In my daily work I often have to deal with a question, should I buy a property now or wait? Interest rates make all the difference when it comes to the cost of real estate financing. No matter if it is the small home that you build for yourself and your family or the property as an investment, whether in A, B or C location, the higher the interest rates the higher the costs – in both cases unfavorable!
That is why I have built the interest guru! A simple, easy to understand place to go for all those who are buying their first property and are waiting for the right time to do so.
Future property owners often save years to get the equity together for their first property. No matter whether it is a small monthly contribution, so to speak a private real estate savings plan or also the building savings contract, which in particular those gladly use, which want to build themselves a house. Years are waited and then, suddenly the interest rises! A really unfavorable situation. Buy now or rather wait? You can now answer this question 24 hours, 7 days a week, 365 days a year with the interest guru.
Positive cash flow or negative cash flow, interest rates have a direct impact on a property’s return. Every percent increase in interest automatically means an increase in cost to you. Take a look at how the differences compare here!
Here’s a simple breakdown, with interest rates staying the same (entire term, simplified).
1% interest = 46,946.51 €
2% interest = 120,033.13 €
3% interest = 164,983.93 €
4% interest = 204,194.50 €
5% interest = 239,319.28 €
6% interest = 271,106.54 €