How long have you been saving equity for your house?

Hello dear forum,

I was interested to know how long/how you saved for your house. Had it been decided for a long time that you wanted to have a house and did you save for it accordingly? Or did the desire come later? Have you always been frugal and put money aside, or were you earlier more of a spender? Did you specifically set aside an amount every month or always whatever was left over?

Sometimes I think we have wasted too much time (late studies that consumed everything saved until then) and building up a healthy equity cushion will probably be difficult (we roughly aim to build in 5 years, but probably won't have the massive equity) And then I wonder how it went for others. I suspect saving for a down payment for 5-6 years is rather short, but I don't know exactly :)

Best regards

May

Hello,

I think it also always depends on age... If you are now 40 years old, I would probably start sooner!

For example, we really put everything that is left consistently into a building savings contract at the beginning of the month. Additionally, about a year ago I started transferring money to a daily allowance account! In an absolute emergency (e.g. washing machine), I can also access it! At the end of the year, I then transfer 70% to the building saver.. I cannot access that until it is ready for allocation! You have to be very strict.

You can't say that in such general terms. We only had the additional costs and financed the purchase price. However, with us, it was only 252k loan for new construction / turnkey.

You don't have to save 465k equity, but the ratio of equity, net income, life situation, and loan amount should fit.

If young people with a desire to have children want to finance 10k equity, 5000 net per month, and 580k loan, I have a hard time (hypothetical example, but unfortunately not uncommon).

to build in 5 years, but they probably won’t have masses of equity

It sounds like with you, there generally isn’t much left over. Not everyone has to build!

We had little equity (only incidental costs for the land), but about 3 years before building the house we already financed the land so that part of the house financing was already paid off.
Paid-off land = counted as equity.
It’s better than leaving money in the bank at 0%, while land prices rise by 10% per year...
(The house financing only happened once my wife brought in a salary after a long study period)

The two of us had saved 130k over 10 years.

Never actively saved for a house. Bought the first condo in my early 20s and had a payment that was equivalent to rent – with the then homeownership subsidy, the apartment was paid off in just under 10 years. Then simply decided that a house would be nicer and bought a house – again with a payment equivalent to rent (and thus increased repayment) and the equity from the apartment. It went on like this. Meanwhile, this is house No. 3, which I will move into in mid-July.