Building a house without equity?

@ ...I understand what you mean. Shopping works without an overdraft.

That you don’t build up equity is not always necessarily your own fault. Not everyone is surprised with a savings book at 18. I am also a late repatriate. That means the parents here cannot support you with 50,000 during construction, as is often the case with locals (and please don’t tell me that’s not the case, I know enough such people).

That’s not an excuse either! You have to see how to move forward. But if the car, washing machine, or something else breaks, you can’t say... house has priority in 15 years!

Also, I’m not doubting the saving itself, but the amount saved and how much it will be worth in 15 years!

Regards

@ ... no offense, but how did you build up 420,000 equity?

Some prior support from parents, grandparents was certainly necessary.

Regards

@ ...I understand what you mean.
Shopping works without overdraft.

The fact that you don’t build up equity is not always necessarily your own fault. Not everyone is surprised with a savings book at 18. I am also a late repatriate. That means the parents can’t help with 50,000 when building, as is often the case with locals (and please don’t tell me it’s not like that, I know enough people like that).

This is not an excuse either! You have to see how you can get ahead. But when the car, washing machine, or something else breaks, you can’t say... house has priority in 15 years!

I also don’t doubt the saving itself, but the amount saved and how much it will be worth in 15 years!

Regards

No one is talking about blame. But these are exactly the arguments I keep reading here in the forum over and over again..."I couldn’t save because I studied, or or or"! So what? Nobody cares about the reasons! The fact is: Without equity, you shouldn’t even think about building! I started saving during vocational training (more than 20 years ago). With a small home savings contract of 20 DM per month (300 DM trainee income). That’s how it starts... whoever doesn’t do that... just doesn’t. But then has to accept that they have no equity. Period! So... don’t whine... and don’t come up with some explanations... but make a plan and start saving. If you want property, cut all unnecessary expenses and save, save, save! If that doesn’t work... find yourself something nice to rent, that fits your income. It’s that simple.

With "I want I want I want" you don’t get anywhere in life. You actually learn that already in kindergarten

@ ...no offense, but how did you build up 420,000 equity?

A certain advance contribution from parents, grandparents was surely necessary.

Regards

Some people just work diligently We also have such a high equity and I still have a cushion of 130k. I have nothing from a company... on the contrary: I have granted two loans in the company (cars) amounting to several tens of thousands.

@ ...no offense, but how did you build up 420,000 equity?

A certain advance from parents, grandparents was certainly necessary.

Regards

I can tell you exactly how I came to 420k equity, completely without help from family.

About 20 years ago, shortly after finishing my studies, I bought a 60m² condominium in Munich for 150k (without equity), moved out 2 years later and rented it out until recently, then worked like crazy for 10 years (double shifts from 8 a.m. to 11 p.m.) and paid off the apartment completely 2 years ago. Last year I sold the apartment. Thanks to the housing shortage and price explosion in Munich, I am now able to have this much equity.

Steffen, something like that never has to do only with diligence, but also with luck. For example, alongside my full-time diploma studies plus work and later "only" work, we had our 5 children and still I didn't save 420,000. Although I was very diligent at work and at university. It's just not possible for everyone to earn that much, even with diligence.

On the topic: we bought 8 years ago during our studies and teacher training without equity. At that time, we had a net income of almost 5000 per month (both working plus side jobs) and already had 2 children. We borrowed 200,000, the house cost 180,000. We renovated quite a bit and made sure not to repay too little. That went quite well. But: my husband's income is very secure due to his civil servant status and overall it was rather higher. With significantly less, I wouldn't have trusted us to do it, because you also want to build reserves for, e.g., car, musical instruments for the children, fridge, etc.

Could your wife perhaps work more? Further her education and thereby generate more income in the future?