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

Please look up maturity-matching refinancing. And then we'll see how it works with banks. But certainly not like you indicated in your example.

Shall we continue to be offended? That always involves at least 2 people. And you simply have to be able to rise above such superficial statements. It's always a matter of perspective. For many, I am certainly a "Bonze", for others rather a poor devil.

Good morning,

Yesterday, when I first skimmed through this thread, I was already itching to respond; unfortunately, I only have time to reply today, on my way to Dortmund.

If interest rates rise, building will definitely become cheaper. Demand decreases (see above), so construction contractors, material manufacturers, etc. have to share an ever-smaller pie, which inevitably leads to more competition.

How do you come to the conclusion that "building a house" becomes cheaper when interest rates rise?

I’ll gladly explain what will happen: the market for building single-family homes & co. will finally "normalize" again. Currently, interest rates are historically low, which has led many people to sign a contract for a piece of house that, upon closer examination, they could not and cannot actually afford. These contracts have only a very small share gone to those I would describe as reputable providers. Majority-wise, companies like Billigheim & Co. are pleased with well-filled order books. This will— and here I dare to predict—prove true in the coming months with increased customer dissatisfaction. Because one thing is for sure: the complaining homeowner will not look for faults on their side; that would be too painful. No, they will happily use construction diaries to put the evil contractual partners on the spot.

The "decreasing demand" you mention will therefore not hit the market of reputable providers; nor will these providers reduce their prices. They simply cannot, because a ton of Ytong/highly perforated bricks or whichever stone it may be does not suddenly get cheaper from the manufacturer. Nor will the craft businesses want to pay the price; rather, jobs will be cut. Incidentally, the reputable providers/craft businesses will also be able to survive a - temporary - worse order situation without having to resort to some of the strange excesses of our job.

Ah yes, the banks were and always are the good guys, right? You don’t really believe that yourself! At least I don’t need to insult anyone! Great forum!!!

I do not particularly appreciate your style here; meaning, I do appreciate traffic—mostly users like you create a "more" of it—but not at the expense of an otherwise factual forum style!

If you get "headwind," you have to be able to deal with it, because this forum is certainly no wish concert. And whether bankers are fundamentally worse people, you can easily answer for yourself. Are you absolutely sure that, if you were employed in a significant position at a financial service provider during the last banking crisis, you would have been innocent? Opportunity makes a thief is an old but still valid saying.

If you cannot answer this question spontaneously and 100% with "yes," you should stop pointing fingers at others. Because even here, you seem to forget that three more point in your direction.

Rhenish greetings on the go

It is quite astonishing that you think you can exclude market economic conditions in the area of single-family home construction, while considering them obvious for other areas of life (used car purchase).

Furthermore, do you consider the majority of construction companies to be unscrupulous cheap operators?

The past has also shown for the construction industry that these principles apply there as well. Why should it be different this time? Even the "good" construction companies are earning well or very well in the current economic phase and can/must adjust their margins in a worse environment.

And why shouldn’t Ytong and Co. lower their prices if it is necessary to secure market shares or gain new ones? Especially building material producers are huge companies that enforce strategic goals like market share even at the cost of margin in a declining market.

Morning,

apparently some people here have problems with other opinions, below is my initial thread again. So a "factual" forum I am immediately labeled as a "lateral thinker," a factual discussion did not come from any participant.. but hitting on that always works.

Maybe read everything from the beginning and not pick something out in the middle..

I have no problem with headwind, nor that someone does not like my opinion. People also have to live with what I then say.

Well, it actually wasn’t my intention to spice things up here either, of course I don’t let anything slide. I want to thank those who tried to steer the conversation back to the topic.

Regards

Hello,

We are also watching the interest rates and were not very pleased that there is now an upward trend. I consider this counterproductive from the banks, as many people are currently getting used to the idea of wanting to build in the next one to two years. Like some others, we too find this only discouraging and have put things on ice again. Certainly, this can only be a snapshot, because there is already a summer slump and in autumn it can look quite different again (cheaper).

In the position of the banks, I would not turn the screw so much... That will backfire.

Regards

Tell me, you don’t want to understand what several discussion participants have already tried to explain to you about the topic of interest rate change mechanisms, do you?

Overall, your writing style is somewhat unusual.

On the one hand

I have no problem with headwind, nor that someone doesn’t like my opinion.
People have to live with what I then say.

..., of course I don’t let anything pass.

on the other hand something like this:

apparently some people here have problems with other opinions, below again my initial thread.
So a "factual" forum I am immediately branded as a "lateral thinker," no factual discussion came from any participant.. but hitting on that always works.

If you can’t handle the echo, I would fundamentally reconsider your formulations.