The price curve for houses and apartments in the country has recently only pointed in one direction: steeply, yes very steeply upwards. During the corona pandemic, many people felt the longing to escape the big city, which had lost its appeal during the lockdown. And interest rates were low. The result: “We saw some offers that were more than utopian and cheeky. But people paid for it because the low interest rate made it possible for them," says Julia Bentin, a broker from Lohbrügge. Matthias Conze confirms this impression. The managing partner of the Engel & Völkers agency in Bergedorf and Barmbek says: "We were partially daily during the marketing period." It usually takes three to six, maybe even nine months for a property to find a new owner. “There was also real estate on the market at the time that was simply too expensive at first. But then they just grew into the price over a few weeks or months," says Conze. Real estate is now tending to become cheaper again. At the same time, the supply is growing: The real estate market, which was out of balance during the Corona period, seems to be normalizing, and there is a more balanced relationship between supply and demand. And yet nothing is as it was before: increased interest rates on loans mean that the dream of owning a house is a long way off for many families. And anyone who has just concluded the contract at low interest rates has to ask themselves an anxious question: is the property purchased still affordable when the first fixed interest rate usually expires after ten years? Buying a house or apartment: is it still worth it?The rapid ups and downs on the real estate market within a very short time is the subject of "Point 11 – Hour of the Decision Makers", the 60-minute exchange of ideas at eleven in the morning in the editorial offices of the Bergedorfer Zeitung/Lauenburgische Landeszeitung. Julia Bentin and Matthias Conze are sitting at the table also Katrin Eggers, broker from Börnsen. First finding: things have calmed down among brokers. "Frighteningly quiet," says Katrin Eggers, "last year in the third quarter hardly any inquiries came in from one day to the next." This applies in particular to properties that have a "small snag" or where the situation is not 100% correct. Looking back at the past year, Matthias Conze draws a similar picture. He says: "We have lower demand overall, and for properties that we offer in terms of price that is too sporty, it tends towards zero."Buying a house or apartment: interested parties have become "more qualified". And yet there are still buyers. Matthias Conze reports that those who register now are "more qualified" again. That means: San Pedro Belize Real Estate "Prospective buyers are well informed about the increased interest rates and the overall increased burden. That was not the case last year." And: buyers and sellers met each other again on an equal footing. “Most of the time, the seller no longer has the choice of several buyers and can no longer lead the negotiation unilaterally. Just like it was before the pandemic and the strong price trends," says Conze. These potential buyers are encountering a sharp increase in supply, as Julia Bentin reports: "A lot is happening on the real estate market right now." Newsletter for Bergedorf and the surrounding area Order the free newsletter here: daily compact information. By subscribing to the newsletter, I agree to the advertising agreement.So buy now, despite higher interest rates? "It's always a good time to build up your assets with concrete gold," says Julia Bentin. "Concrete gold will not lose value, at least not drastically – unless I bought too expensively." Matthias Conze is convinced that it will never be possible to get in at the lowest point and sell again at the highest point. "If I can buy now – and those are the ones who have equity – then now is a good time," he says. "In ten years the house won't be worth less, I can't imagine that." Buying a house or apartment: Banks have become more cautious However, the banks are taking a closer look than in the past and – according to the unanimous observation of real estate experts – have become much, much more cautious. Julia Bentin has heard of sales contracts that fell through on the day of notarial certification because the bank withdrew the loan commitment. "The banks are now also looking very closely at whether you can still afford a property as a pensioner or whether you have paid for it by then," reports Matthias Conze. He considers this calculation to be too harsh: "Once the children move out, many no longer want to stay in the house live in a big house and are downsizing, or their financial situation has improved in 20 years. For a young family, unfortunately, the pension often doesn't look so rosy, but hopefully it will improve." Basically, the following applies: “Investing in property every month, repaying it, making the property chic and then looking at what you can do with it in 15 years – that also makes sense. Then the property will probably be worth more than it is now. In general, he advises buying in such a way that you don't overdo it, that there is money left for upcoming repairs and other things. Conze: "Our parents' generation bought a property and then vacation was canceled for five years. Nobody wants that anymore. The demands have become much higher." Conze recommends investing in home ownership from a very young age, ideally in your early 20s, even if it's just a one-bedroom apartment. "I think it's great when someone can do it," he says, "and then at some point they're in their mid-30s and have already built up a lot of equity. It's very easy for them to take the next step with a larger property." Condominium in Bergedorf is always a good choice But what type of property do the experts think is particularly in demand? "The condominiums in Bergedorf, whether old or new," says Julia Bentin. “It sells well even in times of crisis because there is a large target group. You can move in yourself or rent it out, the risk is manageable. It's always been like that." Matthias Conze considers the location to be crucial. "If something comes in in the villa district where everyone is looking, then that's fine too. Age-appropriate apartments with underground parking and elevators also work." Katrin Eggers also brings the new development area into play, which remains popular: Whether it's a semi-detached house or a single-family house in Escheburg or Börnsen, ten or 20 years old or brand new – the offer is there. Tip: Build the house in such a way that others would also like it According to the experts, if you build a house that will one day be sold on, make sure that you build it in such a way that others can also do something with it. One reason, by the way, why single-family houses from the 1950s and 1960s are "difficult" according to Katrin Eggers: "Because they are built according to today's standards and have too many small rooms." It seems clear: The one family house for life, which is eventually passed on to the children, is obviously not a very common model anymore. "There are now many who say: Now I have my children, now I would like to have a single-family house, and when the children have moved out, I'll sell it and go back to the city to rent anyway," says Julia Bentin. How much further will real estate prices fall? This explains why there is a large supply even when prices are falling. According to the observation of Engel & Völkers man Conze, these are not fire sales, but what he calls "natural reasons": inheritances, relocations, divorces. Nevertheless, if you want to sell now, you have to lower your expectations a bit. "It's bad to calculate with prices that we generated at the end of 2021," says Julia Bentin. Her recommendation: "Ultimately, many sellers should reconsider their position. That's very difficult for them. But if you calculate a property today close to its market value, then you also come in the right direction, then you also come to the sale." Matthias Conze warns: "If I price a property too expensive, I run the risk of ruining it on the market." Industry experts consider it unlikely that prices for living space will collapse completely. In their opinion, stricter requirements from the banks and increases in construction costs will mean that many new construction projects cannot be implemented. "Unfortunately, too little new living space will be created in the next few years," says Matthias Conze. "And will prices then fall?"Renting is a tricky subject that many shy away from According to the real estate experts, today's sellers also include heirs who have their own house or apartment. “Some people might sell out of fear that prices will fall even further. Or renovations are pending," says Katrin Eggers. "That may be the final impetus to say: I'll sell instead of renting out if I have a house that's vacant." Renting out is a tricky keyword, Julia Bentin is quite skeptical: "Do I rent out? In the situation that the law dictates to me? Am I really renting out a single-family house?" She had just taken over a property in which the tenant had "played silly". Damage: 30,000 euros. "It will never pay for itself again," says Bentin. In addition, there is the administration that many owners fear, such as preparing a correct utility bill. Last but not least, “the tenants’ association also pushes the tenants very high. Renting is a big risk!" CDU: Use empty urban real estate for refugees Op de Diek: Condominiums in demand despite slump in sales What will become of Geesthacht's oldest residential building? Speaking of risk: According to real estate experts, leasehold land is a huge problem. Hamburg no longer sells them and only extends the contracts shortly before the end of the 99-year term. "Unsaleable" for customers who have to finance more, Matthias Conze judges in the event that the remaining term is less than 20 to 25 years. "The city of Hamburg leaves the leaseholders very much alone and reduces their values to the maximum." "Point 11 – Hour of the decision-makers": This is the seriesAt "Point 11 – Hour of the decision-makers" in irregular succession – but always at eleven in the morning – experts from one industry come to our editorial offices at Chrysanderstraße 1 in Hamburg-Bergedorf to exchange views on important current topics. For the next episode this series we welcome representatives of the trade.
If you are you looking for more info in regards to San Pedro Belize Real Estate check out our web site.
