WilderSueden
2022-06-07 21:31:24
- #1
Well, on the one hand because prices have risen somewhat extremely fast in recent years (partly fueled by even lower interest rates than before). And on the other hand because the previous purchase prices at current and probably future interest rates thin out the field quite a bit. However, for a return to 1% repayment, interest rates are still significantly too low at present and the terms correspondingly long. And yes, the rental market is not exactly fun either, but money for interest is just as gone as money to the landlord. And with 400k debt capital and 3% interest, you end up paying a measly thousand a month in interest. For many, due to higher prices, it's actually significantly more. Then you add maintenance, and a rental apartment for 1500€ cold rent is no worse for wealth building than a condominium for 500-600k. Ultimately, though, it is not so much the individual decision anyway; many will simply have the plug pulled by the bank because the necessary creditworthiness for an annuity of 5% upwards at the current prices is no longer given. Fewer potential buyers, lower prices. And sure, that is hard to predict, but the tendency is quite clear. Betting now with leverage on a quick increase in value is definitely not exactly risk-free.hmm, why does everyone now expect that we will have 20% lower prices in real estate in 2-3 years?