Home financing ever possible? Probably not!

And then: Was the price for the property overpriced? (I actually assume so): And: What will you do when your fixed interest term ends and the key interest rate rises? Then your installment will increase sharply, and no one really knows what will happen with energy costs at the moment, but I think it will get worse. Do you have an emergency plan for these cases?

(Many pages ago) Yes, the property is relatively expensive. So, when I look at the current construction costs with the current energy prices, I think it’s reasonable, BUT if that should change again (who knows) then expensive. Otherwise... We did not initially go for the minimum fixed interest term, but at least for 15 years (which is still quite short here in the forum). If someone is very uncertain, they can also choose even longer. The surcharge from 10->15 is usually significantly higher than from 15->20, but for us, we decided that 15 years gives us enough security for now. Background: Since you can terminate early after 10 years from full payout, that gives a few years to get organized and arrange follow-up financing (somewhere between just before the right of early termination and the end of the fixed interest term). Honestly, I rather believe that interest rates will be lower in that period than they are today, but who knows. Otherwise, the fixed interest term simply continues until the end and then a follow-up financing is arranged. By then, the debt is at least about a third lower than today. Which possibly could somewhat offset very high interest rates by extending the term, even though we do not hope for that. But honestly? If in 15 years we absolutely can’t afford the house anymore, then that’s just how it is. Then we will have lived there nicely for about 14 years, and then a new phase of life begins. My home is more where the people are who are important to me. In that sense, losing the house unintentionally is certainly bad, and I wouldn’t wish that on anyone, but for me personally, that is very far from my “worst case” scenario.

I have now skimmed through the thread. My opinion on it:

In recent years, it would not have been a problem with your salary to buy and finance a property – even 100%.

Why didn’t you do it? The fear of committing and having to decide. A property makes you immobile and takes away a lot of spontaneity and freedom.

You write that you would now be satisfied with a terraced house as well. Would you not have been satisfied with that two years ago?

Why do you want a property? What are you aiming for with it? Status? Wanting to settle down? Simply wanting to have it?

To me, you are acting quite aimlessly and you come across as pretty envious and dissatisfied. Plus a good dose of cluelessness: why invest a large part of your savings in precious metals? In view of a house desire, I can imagine much more sensible investments.

Then the whining about current market prices and that the house of your buddy doubled in value in four years. What exactly does that bring him? If it is sold, he will probably have to pay a fortune in rent somewhere else for a comparable place. So he stays in the house and keeps paying his rate.

On the topic of fixed interest periods: those who in recent years only secured interest rates for 10 years surely also invested a large part of their savings in precious metals. Normal middle-class people who informed themselves accordingly before buying and got advice knew about the risks and fixed the interest rates for a longer period.

Quote from our advisor four years ago: I have been telling customers for ten years now that it won’t get cheaper and soon it really won’t. Secure your interest rates for the given period and you will have peace of mind permanently, and inflation pays for the apartment. Our reaction: bring on 30-year fixed interest!

A few days without checking here and then such a thread... well then, let's go:

We have saved up equity, as mentioned at the beginning

Now finally name the number: How many Euros do you have and how many kilograms of gold?

But are you actually aware of the fact that current prices for real estate do not reflect that value at all?
Is it really fair if 600,000 is asked for a house, for example, although it REALY might have half the value?

The real value is the purchase price. That simple. If you don’t like the price, you can renegotiate. And everything that happens after the purchase doesn’t matter at all: You want to live there and not use the property as an investment to sell. You shouldn’t even try that because you have less than zero clue about investments.

And: What will you do when your fixed interest period ends and the base rate rises?

Nothing will happen: Either the installment gets more expensive or you stretch the term. Then it just goes into retirement. It will be less than what you would pay in rent.
And even if it gets more expensive, that wouldn’t interest any normal person: Salaries rise according to inflation. Especially if one of you is even a civil servant!
And heating costs hardly concern homeowners anyway: You have insulation :)


Really just unbearable this embarrassing victim attitude...

(...)
Quote from our advisor four years ago: I have been telling customers for ten years now that it can’t get any cheaper and soon it really won’t be possible anymore. Secure the interest rates for the entire term and you will have peace of mind for good, and the apartment will pay for the inflation. Our reaction: bring on 30 years fixed interest rate!

He has been telling customers that for 10 years, aha. Ten years ago, the interest rates were still at 3.5-4% for 15 years fixed interest period. I financed at 0.9 two years ago.

30 years? That wasn’t available under 1.7% if any bank would have done it at all.

That makes 71,000 EUR interest after 15 years at 1.7% for my loan amount and same rate, compared to 35,000 EUR at 0.9%.
2,400 EUR per year that I can either spend more or put into extra repayments...

Where the interest rate will be in 10 years? No idea. Maybe at 8%, but maybe also back at 1%. The next financial crisis is already in sight anyway.

I was very pleased to see here how the sometimes stupid, sometimes racist, sometimes just whiny talk of the OP is being countered. Great forum.

that is typically German. Fear, envy, and financially inexperienced