Will construction interest rates soon reach the unimaginable?

  • Erstellt am 2025-03-15 14:33:01

Araknis

2025-03-16 09:19:02
  • #1
I somehow can't stand these "back then the interest rates were much higher, don't be so whining" statements anymore. "You" also built houses back then at 9% interest that in total cost about as much as maybe just the shell of a building costs today.
 

wiltshire

2025-03-16 09:48:27
  • #2
If you read "stop whining" in it, it's clear that it annoys you. But you simply cannot relate the facts to yourself. The current level of construction interest rates is historically very low. At the same time, it is significantly higher than it was 3-5 years ago. Construction prices have risen enormously during the extreme low-interest phase along with demand. Margins were somewhat delayedly cannibalized by more expensive building materials, raised construction requirements, and disproportionate wage developments in the construction sector. Therefore, prices cannot go down again now. The current interest rate of 3.x% is to be classified as "cheap." Your title asks about an increase to the "immeasurable." What would be "immeasurable"?
 

ypg

2025-03-16 10:41:44
  • #3
See, "we" feel similarly when we read about the "dramatic increase." And no, "we" are not that old that "we" didn't have to build energetically. So the money was only enough for 115 used sqm - without a children's bathroom, pantry, and panoramic lift-and-slide door.
 

nordanney

2025-03-16 11:46:59
  • #4
"We" only earned €1,500 net per month back then. Please don't forget. Houses are not really more expensive today than back then (relatively speaking).
 

Arauki11

2025-03-16 11:58:03
  • #5
You simply add the snappy remark "don’t complain so much" yourself, for whatever reason. Nobody here said that. Every era is the way it is and has its pros and cons, but that is well known, I think. The thing about the shell is nonsense, I can’t describe it any other way, just like the obvious view that "everything was cheaper and easier back then." I understand (as I wrote) that people don’t like rising interest rates lately or that it prevents them from one thing or another, but it was never different. To better calibrate one’s feeling of living in a bad time, sometimes it helps to look at the whole picture or the context, and that shows among other things that interest rates are historically low. Back then, we could only build together with the parents, but that also required an effort on our part, namely caring for the parents in old age, which brings significant limitations. I know several such cases from my environment; in our current new residential area here, there isn’t a single one [house built with parental help], here only families with their own children live alone in single-family houses. I don’t even want to judge that, but it does say something, and following your logic, I would now have to say: "How can these young people with "worse" jobs than we had back then build a single-family house today, and we couldn’t back then?" But I don’t think that way, nor do I want to, because that would be pointless and would at most put me in a bad mood on this nice, sunny day today.
 

MachsSelbst

2025-03-16 17:11:26
  • #6
The fact is, however, that currently moderate interest rates meet high prices. But the truth also includes that today every average Joe expects a standard that in the 60s was at best affordable for the department head, if at all. Many things are coming together. Why the interest rates should explode, however... that was already said 3 years ago, I remember forecasts of 6, 7, 8% by the end of 2024...
 

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