Being afraid of losing their jobs is the main reason for Germans not buying real estate. 53.8% of those questioned said so in a study conducted in 2007 by HypothekenDiscount. The fear of accumulating too many debts was mentioned by 46.6% of people in this context and constitutes the second most important reason for which people shy away from buying real estate. 35.7% do not buy their own houses because they consider it possible to have to move due to job changes.
Further reasons are being afraid of divorce, being too old or responsibility for children. Banks have already reacted to the concerns of potential debtors. In the meantime special kinds of loans were introduced which enable debtors to match their real estate financing with the realities of their daily lives such as fixed rate loans or combined credits which lead to more flexible debt servicing. In addition there are certain types of insurances which in the case of unemployment will ensure debt re-payment. Also possible are insurance models which guarantee a payment of up to ten percent of the real estate purchase price in the case of a bail-out, if the sale became necessary due to divorce or moving for professional reasons.
The study in figures
»What would prevent you from taking out a loan and purchasing your own house?«
1. Being afraid of losing my job: 53.8%
2. Strong financial burden due to debt servicing: 46.6%
3. Possibility of having to move due to job change: 35.7%
4. Falling living standard: 22.4%
5. Being afraid of divorce: 12.8%
6. Being too old for a morgage loan: 9.8%
7. Responsibility for children: 7.0%