Hello everyone,
I don’t have a specific question but rather hope to spark a discussion and gather different opinions about homebuilding in the future...
Personally, I am planning to build a prefabricated single-family house in the Hannover region in about 2-5 years. Until then, I will save up equity and hope that affordable plots of land—or any plots at all—will become available. At the moment, the options in the areas I’m looking at are quite limited.
I have a flexible timeline for building, meaning I don’t urgently need a house in the next few years. But if the conditions are favorable, I would take advantage of that because I want to have a house for my older age anyway. Having children with my partner is not expected until 5-8 years from now.
I assume that building has also become significantly more expensive due to the huge price increases in recent years. Various statistics indicate cost increases of 2-4% per year.
After the current construction boom—which will likely continue for some time—can we expect more affordable prices again or bigger discounts when contractors’ schedules are less full?
Is building perhaps already cheaper than buying a young existing single-family house?
If interest rates rise in the coming years, what would be the consequences?
I’d appreciate hearing some opinions on this topic, especially whether it would be wise to wait before starting construction, as long as the situation allows.
Best regards
I don’t have a specific question but rather hope to spark a discussion and gather different opinions about homebuilding in the future...
Personally, I am planning to build a prefabricated single-family house in the Hannover region in about 2-5 years. Until then, I will save up equity and hope that affordable plots of land—or any plots at all—will become available. At the moment, the options in the areas I’m looking at are quite limited.
I have a flexible timeline for building, meaning I don’t urgently need a house in the next few years. But if the conditions are favorable, I would take advantage of that because I want to have a house for my older age anyway. Having children with my partner is not expected until 5-8 years from now.
I assume that building has also become significantly more expensive due to the huge price increases in recent years. Various statistics indicate cost increases of 2-4% per year.
After the current construction boom—which will likely continue for some time—can we expect more affordable prices again or bigger discounts when contractors’ schedules are less full?
Is building perhaps already cheaper than buying a young existing single-family house?
If interest rates rise in the coming years, what would be the consequences?
I’d appreciate hearing some opinions on this topic, especially whether it would be wise to wait before starting construction, as long as the situation allows.
Best regards
Regarding new construction, I wouldn’t expect prices to get any lower—why would plots that are not in undesirable locations become cheaper? In a few years, the next energy-saving regulation will come into effect, setting even higher standards, which won’t exactly drive new build prices down.
What could happen, however, is that some people might face problems if they took out loans with low fixed interest rates and rates rise again, especially if they calculated things very tightly. No one wishes that, but it’s likely to occur. I don’t think interest rates will suddenly jump back to 5 percent, but a slight increase from this very low level is certainly possible.
[Glaskugel aus, Herd an]
What could happen, however, is that some people might face problems if they took out loans with low fixed interest rates and rates rise again, especially if they calculated things very tightly. No one wishes that, but it’s likely to occur. I don’t think interest rates will suddenly jump back to 5 percent, but a slight increase from this very low level is certainly possible.
[Glaskugel aus, Herd an]
H
HilfeHilfe26 Jan 2018 19:54Save up equity, possibly in a building savings contract (though I’m not a fan of those). If you’re not under pressure, wait and see what time brings—especially as fixed interest periods end amid rising rates. How is your job situation? Secure? Flexible enough to relocate? Maybe buying a condominium (owner-occupied apartment) could be worthwhile.