LeChamois

What if you are forced to sell? People like to ignore that risk. You could lose your income, or even your ability to work. You might want to move for whatever reason. When a couple buys jointly there is a real risk that one of the two could die. There is also the possibility of higher property taxes - I don't think that is likely in Germany but that does not make it impossible. You are absolutely right, as long as money is available at 1% most people can afford to buy a €1.000.000 house - as long as nothing goes wrong or even changes.

That's what Marie Antoinette might have said, "why don't they have large balconies?" I am glad to see that you don't have to worry about such mundane problems but a typical new arrival in Munich is desperate to find just anything where he can sleep and keep his clothes. The unemployed you predict to come from Southern Europe will be looking for the cheapest or smallest places they can find so that sector in the market will once again see the greatest increase in demand just like after the financial crisis or after the influx of refugees.

  The biggest threat to your well-being is not the CPI but a monotonous diet.

A friend of mine bought a house in the South of England in 1995. That's an investment that takes some beating. His comment was, "of course I didn't know, had I known I would have bought ten". If you know that prices won't drop then why are you wasting your time telling us about it? I know what I'd be doing.

There is even a word for it the UK https://en.wikipedia.org/wiki/Gazumping