ᐅ Is Buying a House a Wise Decision in the Current Market Situation?

Alibert87 schrieb:

We have a plan like that: we decided that when our first child starts school (with desk and so on), the house or something similar should be ready. We still have about 1.5 years, but the plan is starting to falter a bit due to the ongoing situation (market developments and prices).
Of course, we are definitely not sure! I admire people who say there’s no alternative—they want to buy a house and just do it (even if it means making many compromises).
Yes, this is a luxury problem. But I still want to solve it. I can’t fully decide to stop looking for properties either.

I would bet that you won’t be living in your own home in 1.5 years—unless you significantly change your requirements. Even if you find something tomorrow, it usually takes many months until you can move in (we sold our place and the buyers moved in 14 months later).

How are you searching? Maybe that’s a starting point: personal initiative, hiring real estate agents, agent networks, classifieds, looking for “available” plots on Google, etc.? (perhaps you could share where exactly and what your expectations are).

face26 schrieb:

I’ve only followed the thread sporadically... the last two pages sound a bit like you’re just looking for someone to say:

"I understand, I wouldn’t give up on my expectations either, keep going, you’ll find something that perfectly matches what you’re looking for."

That’s really not meant to be harsh, but the reality probably looks more like this:

"Your demands regarding the location are so high that it’s already difficult to find anything. 1.5 years is unfortunately not much time. Because from finding to processing to renovating, etc., more time will pass. The chances of finding something in the remaining time are getting smaller. So if it’s about planning, I’d say you can hope to get lucky, but if you plan, either accept compromises regarding location or plan to not buy a house."

Thanks for your honest words, but no, I don’t need to be told what I want to hear. We know it’s difficult, otherwise I wouldn’t be participating in this exchange. Not buying is also an option. And sure, 1.5 years goes by fast.

Alibert87 schrieb:

Yes, this is a luxury problem here as well. But I still want to solve it. I also can’t completely decide to just stop looking for a property.

In my opinion, it also matters how well you and your family can handle stressful situations. Some people manage stress very well, while others do not.

Pinkiponk schrieb:

In my opinion, it also depends on how well you and your family can handle stressful situations. Some people manage stress very well, others not so much.

That’s a very valid point, which my wife and I have already discussed. It requires energy, time, and patience. As they say, we are very proactive in our search (waiting for a real estate agent or a public listing doesn’t make any sense).

I can definitely understand those thoughts. It’s really a matter of weighing whether your criteria could be eased in some areas (for example, expanding the range of “preferred locations”) or if it’s simply okay for the process to take longer, or even for nothing to come out of it. (And your position on this can also change over time...) Of course, if you ultimately decide not to build at all, you could have invested the money elsewhere. But I suspect you won’t become any worse off, even if you miss out on some price increases. 😉

rick2018 schrieb:

By now, you should have found something already. It will never be perfect.
Prices are now about 30-40% higher. You should have accepted this increase earlier.
Back then, the amount was already surreal. Your equity should be higher now.
In prime locations, only top incomes will get you in.
It won’t get any cheaper anytime soon. There are plenty of current threads discussing this.

If I remember correctly, the original poster was searching in a smaller city in Lower Saxony. And as is almost everywhere today, ALL locations are considered prime locations by agents, sellers, and developers. Differences are marginal, except perhaps in the truly top areas of the region. The same applies in the surrounding area. Finding something during that period simply wasn’t realistic, especially since he wasn’t searching alone, and in 2020 the pool of potential buyers for regular houses was still significantly larger than today. When you do find something great, you need some luck too. There are always 3-10 people with you in the final round.

No one really knows where things are headed. Maybe the situation will look completely different tomorrow if the money flow slows down. Right now, we have interest rates similar to 2015, or actually closer to 2014. Household incomes will come under significant pressure, and whether governments can continue being as generous as before considering a transformative challenge of 10-15 years that now has to be tackled in 2-3 years is uncertain.

In the existing housing stock, only very new houses remain interesting. Renovations are okay, but extensive refurbishments or conversions to bring standard subdivision houses up to 2022 standards are hardly worth it and carry risks similar to new builds. Whether municipalities will be able to open new building zones as planned is another question. Properties are listing for much longer on the portals, some agents are still testing price increases, but often, especially with renovation properties, it takes months, and prices decline during this time. Suddenly, you lose €60,000 just like that.

Overall, the best advice remains to keep looking for opportunities and not get caught up in fear of missing out (FOMO). If you absolutely need a house at any cost, you might have to move out to a rural area. If you want to stay local and don’t want that, you have to keep waiting and searching. Times change. Within the next 2-3 years, many of the mortgages from the start of the boom will be 10 years old. It will then become clear where interest rates, prices, and incomes stand.