Over-indebted despite real estate worth 1.2 million: How the S. couple got into a debt spiral

Over-indebted despite real estate worth 1.2 million: How the S. couple got into a debt spiral

According to a report from www.sueddeutsche.de, the S. couple got into debt on two properties worth 1.2 million euros. This is because hardly anyone wants to buy a property at the moment, which is driving a growing number of people in the district into a debt spiral.

Such a situation on the real estate market can have various effects. On the one hand, the prices for real estate in the district could continue to fall due to the low interest in buying. This would mean that people who have already invested in real estate, such as the S. couple, would be faced with a loss in the value of their real estate. On the other hand, the growing number of debts and forced sales could lead to an increased supply of real estate, which could also lead to a further fall in prices.

As the article reports, Erika S. and her husband Peter originally planned to sell their old apartment on the outskirts of Munich and finance a new apartment in the Ebersberg district. The old apartment had already been paid off and the move became necessary because Erika was seriously ill and had to move to a new place on the ground floor with a garden area. This situation illustrates how unexpected turns in the real estate market can have a major impact on people's lives.

At a time when buyers are hesitant to purchase properties, declining prices and increased debt burdens can cause serious problems. It is therefore important to monitor how the situation on the real estate market develops and what measures are taken to attract potential buyers again.