Own home: interest rate development / interest rate / interest rate increase / conditions

The banks certainly aren't doing themselves any favors by tying themselves to all those 1.4% interest loans that they will have to finance with 2% government bonds in 5 years. You are of course right - I believe they were a bit shocked themselves when the yield temporarily increased tenfold.

Nevertheless, your argument about "3 years ago" is also not entirely unproblematic - house prices always lag somewhat behind interest rate developments and are currently very high - significantly higher than 3 years ago.

That's exactly the point! And in addition, you also have to build up reserves for maintenance, everything must be well thought out.

Apparently, I ended up in the bank friends/posh forum, the way you express yourself.

We can only boil with water, sorry! Regards

Yes, unfortunately that is the case - but factors such as different standards and inflation also come into play.

I'm curious anyway how it will be when interest rates are back at 3 to 5 percent. Will the bubble finally burst then?

Yes, the evil bank bosses... I'm just realizing a lot now

Interest rates are still historically low – so what should everyone say about three years ago?

I can’t listen to this argument anymore either: - Land prices - Construction costs - Requirements for construction (Energy Saving Ordinance, etc.) - Additional costs (property transfer tax, other incidental costs up to GEZ and tolls) - VAT rate (used to be 14%, the older ones will remember) - Interest rates during the savings phase - Real wage development - Government subsidies (home ownership subsidies, what was that called back then?) - Need for additional private retirement provision (how many euros per month does that consume? What was it like 20 years ago with 7% interest?) Okay, on the other hand: if I build today without a second shower, everyone looks at me askance, wondering how I can do without it. That, of course, contributes significantly to cost increases! Energy efficiency measures are partially offset. And, yes, life three years ago was hardly different from today. Only the people who took out loans at some interest rates 20 years ago should please not tell me anything. Several other parameters have also changed over the years...

I’m curious how it will be when interest rates are back at 3 to 5 percent. Will the bubble finally burst then?

What bubble? I don’t believe building will be cheaper then.

Which bubble? The real estate bubble, of course - and it already exists in many regions.

I also can't imagine that building will become cheaper - but if the interest rates really rise, how is that supposed to work then? I lack the imagination for that anyway ;o)

I wonder where the increase comes from? Have the reasons for the overall situation, e.g. Greece, changed??