Find your dream property now - despite or because of the market turnaround?

Inflation and rising interest rates are unsettling many people looking for real estate. They are wondering whether they can still afford a house or apartment now. However, real estate experts say that the general conditions for buying a property have changed. Nevertheless, buying a property is now possible if you keep a few things in mind.

Basically, it must be said that the real estate markets are not uniform throughout Germany. On the one hand, there are cities such as Munich and Frankfurt where prices are still very high. On the other hand, there are also regions where real estate is significantly cheaper. However, as the markets are constantly changing, it is advisable to contact a quality local estate agent to find out where prices are currently affordable.

Supply and demand are converging

Real estate experts are also seeing a decline in demand for real estate. It has therefore become somewhat easier to obtain a property again. The decline in demand is also having an impact on prices. In some regions of Germany, price increases have slowed down, in some they have even stopped. In the meantime, buyers can even negotiate the price with the seller again, say financing experts.

How does real estate financing work?

Thorough planning is the be-all and end-all of real estate financing. Seek advice from an experienced real estate professional. In addition to the price of the property, ancillary purchase costs such as notary fees and land transfer tax as well as the costs of any modernization should also be included in the calculation.

Sufficient equity

Sufficient equity is very important. As banks do not finance ancillary purchase costs, they must be financed from equity. Real estate experts recommend that 20 percent of the purchase price plus the ancillary purchase costs are covered by equity.

Longer financing term

Even though interest rates have risen, they are still relatively low. Inflation could lead to interest rates being raised further. In the current situation, financing experts therefore recommend longer terms, with fixed interest rates of 15 or better 20 years. Stretching out the financing can also be an option to reduce the monthly burden.

Purchase with expert

In any case, it is advisable to consult a real estate expert. They will help you find a suitable property and know who can advise you on affordable financing.

Would you like support in finding your dream property? Get in touch with us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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