Construction costs are currently skyrocketing

I can't eat the lump anyway, I need liquidity in old age for that.

And if the house ever loses value, you can ponder interest rates as much as you want, your wealth will suffer massively. All eggs in one basket. Unfortunately, I can't sell it bit by bit either, at best refinance it. Also lame.

I once had an interesting conversation with a VW engineer. He couldn't understand at all why it's a dumb idea to work at VW, buy a house in Wolfsburg, and build wealth especially in the form of VW shares. If it crashes there, it crashes big.

It's even best if the wife also works at VW.

I know what you want to tell me and you're not entirely wrong. We probably think similarly, only the order of investing surpluses will be different for me.

The liquidity also comes from having a paid-off house at 50 due to special repayments, and then you can only invest the money in ETFs or other investments because you don't know where else to put the cash :p

On the topic of lump sums: I'll put it this way, we live in a financially strong region with many corporations within 10-30km around Nuremberg/ Erlangen/ Herzogenaurach. It's not like in WOB where there's only VW and the suppliers. Also, nothing will ever be put in front of me here that will reduce the value.

But if it comes to that, the stock market will crash beforehand; a diversified portfolio won't help anymore (just my personal opinion).

of course minus fees

Costs (front-end load and ongoing costs for the Deka Dax ETF) still deducted, it was better than SoTil.

Everyone can do what they want. I think we will split it into three parts:

1. Minimum repayment rate of the bank of initially 1.5 % p.a.
2. Difference from initial repayment of 1.1 % p.a. (initial repayment rate of 2.6 % p.a. = full repayment by the end of the total term without SoTil) into an ETF savings plan as a fixed repayment substitute (assignment to the bank)
3. €500 p.m. into a second ETF savings plan instead of an annual SoTil without assignment, so that the money can possibly be used for something else.

At some brokers, ETF savings plans are without trading fees;)

With stocks or fund gains, you still have to pay taxes. With saved interest, you don't. But otherwise, in the long term, broadly diversified is probably not so risky either. But it also depends on the financing.

25% tax. Most will have financed with 1,x%. With a stock return of 8%, 6% still remains. So 4% more than if you make early repayments. The tax is also only incurred upon sale.

Once again on the topic: With our architect's design, we have now pulled the emergency brake and are planning completely anew 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 used up the buffer before we even began. So now it will be the rectangular box instead of the angled building. It was a tough decision, but a lower, more manageable rate will probably make us happier in the long run than the more elaborate, supposedly nicer house. But don't worry, the room layout still fits us 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 these days?

That would interest me too! Which feedback exceeded the cost estimates? Which tenders have you already done? Shell construction and roof? Did you have to completely revise the structural engineering and building application then? We will probably get the first offers in the next 4-6 weeks and are already thinking about how we might save without starting the planning all over again.