Finance construction project, total costs: €395,000

Typical for me, Caspar2020 brings a completely nonsensical statistic to the table, grym and willo culture into the thread. But while Caspar2020's nonsense goes unnoticed, people want to attribute it to the culture. Above all, characteristic, everything is lumped together, that's how it is and it has to be that way for everyone!!

Caspar2020, sorry, but that is not true. Over 30% of the currently active loan contracts have an initial repayment of 1%.

source ?

You financial artists can gladly do it all that way. The simple building society player, as I am, repays and says: §1, now it is mine.

Of course, that then assumes that financially responsible people are acting. If I pay down 2% although 5% would be possible, then I of course have to save the difference

Then we would already be at 6-6.5% annuity. And I completely agree with you that if one has the financial means it can definitely make sense (except maybe in stocks) not to push the repayment rate to the extreme.

However, if one cannot manage an annuity of 5% (even purely mathematically (i.e. repayment, other savings contributions)), because there simply isn't enough money left at the end of the month, one should really think it over carefully; even if it can be presented as feasible by the sellers.

Don't be confused, over 2% is already a lot and rather rarer than below 2%. The statistics also include KfW funds in percentage terms, where the repayment rate is currently already - mostly over 3% - higher, and must be higher.

At Europace, 7.9% of the loans are KfW loans; but that doesn't really change things fundamentally or turn the statistics upside down.

As I said, only 12% of the loan (components) mediated through Europace had 1% repayment (in the last quarter of 2016). The vast majority have an initial repayment of 2% or more.

There may still be banks that allow 1% repayment, but most banks are moving towards requiring 2% as the minimum repayment, which is more than understandable from a risk perspective. I strongly doubt that a large portion of private construction financing has an average initial repayment below 2%. Even individual components will rarely have this if they make up the majority of the financing.

If you can easily repay 3, 4, or 5% per year, in my opinion there is no reason not to invest part of the repayment with higher returns instead of repaying directly. In the long term, returns > financing interest rates are definitely not excluded. This will most likely turn out well, but it should not hurt if it doesn’t work.