Construction costs are currently skyrocketing

Because you could generate more with the money if you achieve about 10% p.a. like Bookstar. Sondertilgung makes more sense at the beginning of the financing, but the market currently offers better opportunities.

Because you could earn more with the money if you achieve about 10% p.a. like Bookstar. A special repayment makes more sense at the beginning of the financing, but the market currently offers better opportunities.

Yes exactly, it could yield 10%, but it can also backfire, and in the end, it rather ends up as equity for the next car than in the special repayment. :cool: So I'm not that reckless to invest, for example, saved 20-25k€ p.a. in a risky investment that possibly yields 10% return.

With 10% it is not really risky yet. But everyone has to decide that for themselves. There is no "right or wrong".

Yes exactly, it could bring 10%, but it could also backfire and in the end it ends up more as equity for the next car rather than in the special repayment. :cool:

So I’m not that reckless to invest, for example, saved 20-25k€ p.a. in a high-risk investment that might bring 10% return.

Then just do ETF World, over 15 years it’s 7% (almost) risk-free. It’s still by far the better deal than a special repayment.

And I thought this thread was about the rising costs of building materials and not investment strategies. Perhaps this undoubtedly interesting topic would be better suited in its own thread?

Once again on the topic: with our architect’s design, we have now pulled the emergency brake and are planning a completely new design with cost-effective construction in mind, including a new building application. The first feedback all massively (> 15%) exceeded the architect’s cost estimate. That would have practically exhausted the buffer before we even started. So now it will be the rectangular box instead of the angled building. It was a difficult decision, but a lower, manageable installment will probably make us happier in the long run than the more complex, supposedly nicer house. But don’t worry, the room layout still fits our needs and the “must haves” are still included for us. Have you had similar experiences in current tenders? How are the usual prefab house providers offering at the moment?

I did the math. Instead of making a €6,000 special repayment every year, we will save €500 per month in an ETF savings plan and make a lump sum special repayment after 10 years (= end of the fixed interest period). With an average return of at least 3% p.a. (I don't remember exactly), I think this is already better than making the regular annual special repayments.