple, but it is usually a matter of prioritizing the house/living. I have seen colleagues complain because they had to change their office floor (seriously)... these are extreme cases; but in the popular commuter belt it will be hard to find something suitable for you. The colleague is helping with the foundation slab and so on, that’s good, but the entire house construction involves other figures and activities. Besides, depending on the type of project, it is not even possible to do it yourself or it is not advisable for reasons of liability and procedure. We would have liked to buy a nice house between DD and Leipzig recently, which was unfortunately snatched away from us at short notice despite a verbal promise. The place or region would not have been the dream of my sleepless nights, but such a house would have been unaffordable elsewhere. Just like now with our new build. You can’t even think of such a plot anywhere else.
 
Y

ypg

2021-02-11 22:09:19
  • #5
Now that you mention it: the renowned prefabricated construction companies only have BoPa or basements built by certain external companies, such as Glatthaar, because they have to rely on the quality.
 
A

Alcedo atthis

2021-02-11 22:22:08
  • #6


That's why I originally wrote that it probably wouldn't be possible anyway.
 

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