How do the srising mortgage rates and inflation affect the real estate market?
In recent years, the low-interest phase has really boosted the real estate market. For many buyers is - apart from the price level - the financing over a real estate credit a crucial condition for the real estate acquisition. Since the beginning of the year, however, there has been a noticeable change in the financial market. In addition to the current inflation rate, the economic and political situation in the world are also triggers for the currently rising mortgage interest rates.
In particular, capital investors are therefore increasingly asking themselves the question: where can I still find worthwhile investment opportunities that withstand the continuing inflation?
It is no secret that real estate is excellently suited as a long-term investment and at the same time offers a high level of inflation protection - even in times of crisis. Above all capital investors, who deal with financial topics and want to invest their fortune surely, operate therefore inflation protection by real estate acquisition.
By the current interest increases with mortgage credits can be already observed first price stagnations at the real estate market. Compared with the market situation nine to twelve months ago, the current interest rate level results in a purely mathematical loss of purchasing power of approximately 20 percent to 30 percent. When setting realistic prices, owners should therefore bear in mind that the number of potential buyers will fall in the future due to rising mortgage rates, a lack of planning certainty, higher construction and renovation costs, and more cautious lending practices on the part of banks. Therefore prospective customers will look in the future also more critically on real estate offers. Nevertheless: The desire for own four walls remains. Buyers are rather ready to compromises and cutbacks, in order to be able to fulfill this desire still - also from fear of further rising interest rates, of an increasing demonetization as well as of with the inflation accompanying increases of the rent costs.
Are you on the search for a suitable real estate for the self-use or as investment? Or do you want to sell your own property? With Ariane and Andreas Gräfenstein, office managers at VON POLL IMMOBILIEN Berlin Treptow-Köpenick, you are in the best hands when it comes to real estate brokerage. On request, the affiliated VON POLL FINANCE team also offers optimal support in financing matters in conjunction with a best interest rate check from over 500 lenders.
You can reach the VON POLL IMMOBILIEN experts in Berlin - Treptow-Köpenick by calling 030 - 65 66 0 5000 or [email protected] or you can visit the store directly at Bölschestrasse 106-107 in 12587 Berlin Friedrichshagen.
