If insolvency is a thought that latently accompanies your life and not just a rather theoretical consideration, then better don’t buy a house.
No idea if I’m more anxious than normal about this – I just know that so far I’ve done well with this fear. Fear also makes you attentive. It hasn’t harmed me so far.
In the end, every installment is also an investment. Conversely – if, due to illness, economic upheaval, or any other misfortune, you are no longer able to pay, then the house will be sold again. That’s unpleasant – but a manageable personal risk, since you won’t necessarily remain unrealistically in debt until the end of your days. Especially with the developments in the real estate market. Since in the worst case with the company only the company assets are at risk – so what. Do it!
You mean the company assets, right? Only the shareholders’ assets would be pretty bad. But seriously: It’s usually not that simple in practice. For most transactions and costs of course the limited liability is restricted to the share capital – but the house bank naturally wants to see a personal liability of the shareholder for loans, etc. No one gives you a big loan if only 25k share capital stands on the other side.
If I go bankrupt, I have to move anyway – or as someone said here: keep a low profile. At least then I once lived in “my dream house.”
What puzzles me, but has nothing to do with you not being able to afford the house, is that you don’t mention any pension insurance contributions or any protective insurances like e.g. disability insurance, etc.
1.0% for 10 years fixed interest is not so great either. We get a rate of 1.05% on 20 years for under 80% financing including 5% special repayments and two free repayment rate changes.
Yes, true, but I do have disability insurance. I don’t pay pension insurance contributions. My plan for old age is an appropriate savings and investment effort. I am funding a portfolio and will continue to do so alongside the house repayment. Ideally, the house will be paid off by retirement and the portfolio still well filled. In addition, there is company pension provision. If later “only” the house is paid, then hopefully it has been a good investment and valuable enough to secure my retirement income after a sale.
Financing is no problem, I wouldn’t worry about that.
But the house price seems anything but a bargain to me.
At 230€/m² land value, a lot remains for the building fabric.
Sure, no reference values are paid, but if one calculates with a somewhat realistic 150%, i.e. 345€/m², the plot is worth ~280k.
That leaves over 700k for a large but otherwise nothing extraordinary house by the previous description.
For 700k you could also build your own truly customized dream house.
P.S. I haven’t taken the additional costs into account, which somewhat relativize the calculation but don’t make it a bargain either.
I wanted to send you a message with more info – I’m not allowed yet. But sure: At this price I can of course also build something nice – but I decide very consciously against building myself: I don’t want to deal with the associated stress. Of course, I wouldn’t do everything during the build the same way as with this house – but I wouldn’t be far from it either. And probably no one has built without any gray hair. I just don’t want that.
Maybe the OP can post 1–2 pictures. Then one can better get an impression.
I’d rather not publicly show pictures of a house that’s for sale – it doesn’t belong to me. I wanted to send apokolok some info by message, but that’s not possible – I probably don’t have enough posts yet.
I believe the house is worth it. I also see significantly more inquiries than usual on Immobilienscout – sure, that doesn’t have to mean anything, but when I compare, I believe it fits – or at least isn’t significantly overpriced. The bank also nodded very favorably regarding the mortgage lending value – but of course, they want to make a deal too.