The ECB will still have to raise interest rates a few more times and then keep the key interest rates steady for several years to curb inflation. This is good for savers who finally receive interest again. It is bad for people living in houses they could never really afford but only because of the abnormally low interest rates. I think it's good. It lets the air out of the completely overheated real estate market and not everyone needs to live in their own house without their own effort.
What you can assume, however, is that the financing world will not really get better in the next two years - rather even more expensive than now.
Interesting will be (young) existing properties, whose price discounts can partly already compensate for the interest rate increase (due to lower repayment requirements through the compound interest effect).
We have just reduced the minimum repayment to 1% even with higher maturities on our side.
Where do you see the driver for further increases in financing interest rates? I would have rather expected a plateau, as is already the case in the USA - the inflation is already coming back more there.
Price discounts on older stock are definitely seen in the market & stronger; only energetically high-quality quasi-new builds are currently extremely rare; there was more of that in my market observation over the last 24 months.
1. The average equity contribution has increased by over 50% since the beginning of the interest rate rise and is now over 30% of the total investment costs. 2. Financing over 80% of the loan-to-value ratio is not per se a very bad financing. There are many reasons to take advantage of such financing. The best example is simply young people, often academics with well-paid jobs, who unfortunately have not yet had the opportunity to save enough equity. In such situations, the ability to service the debt is often better than with "good" financing with lower loan amounts. 3. By the way, with such pub talk, you always stand out here again. I won’t even address the rest of your babble about 8-9% interest rates, etc. I prefer to discuss things seriously here. P.S. Now it’s getting bitter? For whom? Those who have already built or bought have peace for the next 15-30 years because the fixed interest period does not expire until then. Those who want to build now also do not have a real problem. They can either do it because they have the creditworthiness or not. But the banking industry is already granting loans more restrictively again. And whether I manage a 40-year term with 2.5% repayment or 1% repayment doesn’t change anything either. Forty years is such a limit that is common in the industry. In this respect, we simply adjust our basic data to reality.
It is/will be bitter for the many people who can no longer build/buy due to higher prices and higher interest rates. They now have to deal with horrendous rents and non-existent housing and have to forego a lot of quality of life.
And yet you can still finance real estate. You just have to find a different perspective. High inflation is quite good for a loan because it does not increase, but the salary does.
High inflation is actually quite good for a loan, since the loan amount doesn't increase, but the salary does.
It just shouldn't be so tight that if it takes a while for the salary to catch up, you run into problems with your other living expenses. So, it was just reported in the press again that this is the third year in a row with real wage losses (meaning inflation is higher than wage increases). Therefore, wages do not automatically increase at the same rate. But if my installment is fixed, that still helps anyway. (= everything else becomes more expensive, but this no longer does. Wage increases only have to compensate for the rest)