400k house estimated - became a 470k house / an experience report

One has to evaluate what is more economical. Leasing cars can be cheaper than buying with one's own money.

That has nothing to do with buying on credit.

But that is only true if I can/want to afford it either way. Often the arguments are mixed up. For example, I have €10,000 available and say: The car for €10,000 costs me only €9,000 leased, so I lease it. Then it has nothing to do with buying on credit. It looks different if I say: Leasing is cheaper, so I lease the €60,000 list price car, where actually only the €10,000 used car would be an option. Quite true to the advertising slogan: "The more I buy, the more I save."

The house... topic 400 or 470, does it not matter?. No. Houses, at least the first ones, are usually financed. It has always been that way and is also okay. When the financing is in proportion to the equity. I think: 20% equity, then a financing amount that I can manage in 15-20 years,- that would be healthy. Nearly 100% financing stretched over 30 years, no. Dangerous and restrictive. The older you are, the shorter you choose your F. Be debt-free by retirement/pension. Karsten

I find the leasing comparison inappropriate: with cars, it actually happens that manufacturers offer irresistible leasing conditions to push their registration numbers. Mercedes is willing to spend some money to have a photo finish with BMW (or Ford with Opel, etc.). But that house providers would do the same and establish bank subsidiaries to shift the "registration numbers" between Weberhaus and Kern-Haus (or similar), at least I haven't heard of that yet. Although that would certainly be a nice idea: I build a house with provider X, after the speculation period expires I put it back on the market and immediately subscribe to the next one

I think: 20% equity, then a loan amount that I can manage in 15-20 years,- that would be healthy. Almost 100% financing stretched over 30 years, no.

This train left the station already 5 years ago, in some regions even earlier.

That is only true if I can/want to afford it either way. Often the arguments are mixed up. For example, I have 10,000€ left and say: The car for 10,000€ costs me only 9,000€ if leased, therefore I lease it. Then it has nothing to do with buying on credit. It’s different if I say: Leasing is cheaper, therefore I lease the car with a list price of 60,000€, where actually only the 10,000€ used car would be an option. Just like the advertising motto: "The more I buy, the more I save."

And that’s exactly it. If instead of buying for 10k, I finance (lease) for 60k, I have huge liabilities on my back for an asset that depreciates in value. Cars are 99.99% pure consumption. Nothing more, nothing less. The only sensible financing for private individuals can therefore only be one (or more) real estate(s), provided it’s not located in a completely stupid place. At least I’ve never read about anyone who became wealthy through leasing.

Car? Twingo. 12-2013, 7300 with registration and all-season tires, runs and runs. The only thing the grandchildren giggle about is that we roll the windows up and down with a crank. No leasing beats that.