A purchase can still be worthwhile

Interest rates are still low, credit conditions are favorable for real estate buyers. However, more and more experts are warning of an overheating of property prices - especially in the big cities. What to consider at the time of purchase.

View of the Schönhauser Allee in Berlin-Prenzlauer Berg

In only one year the prices for condominiums rose nationwide by seven percent. And in major cities such as Berlin or Munich, by the end of 2016, an even eleven percent increase was made by the end of the year. These are average values, in many places the price increases are still significantly higher. After all, a trend continued over the past year, says Jörg Sahr, real estate expert of Stiftung Warentest:

"Where you have already had to pay a lot for houses and apartments, prices have also risen significantly more than now in regions that are rather poor in structure or rural, where prices have already been relatively low Within individual cities, prices have risen the most - particularly in real estate in very good locations - the least in simple locations. "

Trend reversal not foreseeable

A trend trend on the price market is therefore not yet apparent. The Deutsche Bundesbank, for example, warns that house and apartment prices, especially in the cities, are already up to 30% above a justified level in 2016.

The Stiftung Warentest recommends taking a look also at the second row, beyond the often overpriced and coveted locations. Market reports and price mirrors, for example broker associations, are the first orientation. The decisive factor was the purchase price-lease ratio, says Jörg Sahr. This can be quite easily overcome.

"There is a share of the annual rent-net rent, which can be obtained from renting a comparable apartment, but today, at low interest rates, 25 times the annual rent is still acceptable, but there are already many large and university towns, Since buyers are already partially more than 30 times, and this can only be expected in the future with high rental and price increases in the future, which are just uncertain. "

The more equity, the better

Those who want to buy should use capital that is not needed in the next 15 to 20 years. In principle, the more equity available for financing, the better:

"The fist formula is: In any case, all ancillary costs - that is, basic income tax, possibly costs for a real estate agent, land register and also emergency costs More than 20 per cent of the purchase price as equity, but there are already in the big cities already sums that make 100,000 euros or more. "

Cheap interest rates over the long term

The interest rate trend is crucial for the future. If things go up at all, this could slow down demand and push prices down. For the financing of a real estate loan, it is above all important to secure the current interest rate for a long time, says Warentester Jörg Sahr:

"In any case, you should avoid a high interest rate risk, which is best achieved by setting the interest rate, the current interest rate, in the long term, rather for 15 or 20 years than for 10 years That a reasonable amortization is also implemented in order to minimize the risk of interest rate hikes at the end of the first rate fixation period. "

Conclusion: Even if extreme price increases in many places make a property purchase more expensive or even impossible, as long as interest rates remain low, there are chances that a real estate purchase can be expected in the long term.