Situation in the real estate market... madness

Here come some really absurd arguments.

Of course, a general truth is derived from 1-2 anecdotes.

The fact that Pamiko’s condo was sold at a loss is rather an exception, because if you look at real estate interest rates over the past 20 years or longer, they have dropped enormously. The rising costs correlate with this. I often say it, but the majority of people finance and buy real estate up to a value they can just afford monthly. If interest rates go down, you can borrow more money and pay a higher purchase price. A nice spiral that has worked well for more than 20 years. Congratulations to everyone with a property.

That’s why I also find it nonsense to philosophize about absolute house prices. €300,000 for a property is nothing today. Borrowing money is virtually free. But imagine this sum at 4% interest, which was "normal" back then. It will get tricky for property owners if interest rates - for whatever reason - rise again. Or even fall into negative territory.

Just two remarks: 1. why doesn’t he move out if everything is so terrible? 2. of the €340 housing allowance (actually means service charge) €250 are operating costs like heating etc., the rest is the maintenance reserve. He also has these operating costs as a tenant. Alternative as a tenant would be €700 cold rent (not in a metropolitan area or special location) and €250 additional costs. Which is probably more financially attractive?

Why doesn’t he move out? No idea. I haven’t asked him... But I could imagine it has to do, among other things, with the social environment, which a retiree doesn’t just want to change?! Yep, I meant pure service charge. Additional costs were added on top. When I asked him why it was so high, he said that the other owners are implementing many new things (balcony, stair railing, entrance door, etc.) and unfortunately he has to pay an enormous share proportionally because he owns the largest apartment.

That’s why I also find it nonsense to philosophize about absolute house prices. €300,000 for a property is nothing today.

Well, that’s exactly the point. €300k is nothing for a house today. But still an enormous amount for a normal earner! Just because the price of something has risen immensely doesn’t mean that everyone can afford it. And whether they financed it at 4% or more back then doesn’t make the situation any better today. It was already bad then too. I envy NO ONE who brings home less than €6k salary and has to pay off >€400k. Quite the opposite. So much living is lost there... But we humans are masters at talking things up as soon as we want something! Thank God I only do that with much smaller amounts... (fridge, washing machine, etc). But hey, everyone as they see fit.

I envy NO ONE who brings home under 6k salary and has to pay off >400k. On the contrary. So much life is lost there...

Has it actually done so in recent years? A young family in their early/mid 30s then has a payment of 1,500€ with a 30-year term (i.e., about 4.5% annuity) and can still spend 4,500€. What can the family not do that, for example, can be done in Düsseldorf/Frankfurt/Cologne/Munich, etc.? There the new-build apartment quickly costs 1,500€ for 100 sqm – so smaller than the house and not to mention the garden and quality of life (which is the argument for most owners).

And of course the cities do not designate any new building land, that would spoil the surroundings... (to what extent this is even possible at all is left to their imagination). Of course, this has the nice side effect that existing building land and old properties become insanely expensive.

Well... probably less spoiling. I know you mean it ironically. Still, the sealing in new development areas is no longer acceptable nowadays or has many disadvantages.
There is an interesting parallel running thread here: Of course I am happy for that he got a spot for his end-terrace house, but you can currently read in his thread how sealed the whole new development area will be. Unfortunately, the builder doesn’t even have space for a house tree anymore, and whether the municipality will green areas there is also questionable.
I hope goalkeeper has not restricted his profile like you did, because then you can browse through the thread.

Specifically in the KR, Moers, DU south left of the Rhine area.

Because we already live in a mid-terrace house (rental), we know quite well what we don’t want.

I once entered Moers with a 10 km radius on Immonet. About 170 houses came up... With the preset distance to Moers, I don’t see any excitingly expensive houses, nor any dumps. The prices remind me of our used houses near (cheap) Hamburg.

And since you apparently specifically reject things, you miss some opportunities, and the pressure will not be that high.

I envy NO ONE who brings home less than 6k salary and has to pay off >400k. On the contrary. So much life is lost there... But we humans are masters at rationalizing as soon as we want something! Thank God I only have that with much smaller amounts... (fridge, washing machine, etc).

I feel the same way. It’s crazy how people calculate to the last penny, and something of their own must come no matter what...
We Germans were taught that you find retirement provision in a self-occupied property. I live the same way, but with only rent-like burdens that definitely don’t hurt. Without children, you’re flexible.
Children are often used as an argument that they should grow up blameless and free. As if they couldn’t do that otherwise. The poor kids are fenced in with their own climbing frame in the gardens. The playground 300 meters away, where they could play together, stays empty.
It’s a bit exaggerated, I know.
If something serious needs modernizing for us, then the house will be sold and an apartment rented!

There are also certainly people who reject this support of their own accord because they do not want anything given to them for free.

I hadn't mentioned it, but they get it back, bit by bit, as I can afford it. It is not a gift, that is the agreement.

Hi Bookstar,

I arrive at this value because I base it on the perceived average salary and the average equity of potential homebuyers and then call these "normal circumstances."

It's just a feeling. In many federal states, 300k euros is only the starting point. Sure, then you can only buy an apartment; a single-family house is a luxury not everyone can afford.

In our building area, however, there are few homebuilders who haven't received a nice six-figure sum as a subsidy from home. Good for them, but I only say this because I have created a lot for myself and can still go on vacation despite high debts.