KfW BEG funding stopped 261, 262, 263, 264, 461, 463, 464

Honestly, which financing is being "screwed up"? There are "only" (repayment) grants. The loan remains unchanged (which is sometimes even cheaper at the bank than at the KfW), just as high without funding as with funding. The risk has always lain with the bank and not with the KfW (and the bank has already approved the risk). So a large part can switch to classic bank financing and "only" forego an increased repayment.

"Only" indeed. Although I claim for myself that I have calculated my project relatively conservatively (or maybe because of that), the repayment grant makes up 9.6% of the debt capital (which incidentally shows how absurdly high the subsidies were). In addition, money may have already been spent on the energy consultant even though one would no longer need them now.

Clearly, a solid financing does not break because of that, it can be financed like this as well. More problematic is that it is now unclear how things will proceed and a signature now will probably invalidate a subsidy in 2-3 months (project start = signature). At the same time, prices cannot be fixed with the general contractor without a signature, nor can financing be finalized. Certainly a very unpleasant situation, especially at a time when no one knows where construction prices will stand next month.

What on earth is supposed to happen with new and additional living space?

From an economic perspective, a new building with subsequent rental is hardly feasible at current prices. The requirements from an energy and urban planning point of view, the land prices, and other parameters make it uneconomical.

In addition, there is landlord-unfriendly case law, rent controls, enormously increased ancillary costs, and a rising landlord risk due to rental defaults.

I am a landlord myself, but a new construction project with such small returns makes no sense. Without government incentives, there will be no relief in the housing market. At least not for the low-income population groups. And these will increase in the future.

And we also have a huge dilemma. Even if salaries were to rise, due to tax progression and the increasingly greedy state power, we will have barely any net increases.

Yet hardly anyone gets upset about this. The high construction costs are not the problem. The problem is the low incomes.
When some write here that they have a net income of 6000 euros. Fine.

In Switzerland, every cleaning lady earns that. Alone. Net. And their real estate prices are not that far away from that anymore.

In Switzerland, every cleaning lady earns that. Alone. Net income. And their real estate prices are not that far off anymore.

But everything in Switzerland costs double or triple. I can see the wealth of Switzerland in every supermarket parking lot here and especially on Saturdays when people from behind Zurich drive an hour (plus Swiss shopping traffic jam) to Constance to shop... Switzerland is beautiful, but I wouldn’t want to live there permanently.

That is always relative. The German consumers drive to Poland or the Czech Republic. I know many who go to Switzerland to work. They all laugh at us.

Why are they on the brink of collapse? Please explain it to me. The exact why.

If you are really an expert, you should actually know what that means.

An example that stuck in my mind: Mother (retired) plans with daughter and her family to build a two-family house according to KfW40 on a separately purchased plot. Seven percent price increase from the general contractor had already been announced for early February. Therefore, financing should be secured quickly before the price increase. Bank says on Wednesday, that can wait, we’ll do it calmly next week, KfW55 customers currently have priority because it’s urgent. Monday the bank calls, the financing does not go through because KfW has stopped the corresponding subsidy program. Without financing confirmation, no contract conclusion with the general contractor. The price increase can no longer be avoided and must be borne in addition. No clarity about future subsidies, everything uncertain. Plot bought in the trust to be able to build according to KfW40. If the new program - whatever it looks like with the already announced tightening – exceeds the conditions, the plot was bought for nothing and real estate transfer tax, land registry and notary fees were wasted. Unclear at what price it can be resold now that there is initially restraint.
That’s not how you treat people, I’m sorry.

And on top of that, there are advanced planning costs and massively rising construction interest rates in the next few weeks…. So I can now put a checkmark on it and plan everything down to Kfw70 and get started (but that also costs quite a bit since the entire detailed planning has to be redone) or wait an indefinite amount of time until there might be a new subsidy and watch the rising interest rates passively. I am not allowed to start if I want to remain eligible for funding. This is how builders are simply left out in the rain.