Home financing ever possible? Probably not!

It is WRONG that money comes into circulation when you repay a loan. It comes into circulation when you use the loan, for example, to pay the bills of the craftsmen. When repaying, it is destroyed again. The bank has to live and reinsure itself, etc., in the loan business with the interest.

Ok, point for you!

Anyway, I thank you for constructive suggestions and improvements, after all, nobody is free from mistakes.

If people address something factually, I can accept it more easily than when people are snarky and just want to attack.

Because even if I may have been wrong in some points, I haven’t attacked anyone here (I wonder if people would behave like this towards others in real life – probably not, it’s easier anonymously).

I was just looking for help on the topic here.

Best regards

Definitely, I thank you for constructive suggestions and improvements; after all, no one is free from mistakes.

Gladly, that’s what we are here for.

I wonder if people would act like this towards others in real life as well.

Personally, I can answer that with a clear yes.

I was simply looking for help on the topic.

A lot has been written now, partly off-topic, partly somewhat harsh, but I would be interested in what conclusion you have drawn: What are your next steps regarding homeownership, have you decided against buying a home, or do you need more time to think?

I am honest and can say that outside of this forum I have never read about people who are currently buying and planning a house (because I simply don’t know anyone who is in that situation right now). It feels like almost daily the press writes that the dream of homeownership is becoming increasingly unlikely. So I still believe that the trend really is going in that direction, but here in the forum it is apparently the case that people can still afford their own home, even if it brings them to financial limits. In the end, I think it is simply a question of willingness and how much one is prepared to give. (I have also read now from some that they were able to raise the equity completely on their own, but those are really more exceptions). Whether that is good or bad, I cannot judge yet. We will definitely continue looking.

Putting all side discussions aside, back to the core: Can you afford a home with a net income of 5200?

We earn about that much (regular income, but it can be higher due to bonuses, which are 100% dependent on target achievement, so no Christmas bonus or 13th salary that you can count on). I already had a condominium and have now built a single-family house (155m² living space). And both properties are in Berlin.
I didn’t receive any capital subsidy from anyone, only for the ancillary purchase costs of the condo my father lent me money back then (but not interest-free), and I certainly benefited from some favorable private loans that I either would have been denied or would have been much more expensive at a bank. But I have earned not just one but even two homes myself. Of course, there are corresponding loans against these, but even now during the subdued phase, the properties are worth much more than the liabilities. That’s why I can sleep like a baby despite financing into (theoretical) retirement. It’s clear that this is not for everyone, but for most people one property is enough.
So it is possible with a 5,000 EUR income – if you want to and are not aiming to buy in Munich.

The rule is simple: you have to start saving intensively at a very young age in order to be able to afford a house later. Additionally, you need to educate yourself enough to be highly valued in the job market. Mind you, in the job market, not for society. This increases your income.

The exception was the last years of the absolute low-interest phase. At that time, the institutions were glad to get the money into the hands of the people. As a result, even people who actually could not afford it were able to afford real estate. If financing was stretched to the limit, the current situation can certainly become critical. Let’s see what happens. What will happen is that we will have to accept a loss of wealth by large parts of society. People will also have to sell their real estate partially. Voluntarily or involuntarily.

It feels like almost daily the press writes that the dream of owning a home is becoming increasingly unlikely. I still believe the trend is really moving in that direction, but here in the forum it is apparently the case that people still afford their own homes, even if it pushes them to financial limits.

One must not overlook that the vast majority here financed their houses when the situation was more favorable. If I had to start from scratch at today's prices and interest rates, the matter would look very different. That would be at the limit or even beyond. But back then we didn’t hesitate long. We looked at the situation, found an affordable region, and got started. A bit of luck was involved with the plot. Whoever waits for it to get cheaper will eventually have waited too long.