Error in financing?

2016-06-07 18:09:17

You would not only have to rent out the house immediately, but also rent something of your own, and usually, the installment won't be the only expense remaining.

And you should take this risk much more seriously than any interest rates or the question of whether you can afford the installment with your current circumstances.
Really calculate this break-even for 2% repayment and 3% repayment. Then you will get a real feeling for the risk.

That is also the reason why equity is so important for lower and normal incomes. If you have already reached the break-even point at signing, you can repay very little for 10 years and speculate a bit on the future.

This is what many have been trying to say in this thread from the beginning, while you only wanted to talk about total costs and interest risk.

2016-06-07 18:18:21

I don’t understand about rent... of course, you have to live somewhere renting... but the mortgage payment pays off through renting out, or possibly then there is some difference.

What has to happen that you can no longer afford rent at all? Then I would have a big problem even without a house, especially since rent without a house is almost as high as a mortgage, that’s the stupid part.

Unfortunately, I don’t see any realistic scenario where something happens that is not so bad that you can’t even rent out the house, which wouldn’t already completely ruin your life. And then I wouldn’t care about personal bankruptcy either.

But the discussion leads nowhere - I just want to make it clear that you don’t have to sell the house immediately if there is less income, someone becomes disabled, or something like that. It’s not calculated to be so expensive that you can no longer afford the payments or the difference between rent and mortgage.

2016-06-07 18:20:58

I don't understand the rent thing...of course you have to live somewhere paying rent...but the mortgage installments pay off through renting out the property or, if necessary, there might be some difference.

What has to happen for someone to no longer afford any rent at all? Then I would have a big problem even without a house, especially since rent without a house is almost as high as a mortgage financing, which is the stupid part.

Unfortunately, I don't see any realistic scenario where something happens that isn't so bad that you can't even rent out the house, and that wouldn't already completely ruin your life. And then I wouldn't care about private insolvency either.

But the discussion leads nowhere – I just want to make clear that you don't have to sell the house immediately if you suddenly have less income, or if someone becomes occupationally disabled or something like that. The whole thing isn't calculated to be so expensive that you can't afford the installments anymore or the difference between rent income and installments.

If your assumptions are correct, every rational person should immediately build several properties with 100% financing and rent them out. After the financing period ends, they sell them and become rich. Why does almost no one do that, and why don't banks finance this?

2016-06-07 21:56:52

Today the Schufa self-disclosures finally arrived, I had never known them before... I don't know if that means anything yet, but overall we have a base score of 95,x and 97,x%. Sounds not too bad, but maybe you need 99^^

2016-06-08 06:48:39

I find the building savings contract relatively interesting because I can change the payment amount as often as I like and also pause it for 1 - X months. Especially for me as the "sole payer," I found that somewhat attractive. Over the course of about a year, I have already increased the installments twice and made two smaller special repayments. That seems to be a bit easier to manage with a building savings contract than with a loan. I like flexibility, and if I remember correctly, I can also make special repayments over 5%. The flexibility mainly prompted me to secure part of it with a building savings contract, or rather, that is exactly the amount that remains after 10 years on the actual loan. What a coincidence

2016-06-08 07:29:41

Have you ever thought about what happens to your building savings contract if you take advantage of the great flexibility during the saving phase and pause for 1-X months?
Then the building savings contract will not reach the allocation maturity. And then the fun really begins when the actual loan expires and the responsible building savings contract is not available.

Then a new financing is required, and not just for a certain partial amount X, but for the entire amount, since nothing has been repaid before that. And that at a time in the distant future when you have absolutely no idea about future interest rates.

On top of that, besides the new loan installment, the building saver must also still be funded.

And even if I stick 100% to the building society's savings plan, no advisor wanted to give me a written assurance that it will indeed be allocated exactly at the time when it is needed. Then why would I even conclude a contract with them?
That was the reason for me to say goodbye to the appointment.

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Error in financing?

77.willo

Henrik0817123

77.willo

Henrik0817123

Rollo83

matte