Financing without equity with security?

The advantage of owning a house is that as long as you pay your installments, you cannot be evicted (unless by your wife ) You can also design your house/land the way you want, not the landlord. Another advantage is that the installments are pretty fixed. How rents will develop due to the new energy regulations is hardly predictable. I recently saw a report on Arte or 3Sat where rents after renovation suddenly doubled, and that was even legally acceptable.

These are also points I haven't even mentioned yet. Such things naturally linger in the back of your mind.

In my opinion, you have a fundamental misconception. The 5% refers to the invested capital. But an investor will hardly use only equity; rather, they will use as much debt as possible. As long as the interest rates are <5%, they even leverage their return with it.

Of course, I am talking about return on equity, which is the relevant measure when it comes to seeing who ends up with more, the real estate buyer or the one with the stock portfolio. The leverage is already included there. The total return is naturally considerably lower (logically, you have to pay interest on debt).

We will also build; I can very well understand why one would want to build or buy, but the big financial advantage is simply a misconception.

You are comparing apples and oranges. Try to find a property that has similar features as your house. Then you definitely won’t get away with 1400 cold. Was your construction site Jena? How about the architect’s house, 200 sqm for 3000 cold?

That may indeed be a very simplistic way of thinking, but I count features as part of the “living quality” just like garden and so on, and that is of course significantly higher in an owner-occupied home. After all, that’s precisely why we build. But we don’t kid ourselves that it’s about “saving rent.”

But I even assume that real estate prices will continue to develop in the next (at least 10) years as they have in the last 20 years. Land prices here have risen from 100,-DM/sqm to about 150,-€/sqm within 20 years. I wouldn’t be too worried about resale value.

Ohohoh…I’m very skeptical about that!!!! Demographic change!!! Just look at how many pensioners there will be in 20/30 years and how many employees will still be paying taxes. Who is supposed to buy all the houses? There is going to be a nasty awakening! And don’t come to me with the fairy tale that “the refugees” will solve the problem! Sure... and there’s a fair in heaven.

For us, a possible sale/rental in old age was very much tied to the search for land (location, location, location!!!)....Why? What should we do in old age with more than >200 sqm of living space and >1000 sqm of garden? We know people who “are fed up” with 130 sqm owner-occupied homes in old age.

Greetings, Steffen

Few think like you, Steffen – and I build larger than 200 sqm, but am well below your 850,000 euros.

are also 220sqm with us but the plot costs 330,000.

Ohohoh... I'm very skeptical about that!!!! demographic change !!!

That's what I generally take away from your posts. However, you also think on a much larger scale than we do:

over >200 sqm living space and >1000 sqm garden

850,000 euros

something like that is out of the question for us by far: for us it's 519 and 145 sqm .... at 300-350,000€ ... small potatoes in comparison