No, every era has or had its challenges. Knowing all the factors that make a sale easier and more secure is still helpful today.

Better buying opportunities: significantly more properties on the market
In many regions of Germany, real estate purchase prices have recently declined. This was due in part to significantly higher interest rates, but also to the uncertainty felt by many people as a result of the war in Ukraine, inflation, high energy costs, and a decline in economic activity.
The resulting reluctance to buy has led to significant price reductions on the one hand, but also to more choice on the other, as fewer properties have been sold and there is more supply than in recent years. Nevertheless, prices are still high compared to the typical financing options available to buyers. Nevertheless, there are still good opportunities for prospective buyers to find their dream property if they prepare well.
Good preparation is particularly important now
To do this, it is necessary to recognize where your own financing limits lie and the conditions under which banks are prepared to support the purchase. In principle, creditworthiness requirements have hardly changed. What is new is that renovation obligations or the replacement of energy sources are now factored in with discounts. The rule of thumb still applies: the purchase price should not exceed one third of the household's net income. Despite current interest rates of around 4%, financing is not impossible. Example: With a typical repayment rate of 2%, a couple with a net income of 5,000 euros and 100,000 euros in equity can easily finance a property with a purchase price of between 350,000 and 400,000 euros.
Locations have different purchase levels
However, how many square meters can be purchased depends heavily on the purchase price levels in different locations. In metropolitan areas such as Munich, Hamburg, and Berlin, apartments will be smaller than in small and medium-sized cities such as Weimar or Kassel. In the current market situation, prospective buyers should disclose their financing options to sellers, even if the purchase price is slightly above their own limits.
Quality brokers are able to mediate between the different price expectations of owners and buyers and find solutions. If you don't find the right property right away, it's worth placing a search request with a local real estate agent that includes your financing limits. This way, suitable offers can be passed on to you before they appear on real estate portals.
Rising rents, falling property prices
Those who have only been able to save a small amount of equity are not automatically out of luck. Buying a property can still be worthwhile, even if you can't afford as many square meters as last year. Unlike property prices, which are still falling, rents are set to rise sharply again in the coming months. This is the consensus among Germany's leading economists.
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Note
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as 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 case.
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