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

Maybe I am too naive, but if I had the opportunity to pay off our house completely, I would do it. Why? Then it is mine.... no one can touch it, and I don't have to deal with any banks. I would also be rid of the worry about where to put my capital. Maybe I would lose a few thousand because of it, but it would be worth it to me. In any case, I am very happy currently not to have any savings balance. I gladly put every spare coin into the house. The rest feels like rent. So that’s fine. For tax purposes, you still have to pay taxes on the earnings from your capital, and additionally pay interest. That the bank advises against it should also be clear. They are missing out on a 100% safe business. The only question you should ask yourself is, can you invest your equity in such a way that you can sleep well with it, and it yields enough to compensate for the additional interest costs.

Paying in cash would be no question for me at all. If €2,000 were available for a payment, there would be no liquidity problems.

I believe the question should not be answered so easily. Anyone who produces such a casual post (shed costs 400k, additional incidental expenses then also from equity) should actually have knowledge of money and is totally in the wrong place in this forum. Unless one has no knowledge of money (e.g. because inherited) and is looking for help here, which we cannot provide.

Well, can you really pay for everything from equity? Or only the house including fees. Renovations, small changes, etc., and the car needs to be replaced soon? Then I would have someone calculate how much it would be to finance only about 10-20%. I don't know the conditions (they aren't common), but possibly cheaper than if you had to take out small consumer loans later. So I would keep a small amount for liquidity. I definitely wouldn't hand over all the cash, because: cash laughs.

Paying in cash, that would be no question for me.

I would like to say why:

- You don't have to worry about how financing will be "managed" in case of having children or unemployment.
- Remaining debts or fixed interest rates are not issues you have to deal with.
- The house belongs to HIM and no one else (ok, maybe the partner).

Apartment for rent as a capital investment? I find that pointless, then the apartment is paid in cash while the home is financed and the interest on the debt cannot be claimed for tax purposes. In addition, there are the risks that a landlord has to bear (e.g. rental loss).

Financing a house and investing in an investment form where the interest income is higher than the interest on the debt? In my opinion, only achievable through speculative products = risk.

I cannot share your three reasons. If the money is always there to pay off the financing, I also sleep very well during unemployment. Outstanding debts are also not an issue; I can simply pay them off. The costs for financing are also limited - real estate financing without land register security. For that, the equity would have to be pledged and could generate good returns (as long as it's not a daily allowance).