Maximum construction financing based on income

I want to, can't

"he always made every effort"

Again, from the perspective of the banker: Anyone who does not manage to repay a loan in 15-20 years in a low interest rate phase is doing something wrong.

Everyone can think whatever they want. Useful is something else.

Who judges what is useful and what is not?
Who knows ALL the backgrounds? And what does that have to do with "making an effort"?

I am irritated every time by the dedication with which facts are discussed disrespectfully here.

Then I wish all who can repay their loan in 15-20 years that nothing significant changes in their lives and that they can continue to do so.

Well, interest rates have fallen much faster than prices have risen. There's still some catching up to do... However, in my opinion, prices won't go up much more now.

Well, I think one should simply take a closer look at the numbers here. In the interest rate development chart from, for example, Interhyp, you can look at the development of 20-year loans. From January 2017 to January 2019, not much happened there. However, real estate prices did change during this time. With the often reported 10% annual price increase in the press, there cannot be any correlation with interest rates here.

If you then calculate a loan of 300,000 euros repaid over 20 years at 2% from January 2019, you end up with about 1,500 euros per month. If you calculate backwards at 1% interest (the level has not yet been reached), I arrive at a loan amount of 330,000 euros, or 10% more. At 0.5%, then 347,000 euros, i.e., another halving of the interest rate only increases the loan amount by 5%.

To me, that sounds more like " The real estate prices have long since decoupled from the falling interest rate." and not that prices have risen more slowly than interest rates have fallen.

Well, I think one should just take a closer look at the numbers here. In the interest rate chart of, for example, Interhyp, you can look at the development of 20-year loans. From Jan 2017 to Jan 2019, not much happened there. However, with real estate prices during that time, there was. With the often reported 10% annual price increase in the press, there can be no connection to interest rates here. If you calculate repaying 300,000 euros over 20 years at 2% from January 2019, you end up at about 1500 euros per month. If you calculate backwards with a 1% interest rate (that level has not yet been reached), I arrive at a loan amount of 330,000 euros, or 10% more. At 0.5%, then 347,000 euros, i.e., a further halving of the interest only increases the loan amount by another 5%. To me, this sounds more like " The real estate prices have long since decoupled from falling interest rates." and not that prices have risen more slowly than interest rates have fallen.

I’m telling you. The bottom seems to have been found. Anyone who believes banks give private individuals negative interest rates on their loans is mistaken. Real estate prices continue to rise in sought-after locations. I also don’t know why everyone always demonizes me when I advise against being too dependent on a bank. After all, I’m from the industry. Normally I would have to say: "You can be a little more."

It can also be calculated differently. If you look at the construction cost index, it was 90% of the reference year 2015 in 2010. In 2020 it was 117%. The 20-year interest rate was 4% in 2010, and 1.4% in 2020.

Assumed construction price 2015: 300k, which makes 270k for 2010 and 351k for 2020. Assumed repayment 1200€ monthly. This allows paying off the loan in 18.7 years in 2010, with total costs of 371k. In 2020 it already takes 24.4 years and costs a total of 411k.

Of course, you can play with this endlessly, choose other reference years, values, and loan-to-value expenses, and you will always get the statement you want.

But what it clearly shows: blanket statements about the oh-so-cheap low-interest phase are simply wrong!