Hello,
The problem is the increased raw material/construction material prices that currently outweigh the low financing interest rates. You get an overall good (cheap) construction financing, but you have to take out more credit overall.
That's normal. Just name me one area where prices have remained stable for "x" years. It's not possible – just look at your salary development?! Of course, I am many years older, but in my first year of training, I earned DM 375.00, was proud as anything because in the 80s that was not little. Today? If I just see what simple office clerks earn in their first year of training... that is really not much considering all the costs they have to cover as of today.
Counterexample: About 3 weeks ago, I talked with trainees (better said, I grilled them) – they couldn’t make sense of the term at all. Young people, all around their mid-20s and employed at private banks. They hesitated to talk about their salaries, so I asked Aunt Google (sometimes the internet is actually a good invention). These arrogant teens – I can hardly call them anything else – earn a good TEUR 60/year for something that was formerly simply “normal” and part of learning the profession. When I explained to them that they are being burned out – considering hours worked and performance – they wouldn’t accept that and argued that all “higher” positions were open to them because they studied business administration and are being further trained by a “bank” (which pays trainees best; [which btw. is not true, Bayer® alone already pays more]). One example of their statements: if after the trainee phase they were offered a job where they would only have to work from 7 a.m. to 9 p.m., they would be happy. I almost vomited at such bullshit... alongside today’s parent generation and EPS people (Swiss elite forge), they are now on my list of those I hopefully will not have to advise anymore!
Nothing can be changed about construction prices, so you have to get the best out of the financing, even if it’s just a decimal point.
Earning money also costs money, nowadays even for negatives; so you can’t leverage that either?
But honestly? When I remember the interest rate we had to finance at AND did so, and you – and probably the current majority of potential builders – complain about an increase of one decimal place ... that’s not normal in my opinion. Whoever builds a house should not be dependent on whether the interest rate is 2.3 or 2.4. If that is the case, there is something more wrong than 0.1 percentage points more or less. There is life beyond the house
Currently, one of our builders has raised his house prices by 7%!
Sounds about right if he didn’t pass on the increase as of 01.01.15.
Rhineland regards