Is building a house becoming cheaper now?

And what does your daughter need so much space for? Huge rooms or each two, three rooms?

I agree with that opinion. Through the bond purchases, the ECB has lost control. Now we are seeing high inflation which is driven by external factors, but the ECB is practically forced to do nothing due to the dependence on the southern countries. Through further purchases of these bonds (and the sale of, for example, German bonds), the ECB has become nothing more than a bad bank with junk bonds. The euro will probably really fall. Maybe there will be a successor that really pays attention to compliance with certain stability criteria.

I don’t think the euro will fall. It is more likely that the debts of the euro countries will be socialized. Either way, it would definitely be a major event…

One must always keep in mind. The euro is starting to erode. Compared to many other currencies, we have already lost 20 percent. Without massive interest rate hikes, the currency depreciation will quickly continue.

Misconception, unfortunately. A classic inflation arises because the engine overheats. People are doing well, the industry can no longer meet demand, prices rise. Higher interest rates then slow down the engine.

That is not the case at the moment, rather the opposite. Many can no longer afford even the most necessary things, interest rate hikes will worsen the problem because companies will also be pressured by having to finance loans more expensively...

The supply of goods is tight because Russia is waging war against Ukraine and corona has destroyed supply chains, including microchip supply. Rising interest rates will neither end the war in Ukraine nor repair global supply chains.

The best way would therefore be to endure inflation for 1 or 2 years now and accept that freedom and independence in supply chains can cost money or prosperity.

And what does your daughter need so much space for?

First of all, I have to say, I believe no one has dared to ask Rick2018 why he and his wife (2 people) need a living area of about 435m2, exactly the same area that my child with their family (4 people) will hopefully be able to call their own by the end of the month.

Apart from the architectural style, there are many parallels. His plot is a bit smaller than my daughter's, his pool is twice as large as my daughter's (existing and they wouldn’t want to build it), he grew up with 4 people in 85m2, my daughter grew up with me in 75m2. And the real estate prices are almost the same, although Rick has top-of-the-range standards, which my daughter can only hope to reach halfway within the next few months with a lot of luck. So, a shack versus a new build.

Unlike Rick, there will be more rooms, a multipurpose room of 100m2 is not just a wish. You also need more bedrooms, also because the parents on both sides usually live abroad and stay longer than one day when visiting. The biggest wishes are a large utility room and a proper wardrobe with cabinets. Kitchen and dining room will be one room of probably just under 40m2, the kitchen will probably even be somewhat smaller than the old one you probably know (finished kitchens). One finally gets their own office. The gym will be moved to the garage because the garage can hardly be reached by car anyway.

The living area results a) from the desired residential area (children’s school in the next village), b) the wish for more distance to neighbors, hence the larger plot, and c) appreciation in a sought-after area if the renovation can be done such that it results in added value. And if you want a larger plot, you usually have investors breathing down your neck who want to put several houses on it. But due to the political and economic situation, they are holding back at the moment and you can strike. So basically you are buying the plot WITH a house on it, regardless of condition or size.

Hello everyone. We currently have the idea of financing an existing property with the help of the L-Bank. Renovation costs can also be funded, but must be prepared and submitted with the help of an energy consultant. I can't really imagine how that is supposed to work because the property has to be inspected beforehand, so you have to pay for that yourself first?

From the feeling, prices are generally getting better (Northern Baden-Württemberg), but as some have already written here, you have to plan for over 100k. Our plan was initially to cover the roughest parts like insulating the exterior facade and new doors – can you manage with 100k? Own work would at least be conceivable for the doors/windows.

Or is everything rather difficult at the moment?

Misconception, unfortunately.
A classic inflation arises because the engine overheats. People are doing well, the industry can no longer meet demand, prices rise. Higher interest rates then slow down the engine.

That is not the case at the moment, rather the opposite. Many can no longer afford even the most necessary things now, interest rate hikes will worsen the problem because companies will also come under pressure as they have to finance loans at higher costs...

The supply of goods is scarce because Russia is waging war against Ukraine and Corona has disrupted supply chains, including microchip supply. However, rising interest rates will neither end the war in Ukraine nor repair global supply chains.

The best way would therefore be to endure inflation now for 1 or 2 years and accept that freedom and independence in supply chains can indeed cost money or prosperity.

The supply of goods has absolutely nothing to do with the war in Ukraine. That is rather due to Corona.

The ECB cannot fight inflation because the southern countries will become insolvent.

So your suggestion is to sit idly by and do nothing while the industry moves to the USA? Think about why the USA is pushing its subsidies for the green industry at all costs (Inflation Reduction Act) and supporting only domestic production, i.e. our products will become too expensive. Europe once again produced nothing but hot air, following the motto that you don’t do that among friends. Friends normally don’t blow up pipelines either.