Why buying a property remains attractive despite rising interest rates - an interview with a financial expert

Why buying a property remains attractive despite rising interest rates - an interview with a financial expert

According to a report by www.nrz.de, Sigrid Bisschop spoke to Marvin Franzen about the real estate market and construction financing. Franzen is of the opinion that despite rising interest rates, cheaper properties cannot be expected.

Buying or building a house often requires high costs that most people cannot afford out of their own pockets. That’s why many people resort to real estate financing. Marvin Franzen emphasizes that despite rising interest rates, there are still many reasons for purchasing a property, such as retirement provision, independence and improving quality of life. Franzen points out that rising rental prices and projected immigration will increase pressure on the rental housing market.

Although financing has become more demanding, we are still at historically low interest rates. The differences in the interest conditions and repayment rates of the banks can lead to significant differences in the loan installments. Franzen recommends comparing offers carefully or consulting an independent agent.

Franzen warns against speculating on falling purchase prices, as there has been no general decrease in sales prices so far. Demand for real estate remains high and increased construction costs have reduced supply. Due to current inflation, it is likely that interest rates will continue to rise. Franzen therefore advises against postponing a property purchase.