Assessment of Financing New Construction 425k € / Overall Financial Situation

Advantage if you follow through: You have lived beautiful years with your children in a great environment

And after 15 years, basically nothing paid off!
Sorry, but that is absolutely unrealistic nowadays (with this interest rate) to start with a 1% repayment and hope that it will get better later (with children and all)!

And to believe that if the house has to be sold, you’ll still come out ahead… :oops:

Yeah, it takes a lot of optimism to plan like that. Sure, with a lot of luck that works out. But just imagine a divorce in 15 years and before that a slight normalization of the current bubble --> house gone, debts still there.

The worst thing is when something goes wrong right at the beginning, when nothing has really been paid off yet. After that, every month works for you: you pay off the loan and the prepayment penalty also decreases (in case something happens that forces you to sell). I also wouldn’t do 1% repayment; if you need that with today’s interest rates, you simply can’t afford the house.

I am a single parent, meaning everything rests on my shoulders. If something happens, if the 15 years are up, I’m currently sick or who knows what... And I don’t get follow-up financing... Well, then I have lived nicely for 15 years. The children are out of the house. So what?
If next year or in five years, anyway in the near future, for example I become seriously ill or unable to work... Stupid, of course. Maybe I can’t keep the house.
But looking back after 15 years and thinking: if only I had... Everything was fine... That’s stupid too.
It’s a matter of attitude: glass half full or half empty...

I basically see it similarly, but in 15 years, the OP will still have children who haven't left the house. So it's not so easy to just sell the house. And there won't be infinite price increases on real estate either. At the latest, when interest rates - for whatever reason - rise, the bubble will burst. Then you can't afford the loan anymore, as almost nothing has been paid off, but the sale also doesn't bring in enough.

I wouldn't do 1% repayment either; anyone who needs that at today's interest rates simply can't afford the house.

I see it the same way. You can still go with the 1% repayment route, but you have to be very aware of all the consequences.

:) That I would get chewed out for my suggestion was clear to me. Yes, a positive outlook is part of it.

But seriously. The original poster can afford an annuity of 1K per month with his net income. Even with additional costs, he does not exceed the percentage level relative to income that would be necessary for a family-friendly rental apartment. Of course, things can go wrong. The biggest risk I see is especially in a separation. You should be reasonably certain about that.

If they finance this over 15 to 20 years (with minimal repayment) and then actually have to sell due to exorbitantly increased interest rates (which I don't necessarily expect), they still had a nice time with the children, precisely in the phase of life when it matters. The loan amount remains the same and does not inflate. If the divorce doesn’t happen right at the beginning, then even in a sale they would not come out at a loss (assuming the house is not in [Wolfserwartungsland]). Even at +/- 0: What wealth would they have built up in a rental apartment in the same time?

Many fail already at the plot. The original poster already has that. An inheritance will come at some point, too. One shouldn't see all this too pessimistically. Realism is enough :cool:

Stupid question, but can you really get it that easily? I mean, I could imagine that banks don’t often offer such a low repayment rate and if they do, then with corresponding interest surcharges...