Financing? Ask a professional now!
Ingo, how do you assess the real estate market in Meinerzhagen and Kierspe in terms of financing?
For those who have to finance a large portion of their property, the financial leeway has narrowed because the cost of borrowing has more than doubled. Banks are taking the increased energy costs into account in their financing. For prospective buyers with low household incomes, buying real estate is now virtually unaffordable.
How do you assess the real estate market in the region?
Sellers will certainly find it difficult to maintain the high real estate prices of the past.
What are the banks' general conditions?
All in all, the banks are doing a solid job. When it comes to financing, they not only look at monthly household income, but also factor in the sharp rise in household expenses due to inflation and skyrocketing energy costs. Many people simply cannot afford as much as they used to.
How are prospective buyers reacting to the rise in interest rates?
From April to September of this year, we noticed a clear reluctance and hesitancy. Since October, there has been a trend reversal. Prospective buyers are increasingly getting used to the higher interest rates. And let's be honest: interest rates are still at an affordable level. We are talking about 3–4% over 10 years.
What is your forecast?
I expect business to be brisk at the end of the year. Many prospective buyers who were still hesitant in the first quarters are now increasingly making their purchase decisions toward the end of the year.
What financial advice can you give to prospective buyers?
Anyone who buys a property or plot of land this year can have 2% of the real estate transfer tax refunded by the state of North Rhine-Westphaliaand many building societies are still offering attractive rates until the end of January 2023, allowing you to secure low interest rates for future real estate plans or follow-up financing in the long term.
Thank you very much, Ingo, for talking to us.
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