Interpretation of Seller Behavior

Only in case someone reads my last post, I must have mistyped on the calculator somewhere :/
It is actually €33,120 warm rent per year, so only about 38 annual warm rents. But that doesn't make it a bargain either.

Annual warm rents have as much significance as the weather in 2 weeks will be.

What counts is the cold rent, and you cannot derive it from that to assess it.

Yes and no. Since the cold rent is always less than the warm rent, it will definitely be well over 38 years, I estimate rather in the range of 45 years' cold rent. That is definitely far from the 15-20 I once learned as a rule of thumb. But of course, as a real estate agent, you can also obscure the unprofitability of a property like that ;)

You don't need to tell me how it works. Everyone knows that the cold rent is lower than the warm rent. Well, and that's where it ends. You can't calculate anything because you can only estimate the additional costs. And yes, the times of 15-20 times are long gone, back then the interest rates were also different. I myself bought apartments a few years ago that were at 25-28, these are today at 15-20 due to rising rents, etc... if you only ever looked at the current point and assumed like you do, no one would buy anymore. My motto is expensive today, cheap tomorrow... but I know that you are one of those who keep talking about a bubble and waiting for it to burst... only what does the value of my property matter to me if I don't want to sell??? Nothing... I am more interested in rent development, etc. Everyone has to decide for themselves with which factor they want to buy... I know enough who have been waiting on the sidelines for years and are still kicking themselves. The money is in the fixed deposit account and they celebrate their 0.25%... and return is only interesting with a property if I finance it completely with equity and not with debt leverage.

I am not waiting for something to burst. The plot is reserved, house planning is gradually progressing, and with a bit of luck, I can move in within 1.5 years. After that, there won’t be any money available for real estate speculation anyway. But it is also clear that this house in Munich only justifies the price through two expectations. First, that someone will be found in a few years who will pay even more, and second, that the rent can be significantly increased. Such houses exist everywhere; here in the neighboring house I could have also bought a 3-room apartment (unrenovated old building approx. 1980) for over 40 years’ worth of rent. The price is justified by the same scheme; there is no fundamental basis for it. Everything depends on the expectation that prices will keep rising. Maybe it will continue like this, maybe not. The only thing that is clear is that many people will have a problem with 1500€ rent, and perhaps politics will put an end to that, especially the left wing, which is known for ideas like rent caps and rent control.

Here in the Rhineland, 1500€ rent is nothing special anymore and enough people can afford it. And what rent caps [Mitpreisbremsen] cause can be seen in Berlin. It has only made everything worse... Supply and demand, quite simple... And no, not everything lives off expectation. That is partly called inflation, etc..