Construction costs are currently skyrocketing

Everything that yields more than your interest rate is better. With the low interest rates on construction loans, that is no great feat.

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

In my opinion, those are just the bare return numbers. What you haven’t done yet with the 3% return (of course minus fees) is the special repayment. That’s like the endless discussion of special repayment vs. higher monthly repayment. While the one who ties themselves up with a higher monthly repayment definitely repays. The other just talks about the special repayment in December but then gets this and that and in the end, the special repayment either doesn’t happen or is much less. But everyone should do as they wish, I just want to say that what is repaid is repaid and I have a very good feeling about that.

Anything that yields more than your interest rate is better. With the low interest rates on construction loans, that’s not a big deal.

That may be so, but those who know what it feels like when a 30k€ portfolio turns into 8k€ prefer to make their special repayment.

If you don't want to, you just don't want to. That's okay. A large part of the wealth is already tied up in the property and every month it increases through repayment. That is too much concentration for me.

If you don't want to, you just don't want to. That's okay. A large part of the assets is already tied up in the property, and every month it increases through repayment. That's too much concentration for me.

You only want the lump sum, but if push comes to shove, you just don't want to share it :p

You just want the lump sum, but when push comes to shove, you don’t want to share it :p

I can’t really eat the lump sum anyway, I need liquidity as I get older.

And if the house ever loses value, you can ponder interest rates all you want, your wealth will suffer massively. All eggs in one basket.
Unfortunately, I can’t sell it off in pieces either, at best I can refinance it. Also annoying.

I once had an interesting conversation with a VW engineer. He couldn’t understand why it’s a bad idea to work at VW, buy a house in Wolfsburg, and build wealth especially in the form of VW shares.
If things go south there, they go south big time.

If it crashes, it crashes hard.

It takes a while until the big ones get into serious trouble. Long before that, many small ones are already gone. How many billions have they recently paid out of the "petty cash" in total?