Why is it so expensive to build a house
Building is currently more expensive and cheaper than ever! - Price upswing is expected
The price madness continues! If people with the dream of owning their own home had hoped at the beginning of the Corona crisis that real estate prices would also fall, they will now be bitterly disappointed. Various reports show that prices continue to climb immeasurably. Find out here why building has never been so expensive, but also so cheap at the same time!
It seems as if nothing and nobody is immune to the corona virus at the moment - except for the real estate market! If at the beginning of the pandemic one forecast a decline in inquiries and the associated falling prices (regardless of whether they are renting or buying) and lower construction costs, at this point it is more likely that it will be more rather than less. However, more inquiries and more sales transactions also generate an increase in costs. The current weekly report by the German Institute for Economic Research (DIW Berlin) confirms the price growth.
Building will continue to be more and more expensive in the future
The price upswing in the real estate industry is now in its 10th year and has meanwhile reached almost all regions of Germany. In the next 10 years, experts expect a renewed increase in value in more than half of the 401 German cities and districts. The area around Munich will be hardest hit, but an increase of 1.7% is also expected in Munich itself - and that although property is hardly affordable for normal earners there!
Outside of the Bavarian districts, the city of Cloppenburg is also gaining 2%. In the major cities of Heilbronn, Potsdam, Leipzig, Dresden and Ingolstadt there will be an annual price increase of 1%. Only the rural regions of the east seem unpopular. Here prices stand still or even decline.
This development will not please people with a desire to own a home. Nevertheless, Claus Michelsen from DIW Berlin has something positive to say about it all: “If the economic crisis were to spill over to the real estate sector and real estate loans then failed to a large extent, this could put many banks in additional difficulties. The last thing politics, business and taxpayers need now are failing banks and collapsing real estate markets. "
The banks make building cheap
So it is not surprising that the high demand is fueled primarily by the banks. These are making a home for those who want to build or buy their own home cheaper than ever before - despite high real estate prices! How? With interest that is almost reminiscent of a free loan. According to Interhyp reports, these slipped below the 0.5% mark at the beginning of September. According to BILD.de, you can get a loan with a 10-year fixed interest rate and a very good credit rating for as little as 0.4% interest.
However, anyone who speculates with negative interest rates and hopes to soon have to repay less of the loan they have taken out will be disappointed, according to Interhyp. The broker of private mortgage lending considers this to be extremely unlikely in the future as well.
When is the best time to build?
House sellers from construction companies recommend that those willing to build should not wait too long to fulfill their wish to build a house. “We cannot look into the future and say with certainty whether this price trend will really materialize. However, it suggests quite a bit. We therefore advise our interested parties: Build now and secure the low interest rates from the banks! ”, Summarizes Jürgen Dawo, founder of Town & Country Haus.
- What are the exercises during pregnancy
- Would make an owl a lovely pet
- Hate your boss
- What is the brutal truth about engineers
- AWS cloud computing has a future
- How do prisoners get drugs or money?
- Where is this Buddha statue located
- Which is the cheapest city in Canada
- Can Muslims eat pork
- What is Gender Discrimination in India
- Is the US dollar overvalued?
- Many Japanese still use futons
- What does the name SRAVAN mean
- Is Belize Safe To Visit?
- How do I hire nannies in Ludhiana
- Are US judges more powerful than Trump
- What do Hogwarts students do on the weekend
- What is the dirtiest business area in Thailand
- When is it okay to have a cold?
- Why do people pretend love in relationships
- What is the first meal that man cooked
- Is Kobe Japan worth visiting
- Why is deforestation a thing
- Have you ever stapled your hands