ᐅ Is the Energy Saving Regulation from 2021 making new construction unaffordable?
Created on: 11 Jan 2019 12:32
T
Theodorius
Hello!
My banker told me that I shouldn’t wait much longer with my new build because starting in 2021, regulations will change so drastically that new constructions will cost 20-25% more than they do today.
Assuming I could afford it – wouldn’t it be clever from a speculative point of view to build a multi-family house BEFORE 2021 and consider it a retirement investment?
My banker used the term “concrete gold.”
My banker told me that I shouldn’t wait much longer with my new build because starting in 2021, regulations will change so drastically that new constructions will cost 20-25% more than they do today.
Assuming I could afford it – wouldn’t it be clever from a speculative point of view to build a multi-family house BEFORE 2021 and consider it a retirement investment?
My banker used the term “concrete gold.”
Building is no longer affordable for most people nowadays. A typical single-family home here costs nearly one million euros. Fifteen years ago, it was half that price.
No one has a crystal ball to predict where this will lead. But at some point, housing is needed, and usually, you cannot wait even 10 years in hopes that it will become cheaper.
In fact, substantial tax cuts would be necessary, and wages should increase significantly—by more than 10%. However, our government prefers to send money abroad or give it to criminal organizations.
Meanwhile, we are destroying the last key German industries and paying off European debts. When everyone becomes unemployed, there will be many inexpensive houses on the market.
Chapeau!
No one has a crystal ball to predict where this will lead. But at some point, housing is needed, and usually, you cannot wait even 10 years in hopes that it will become cheaper.
In fact, substantial tax cuts would be necessary, and wages should increase significantly—by more than 10%. However, our government prefers to send money abroad or give it to criminal organizations.
Meanwhile, we are destroying the last key German industries and paying off European debts. When everyone becomes unemployed, there will be many inexpensive houses on the market.
Chapeau!
Bookstar schrieb:
Building has become unaffordable for most people now. A typical single-family house here costs nearly one million euros. Fifteen years ago, it was half that.
No one has a crystal ball to know where this will end up. But you need housing at some point and usually can’t wait 10 years hoping prices will drop.
Ideally, there should be substantial tax cuts and wages should increase by more than 10%. But our government prefers to send money abroad or give it to criminal organizations.
Meanwhile, we are destroying the last key German industries and paying European debts. When everyone is unemployed, there will be plenty of cheap houses on the market.
Chapeau!That sounds like quite a lot of misinformation. If you are referring to loans for countries like Greece, Germany has actually benefited from them as well. With the currently low interest rates, Germany (by the way Europe’s leading country in this regard) has saved approximately 370 billion euros since 2007 compared to earlier interest levels. (This doesn’t even include loans to citizens and companies.) There is no question that construction costs have risen significantly—I too am often shocked by that trend. However, if you look at other European countries, either their economies are much weaker than ours, or there are cities/regions that have seen a similar price trend. Just look at London—it surpasses Munich many times over.
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readytorumble12 Jan 2019 07:23Seems to fit here somehow:
I just read in our local newspaper the forecast from the German Institute for Economic Research – a 4.5% increase in 2019 and another 3.5% in 2020 is predicted.
A newer/stricter energy saving regulation would of course drive things up again, but definitely not to the extent the bank advisor claims. Given the nonsense he’s talking, I would quickly look for a new one.
I just read in our local newspaper the forecast from the German Institute for Economic Research – a 4.5% increase in 2019 and another 3.5% in 2020 is predicted.
A newer/stricter energy saving regulation would of course drive things up again, but definitely not to the extent the bank advisor claims. Given the nonsense he’s talking, I would quickly look for a new one.
C
chand198612 Jan 2019 07:42Putting aside the fact that a bit of wage increase (which would obviously be important) also raises construction costs further. The workers there need to be paid as well.
Be that as it may: Since the German governments have been actively damaging the euro since Schröder (out of ignorance, not deliberately), a scenario described by Bookstar could happen. Several jobs might be lost if the euro collapses. Then, how would the home loans be paid off...
Be that as it may: Since the German governments have been actively damaging the euro since Schröder (out of ignorance, not deliberately), a scenario described by Bookstar could happen. Several jobs might be lost if the euro collapses. Then, how would the home loans be paid off...