Interest rate development current situation. Build now or wait?

2021-02-11 07:34:48

Just quickly on that again, but please don't misunderstand ;) The economic situation in Germany is certainly open to debate. There were different opinions even before Corona, but I am certainly no expert. And as I already mentioned, we are not sitting at home waiting for it. It was merely a thought whether prices will stay the same, rise, or fall.

Just calculate everything for yourself. You know what you earn. How high is your savings rate and your housing expenses? With a household income of around 4000€, you can manage roughly 1300€ loan installment + 300€ additional costs. Are your savings rate + housing currently 1600€? If yes, okay. If no - adjust your lifestyle accordingly and force yourself to save at the beginning of the month. If everything above is green: You have no equity - so it amounts to full financing. House plus land should in total be less than 100 times your household income. Does that fit in your region when buying an existing property? Otherwise - 2000 - 2200€/m² house as a guideline, plus 20% on top for additional costs. Then you can calculate what you can spend on a plot of land. If still green: For example: buying land + continuing to save is probably a good starting point. The reason is the big price driver.

2021-02-11 07:38:02

@TE: please don't take this the wrong way – but when I see in our areas or hear from friends/colleagues who is building a house, sometimes it really makes me feel sick and somehow annoyed.

For me, a house involves a certain frugality, equity reserves, a necessary income situation, and that everyone pitches in and strives to achieve this goal together.
It seems to me that just about anyone can put up a little house and pay it off – as I said @TE, please don't take this the wrong way!

But the fact is that the costs for a home are enormously high, which not every family can afford – especially not immediately, right here and now!

Surely not everyone just buys a Porsche on a whim, right?

There is certainly a reason why some houses have to be sold...

Based on your life situation, income circumstances, and reserves, in my opinion a house is currently not feasible.

Our society nowadays wants everything at once. Career, having a child, building a house, vacation, traveling the world, breaks before/during/after studies, earning money for the first time at 26, and so on... My opinion is probably still somewhat old-fashioned: you just can't have it all :D

As I said, I don’t know if you will be happy with such a high burden and your living conditions right now. The market situation will neither improve nor necessarily worsen in the coming years. Maybe you should just see how much you can really save in 1-2 years and then think: hey, can I afford this, do I want to afford this, or not?

But as I have mentioned several times before: just go to a financial advisor and have it calculated for you – afterward, you can assess the situation much better (we only have very few detailed data about your circumstances here).

I certainly understand the thought behind your statement, but... I am definitely not someone who simply didn’t want to save in my life yet. Maybe some can’t imagine this, but back then I fell ill right after completing my training. My salary was already very low and sick pay is calculated from that. In addition, there was the co-payment for every medication, and there were many of them. Even the trips, which amounted to 2-3 times a week, to the outpatient clinic I had to pay extra for. I had no family who supported or financed me. My husband interrupted his further education back then and declined many projects to support me. That’s why statements like these do affect me a bit. Even if they certainly were not meant that way. You shouldn’t always generalize everything.

I have found an independent financial advisor and will contact her today. I like the idea of financing the plot first.

2021-02-11 07:38:54

That's just how people are.

What you describe is envy and in my opinion borderline antisocial behavior.
Especially this here:

Certainly no pity when forced to sell :D

or decline.

I would say goodbye to this thought. Even when building a house, I would assume at least the targeted inflation.

2021-02-11 07:44:51

What you describe is envy and in my opinion borderline antisocial behavior. Especially this part:

Well, people are probably just different like that.

For me, it’s more about fairness, or rather, "that’s just how life is."

If someone gets heavily into debt and buys something they actually can’t afford and thus ends up in a difficult situation (which might even have been preordained – as is already visible in many places nowadays), they definitely cannot expect sympathy from ME. For me, that is not antisocial behavior. Such a person has to pull themselves out of the mud in my opinion, since they messed up themselves.

It’s certainly also because I had two such cases in my private environment – I knew that it could never work.

Why should I feel sorry for such a person?? Give me one reason.

I am simply honest and say what I think.

I generalize many things harshly because it applies to some (also in my environment). Maybe this also sensitizes the OP a bit and shows a different opinion so they can consider whether it applies to them or not.

In a forum everyone is anonymous – here you can certainly express things that many think and that you would never hear in a direct private environment, but which in my opinion are totally important. It’s not all peace, joy, and happiness. Absolutely nobody here knows the OP personally, knows their story or anything else. Here you have to generalize and look at the numbers and facts. This gives the OP a different perspective.

Here everyone has a different opinion on it, which is certainly a good thing.

2021-02-11 07:47:14

I think you have already taken the right step with the financial advisor. I would at least make sure that I can cover the ancillary purchase costs from equity. More would of course always be better. Otherwise, the option to search for a plot of land, buy it, and initially finance it variably is also good if you want to build, which I assume since we are here in the [HausBAUforum] :)

2021-02-11 07:47:35

I certainly understand the thought behind your statement, but ...
I am definitely not someone who simply never wanted to save in their life.
Maybe some can't imagine that, but I was newly trained and sick back then. My salary was already very low, and the sick pay is calculated based on that. On top of that came the co-payment for every medication, and there were many. Even the trips, which amounted to 2-3 times a week, to the outpatient clinic, I had to pay extra for. I had no family who supported or financed me. My husband interrupted his further training at the time and declined many projects to support me. That's why such statements affect me a bit. Even if they certainly were not meant that way. You shouldn't generalize everything all the time.

I have found an independent financial advisor and will contact her today. I think the idea to first finance the plot of land is good.

You see? No one here knows your story – so you should never take certain statements personally. They are merely meant to give you a different perspective that you might never experience in your private environment.

As bad as all this is – it doesn't change the fact that it is currently even much harder to afford your own home, right? I'm simply a fan of "proving yourself" first, seeing if you are able to repay a loan, saving, possibly finishing your partner’s further training, etc., and then – save, save, save.

But as you can see, you get advice in every direction here – so you can decide for yourself and filter out what helps you.

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Interest rate development current situation. Build now or wait?

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