Buying a house with cash, is it sensible? No trouble with the bank, installments, etc.

Hello everyone,

I think I’m in the right place here, a similar post has already helped me. However, I’m still looking for suggestions/ ideas/ comments...

First: I’ve fallen in love – with a house. It’s really a great place in Franconia and that’s probably going to be it. I don’t want to burn money, so here’s the plan: I have never been a fan of contracts or long commitments. Even my mobile phone is prepaid. When calculating various loan options, I realized that after a certain term you’re basically just working for the bank and with long terms you almost pay back the loan twice. There is the option to pay for the little house in cash. “No!” says my bank advisor. “The interest rates are better than ever!” “Don’t you dare take out a loan!” says a good acquaintance. “If you live in it yourself, you can’t even deduct the installments from your taxes!”. So, there we have it. Two people, two opinions. That’s why I’m here, to get a third one.

According to the loan calculator, for me: term max. 10 - 12 years, with 75% down payment, max. monthly rate €2000 possible. Or pay cash and no hassle with the bank, installments, and whatnot... The place is supposed to cost 400k, plus all the notary and other fees on top.

So far I haven’t been able to find any disadvantage speaking against a cash purchase, but I’m also not sure. Could it be that my dear bank lady is simply after a brokerage commission and therefore wants to tie me into this loan?

If it's cash, why not pay in cash. What is paid is paid. Why throw interest to the bank's throat, even if it is so low.

What does your tax advisor advise you? They definitely have a different perspective than the bank lady.

If enough money is available and the house is owner-occupied, I would pay cash. A loan then has no advantages. If the money possibly comes from an ongoing asset management with a decent return, then the question is harder to answer - wealthy people usually do not keep their money under the mattress. House yield (does it actually exist considering inflation?) vs. investment yield.

Preferably cash, if possible.

Dear bar, if possible.

Why?
Jump off the bridge! I won't do it without a reason!!!