Buy a condominium or save equity

Lingering around is better than a hasty purchase!

Regards, Yvonne

Drifting along is better than a hasty purchase!


Regards, Yvonne

Hi.

It shouldn’t be hasty, that’s why I’m trying to inform myself. ;)

What do you think?

A mortgage-free condominium can be used as collateral in real estate financing, but cash is always easier.

However:
Putting all one's assets into a risky illiquid investment is never a good idea. It has already been mentioned that the return can also be negative.

It is questionable whether the overnight money accounts were optimally chosen. It needs to be checked whether, considering deposit insurance, market-appropriate interest-bearing accounts were selected. Since the house purchase is planned, longer-term investments are not advisable. However, various fixed-term deposits over 6 to 12 months are IMHO definitely possible and could improve the return somewhat.

I would definitely not buy, or rather, the purchase of the plot was also delayed for us and we did not buy either... If you use the apartment as equity, the bank will surely want to register itself in the land register there as well. If you later want to sell the apartment, the first problems will already arise.

To obtain tax advantages, one should always try to use the equity for the owner-occupied property and acquire the rental property with the highest possible loan portion (in the case of a house with a granny flat, this is often done with 2 separate loans). Besides, you simply have to see that a condominium is always also a certain speculative object with certain risks. If you have a problem tenant or there is a large construction site nearby, this always affects the rent and ultimately your own home as well.

Better leave it be. As it sounds, it’s no longer about 5-10 years until the plot purchase.

Thank you for your opinions. I will then not buy and hope that we find something soon and "may" raid our day-to-day accounts :) Best regards

Why not buy? If location and price fit, this could definitely be interesting if you want to rent out later. Ideally, the tenant pays you the installments and you can deduct the interest on the mortgage in your tax return. Therefore, you should invest as little equity as necessary. There are also some videos on YouTube about how to invest best.