Financing without equity with security?

Good, with us 250 sqm, to keep the comparison going. Half the land though - but what would I want the other way around with so much maintenance area? You always have that included in country living - free of charge.

But 330,000 euros here, hardly anyone pays that for a piece of earth - everyone has to decide for themselves, it would never be worth it to me. And sure, then it is usually less profitable.

Still, I build for about 200k cheaper - you must not overlook that. You simply build from the sum so high, many comparisons and calculations are quickly unnecessary.

300-350,000€ is also very much. The average is certainly a bit lower. But the absolute numbers do not matter either. Originally, it was about the ratio of financing, equity, and income

To get back to the topic...

Or the 330k for the land was incredibly hard for us, and even today I still think that's at least 150k too much. But I absolutely want the security to be able to "get out" of this situation at any time, and I only have this "security" in a Triple A location.

Something about the location: There were 22 plots of land between 330k and 700k euros. ALL were sold within 9 months. Currently, someone is selling their land again for 420 EUR per sqm (originally 280 EUR).

To return once again to the original topic:

For me personally, the point of quality of life is, of course, at the very top of the list: We currently live in an approximately 110sqm apartment on the 1st floor and we are, of course, doing quite well. However, not in the place where I want to live long-term, without a garden and without a garage/carport, which is important to me in the long run.

You want to enforce or improve the fulfillment of your wishes with the help of a burden on your parental home or your parents by getting better conditions. Do your parents already know of their luck? And where does your girlfriend fit in here? Is she just going along, do you want to share the property? Or do your parents agree only if the new building stays in the family?

Just asking out of curiosity ops:

An interesting discussion in which I would like to contribute with one or the other thought. I will primarily start from our situation. The decision for or against homeownership can be viewed from two sides. On the one hand from the financial side, on the other from the emotional/practical side.

Financial side:
It is true that in the long term (25-30 years) one can achieve a return of >5% with stock values. However, the first question to ask here should be – how much money will be saved?

Before building the house, we lived in an approx. 140 sqm apartment for about 1,000 euros cold rent. The apartment was about 12 years old when we moved in and the landlord had usually only done the bare minimum. Strictly speaking, it would have been only a 90 sqm apartment if a previous tenant had not professionally converted the attic (50 sqm) at his own expense (when he moved out, he received no reimbursement). The upper floor (2 rooms + anterooms) was only accessible via a narrow and steep spiral staircase, so these rooms could only be used as an office/guest room to a limited extent (as long as guests could safely climb the spiral staircase).
Comparable new 140 sqm apartments could be rented in our area for 1,200 – 1,400 euros cold rent (average 1,300 euros cold). We now live in our 170 sqm house. Extrapolated to a new rental apartment, 1,580 euros cold rent.

The monthly installment is about 1,700 euros. Difference available for investing is 120 euros. I have ancillary costs both for the house and for the rental apartment. Since the ancillary costs are generally higher for the house, I factor in another 100 euros savings for the rental apartment.

Thus, 220 euros p.m. can be invested = 2,640 euros p.a.
My Excel sheet results in after 30 years at 5% return and compound interest effect approximately 184,000 euros. (whereas our installment is designed for loan repayment after about 25 years)
Potential rent increases, possible withdrawals (if I already have the money, I might also treat myself), etc. are not taken into account here.
However, potential repairs are also not considered, nor the work I put into my house/yard day by day.
If I sell my house after 25-30 years, I probably will not get back the approx. 400,000 euros investment. However, I still calculate with 200,000-250,000 euros.

Emotional side:
We liked living in the apartment. However, the apartment layout was semi-optimal for us (as described above). The apartment also had only one bathroom and the property management initially did nothing in case of problems. I think the children's room had a thermal bridge. It was the warmest in summer and the coldest in winter. The kitchen was so small that two people kept stepping on each other's feet.

We have two small children. I found it extremely annoying every time that we had to trudge with our children to the nearest (or if it should be a nicer one, further away) playground. Consequently, sometimes we just left it. Now (or soon when the playhouse is set up) the kids, if they want or should, can play in the garden.
The apartment had a nice balcony (which was about 10 sqm of the 140 sqm). We were allowed to grill after agreeing with the neighbors – but only with a gas or electric grill. When it got louder (children playing with friends or having a party), you had to expect interaction with the neighbors at the door threshold.

We can use the garden, as far as the work is finished, to relax but also have a small garden bed where we grow vegetables.
The new house is equipped as we wanted it (or as the budget allowed). I love our two showers, where I can choose between rainforest shower / waterfall shower, (on one) massage jets or a normal handheld shower. After many years, we treated ourselves to a new kitchen with induction, side-by-side refrigerator, large pantry cupboard, etc.
Both children now have their own room. Visitors we receive (grandmothers + grandfathers) no longer have to rent a vacation apartment but can stay overnight in our guest room/office.
I think I could list a whole number of things that are better in the current living situation. If such points were found in a rental apartment/rented house, you could add quite a bit to the aforementioned rent.

One major plus that a rental apartment has, I do not want to leave unmentioned. Flexibility. However, I hope that I am finally settling down now.

Phew – this turned out to be considerably more than I thought before.

You want to enforce or improve your wish fulfillment by burdening your parental home or your parents, in order to get better conditions. Do your parents already know about their luck?
And what about your girlfriend? Is she just going along, do you want to share the property? Or do your parents agree only if the new building stays in the family?

Just asking out of curiosity ops:

The other way around, it becomes a thread:
(Among other things) this proposal came from my parents – until now, I had only considered the classic model of 27 years, 15 years fixed interest, and then either a new contract or a fixed interest via a building society contract, as I had not previously considered such an option. Hence the original post with the question about practical experiences with this alternative, which so far apparently has only been applied here by Sebastian79. However, it has already been used twice in my (extended) family. However, it has only been running for about 10 years each time, and I don’t know the details 100%.

My girlfriend is looking forward, just like me, to a home with a garden in our desired location. The house is, of course, intended for our family and should also be our retirement residence. Naturally, my parents would only be involved if we build the house for ourselves and not as an investment.

: I’ll read through that later – thanks for the huge contribution