House construction 2024, affordable with little equity?

I find it difficult to "work into" such a topic myself. Thanks, let's see if I can make sense of the videos. I struggle a bit with such topics. But just leaving the money in the daily allowance account is also not sensible.

Let's put it this way, the essence of all these videos is to invest regularly in an accumulating All World ETF; Vanguard products are particularly popular here as they have low annual costs (e.g. A2PKXG).

Very good investment products are physical gold and silver. These were and are my biggest, best, and safest investments.

Besides real estate, of course. I have largely stayed away from stocks. I also think nothing of ETFs. Passing fads.

If then, into a solid and long-term fund, like the Templeton Growth Fund. Free of sales charges and proven for many years.

You can also contribute to a classic home savings contract. Something that runs on the side. The important thing is just to do something.

Financial advisors, bank advisors, and the like ............. all want only one thing, your money!

Yes, that is exactly why a building savings contract is complete nonsense. Not only the fees, but also inflation devours the money. There are zero interest earnings. That is therefore even worse than under the mattress. For someone who is supposedly so clever and well-positioned, you give plenty of bad advice.

yes, but now that’s enough!!!

A likeable post @justcme!

As much as I find one post of yours likeable, the last posts are the complete opposite.
What kind of person do you have to be to already think about inheritance with 55-year-old parents… and have to throw it out here? :mad:

I just want to say briefly that I (hopefully in the distant future) will be the sole heir of a property, since my parents own the classic single-family home nearby.

that I will inherit someday. But that will take a while, my mother just turned 55

… why do you mention that? I mean… let your mother be 80?! What does that have to do with your finances today, what does that have to do with you?

I am a real estate agent and condominium administrator.

Then hopefully you also know that “your inheritance” will be spent on the care of your mother/parents.
Very likely the value of the single-family house will be exchanged for a small apartment in a senior residence. The rest will go for private care! - if your parents are smart.

I am actually speechless! I have also worked hard for a house in my life. And I am still working: on my house and with my 54 years still 13 years in my tough job. Probably like your mother.
If _my_ daughter spoke like you do here, I would definitely disinherit her and say goodbye to her now.
I don’t even think about my parents approaching 80 yet. I hope their house will cover their costs for a few more years.

I financed my rental property with a building savings contract. That wasn’t bad at all.
3.25 percent interest on the loan was super cheap back then. And I still have 1.5 percent interest on the savings balance. Where’s the problem?

Effectively, that was then 1.75 percent interest on the loan. In 2010, there was no alternative like that.

The purchase price could have also been paid from equity. But considering the very low interest rates and tax advantages at the time, as well as certain uncertainties, we aimed for good liquidity. So we financed 80 percent of the purchase price with 2 building savings contracts.

1 x as a loan and 1 x as savings. Planned duration was 13 years, but we could have repaid after 7. Since we had enough money, we repaid the loan in 7 years. That doesn’t really matter anyway.

I still have 1.5 percent interest and 50,000 euros on the savings building savings contract. That specifically means annual interest of 750 euros. For today’s standards, sensational. I hope they don’t terminate it.

Although I don’t know today’s conditions, my experience with building savings contracts is still extremely positive.

And although I don’t even need the building savings contract anymore, I still pay in around 320 euros every month. As long as it’s possible.
Inflation, yes, somewhat. If somewhere there will soon be higher interest rates on savings, I’ll just switch. But that is not foreseeable yet.
At a normal bank, I would now have to pay penalty interest on that amount.

It remains: You should have a building savings contract.

I financed my rental house with a building savings contract. That wasn’t bad at all. 3.25 percent for the loan was super cheap back then. And I still have 1.5 percent interest on the credit balance. Still. What’s the problem.

Effectively, that was then 1.75 interest on the loan. In 2010, there was nothing like that otherwise.

The purchase price could also have been paid from equity. But considering the very low interest rates at the time and tax advantages, as well as certain uncertainties, we aimed more for good liquidity. So we financed 80 percent of the purchase price with 2 building savings contracts.

1 x as a loan and 1 x as credit balance. Planned was a term of 13 years; after 7 we could have repaid. Since we had enough money, we repaid the loan in 7 years. That doesn’t matter anyway.

On the building savings with the credit balance, I still have 1.5 percent interest now and 50,000 euros on it. That means specifically annual interest of 750 euros. Sensational by today’s standards. I hope they don’t terminate it.

Although I don’t know today’s conditions, my experiences with building savings contracts are still extremely positive.

And although I don’t even need the building savings contract anymore, I still pay in about 320 euros every month. As long as it’s possible. Inflation, yes somehow. If there is soon more interest on credit balances somewhere, I’ll simply switch. But that is not foreseeable yet. At a normal bank, I would now have to pay penalty interest on the amount.

It remains the same. You should have a building savings contract.

If you have no idea about today’s conditions, I strongly recommend you first inform yourself and then recommend that one should have a building savings contract.