This is how real estate owners reduce their monthly burden

2023-08-22 14:35:26

New buildings in Munich

Anyone who bought a house or apartment ten years ago now has to take care of follow-up financing.

(Photo: Mauritius Images)

Munich, Frankfurt How expensive will it be if I have to extend my loan but the interest rates are significantly higher? An awkward question, which is mainly asked by people who bought a property in 2014 and 2015 and – as is usual in this country – financed it with a loan with a ten-year fixed interest rate.

In 2014, the average interest rate for a real estate loan was 2.2 to 2.7 percent, a year later it was 1.3 to 1.7 percent. Today, borrowers sometimes pay more than double or triple.

Sebastian Eraghi, head of Germany at the Swiss broker Neho, expects that some owners will no longer be able to keep their property because of the significantly higher costs of follow-up financing. Max Herbst from FMH-Finanzberatung does not go that far, but he says: “What a number of owners will probably have to say goodbye to is the idea of ​​being debt-free until retirement.” So what should those affected do? The Handelsblatt did the math.

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Further

Read on now

Get access to this and every other article in the

web and in our app.

Further