We also bought a property in the Hannover area two years ago. That was already during the "high level" period. Meaning: Since then, prices have remained the same but have not fallen by a single cent so far. It is a small town though. Currently, I don’t see prices regulating themselves as long as the economic situation in the region remains good. In my opinion, Hannover also started at a relatively low level 10 years ago. In Hannover itself, the prices for existing properties are still rising significantly and I don’t see an end to that yet. If we hadn’t necessarily wanted a house, it would definitely have been more economical to buy a condominium in a good urban location and then move "out to the countryside" in 10-15 years. Building a house was also an option, but the prices were simply too high because the order books are/were full. The land prices were actually okay, but the plots were terrible. Therefore, it might really be an option to wait for a new development if the land prices are acceptable then. However, when I look at the prices quoted in Seelze (northeast of Hannover, very close to Hannover, but a catastrophic microlocation because basically nothing is within walking distance), I have some doubts about that.
We too have considered your thought because:
- Low interest rates
- Prices are rising rapidly
Our disadvantage compared to you was that we were already in our mid or early 30s, so at some point the time for repayment runs out. In addition, we paid almost €800 cold rent, which of course did not cover the repayment, but nonetheless is capital that is lost monthly.
Therefore, we decided to buy because ultimately I don’t believe in a bubble burst within the next 10 years. Sure, some may have calculated so tightly that the follow-up financing will be tight, but I don’t believe in a dramatic rise in interest rates and since many financed a significant part via KFW, I don’t expect our government to just leave these people out in the cold. After all, that’s already verrrrry many and the offered contract model was/is also very stiff (only 10 years fixed interest, fixed repayment rates, etc.). The few properties that come onto the market in this way will surely find a buyer without problems.
The other consideration was: If houses that were calculated at the very edge really come onto the market cheaply, do we even want them? Do I want a 140m² house with 3 children’s rooms in minimal standard??? Sure, if you want to save you have to make compromises, but such “tight” financing rarely exists for the 200m² palace. That means I buy a presumably relatively small house tailored to the previous owners’ needs. They don’t have to match mine.
We now have 200m², with which we are very happy. If we had planned the house ourselves, the layout would surely have been different and we could have easily realized the same living comfort on 165-170m², but that’s how it is. On the other hand, it is not a standardized house of today (with 140m² there are not many options for customization) and we can gradually implement our ideas.