How does everyone afford a house?

How does everyone afford a house? .... We’ve always wondered that too. The answer is: Nobody gets anything for free (well, some might from relatives). The key is simply to make compromises before building the house! If you haven’t saved anything before building, you can’t pay your installments! Nowadays, nobody can just finance a house on the side. Those who do don’t finance – they have the money.

If that’s still not enough: Keep saving equity. The more, the better – you shouldn’t even consider building anything with less than 70,000 equity. This was my personal opinion on the matter. We (he 31, she 28) have actually saved 120,000 in the last 10 years despite a lavish lifestyle. It does work – if you want it!

But that only works with the corresponding income. Or very good investment opportunities. 120 TEUR is already something.

If it is still not enough now: keep saving equity. The more the better – you shouldn’t even think about building anything with less than 70,000 equity. This was my personal opinion on the matter. We (he 31, she 28) have actually managed to save 120,000 in the last 10 years despite an expensive lifestyle. It does work – if you want it!

The statement is nonsense in general! How can you afford a house? a) Earn a lot (then little equity is also enough) b) Lots of equity – through inheritance, saving, or similar c) Buy existing properties in the middle of nowhere – that can be cheap too If you don’t meet a, b, or c, it won’t work out with the house.

The leisure position is also noticeably large. We (2 adults + child) come to €100, that's €3600 less per year

Huuuuuundred euros? I don't exactly consider our life to be a life of luxury. We go out to eat once a week and once a month to the sauna/pool. That alone makes (8x20 euros + 2x40 euros) 240 euros. Now if you add once a month going to the cinema or visiting the zoo or Christmas market or whatever, we're already at 300 euros. If the child is there, of course that costs as well. Piano lessons, sports club, tutoring, and other entertainments. That quickly adds up to 400 euros. To say "this month we either go out for ice cream or little Max is allowed to go to the pool"... that’s not a life. I don't want to offend anyone at all. It just horrifies me at the thought. I remember back to my apprenticeship when I had to scrape together every cent and count every day in the calendar until it was over. And to commit myself to something like that until retirement? Never ever! You scare me a bit. Somehow it all sounds like "living on the minimum or renting forever." I really pray that we get a cheap existing property because it’s haunted or something. Otherwise, I'll eventually be left with my inherited 3-room apartment. But by then I'll already be old...

well, I wouldn't see it as that black and white.
Go to your main bank once, disclose your financial situation and have them calculate how high the financing amount could be at the current time.

The good person will also calculate for you how much outstanding debt you will still have after the end of the interest rate fixation. Then you can reflect on it yourself. Personal opinions from a forum are nice but they cannot replace professional advice.

My bank, for example, values a car owned by you at 200 Euros per month. Calculated over a year, that actually adds up quite well. (without depreciation and travel costs)

We go out to eat once a week and to the sauna/swimming pool once a month. ....

That’s all doable. People who save up 100,000 euros over 10 years either eat at home or earn really well (or both). That’s apparently how people do it (afford a house).

By the way, I also think that you shouldn’t have to go without for the "house," but should also “live” alongside it. What that concretely means has to be decided individually by each person. In my opinion, a house is consumption, not an investment. Financially, renters usually come out better in the end. In a way, homeowners are forced to save (pay off their mortgage) and therefore end up with more wealth (in practice). Still, financially it’s basically better to rent ... Anyway, I’m getting off track. You have to want a house and then cut back elsewhere (individually) (exception: rich people).