Because of cheap real estate loans, property buyers have had particularly favourable conditions when buying a house, since the beginning of the year. Unlike other investment models, such as funds, real estate is currently not experiencing any loss in value. Properties are therefore an opportunity for investors who need or want to withdraw their capital from shares. In addition, the corona crisis has led to a high demand of particularly secure federal bonds, which are also used to set interest rates on building loans. Now that the American Fed has also cut its key interest rate significantly, the interest rate level is particularly low in all influential capital markets. Financial experts therefore point out that property buyers can currently get particularly cheap loans for the purchase of residential property. Even negative building rates could be achieved in individual cases. Prospective buyers should therefore keep their eyes open and take advantage of the current cheap offers.
Real estate prices remain at their level
In addition, home buyers do not have to fear that real estate prices will suddenly increase. Andreas Schulten, General Representative of the independent market research company bulwiengesa, recently announced in the German media: “Prices will hardly move in the coming months. The price development is suspended. ”But that also means that the value of real estate will not decrease, neither in the short nor the long term.” In large cities, the upward trend in residential property has slowed down before the scale and impact of the corona virus has had effected the global economy. “This trend will now spread across Germany,” Schulten analyses. “In the residential property sector in particular, things will be very quiet for a while,” predicts bulwiengesa’s Represantative, “but then things will continue at the same level as before the crisis.” Consumers who have been thinking about buying property for a long time, should consider to take advantage of the current situation.
Corona: Cheap building loans make real estate attractive
Home finance providers confirm that they can offer very cheap loans because of corona. “The uncertainty caused by the corona virus has led to an all-time low in building rates,” says Mirjam Mohr, Head of Private Customer Business at Interhyp. According to the financing intermediary, loans with ten-year fixed interest rates could currently be granted for 0.6 percent. With a particularly good credit rating, even 0.4 percent is possible. Using the offers of over 400 banks, Interhyp regularly analyses the conditions for borrowers. The latest results show that the loan conditions improved again by 0.1 percent compared to the previous month. Even longer-term loans with a 15-year commitment are currently available for an interest rate below one percent.
The finance provider Dr. Klein even beats Interhyp’s price information. Dr. Klein states that some regional banks would already grant ten-year construction loans with an interest rate of 0.31 percent. This is even below the “realistic lower limit”, which finance provider Hüttig & Rompf sees at around 0.35 percent. For 15-year loans, the conditions would at best be around 0.5 percent. According to the finance provider, negative interest rates are not likely.
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