How much reserve in addition to equity?

  • Erstellt am 2020-05-20 10:54:21

DaSch17

2020-05-31 12:11:06
  • #1
I simply do not understand the fundamental discussion about "emergency liquidity." From my point of view, you only buy real estate for personal use 1 to 2 times in your life. So why shouldn’t you consider all available liquidity in the financing plan?

A small example calculation with your numbers:

Cold rent 750 EUR
min. monthly savings 1,500 EUR - 2,000 EUR

Equity 120 TEUR

Assumed purchase price: 360 TEUR
Acquisition incidental costs: 40 TEUR
Kitchen: 25 TEUR

Mortgage lending value: 288 TEUR
Financing amount: 305 TEUR
Loan-to-value ratio: < 120 %

Interest rate: 1.20 % p.a.; fixed for 10 years (remaining debt after interest period ends: 208 TEUR)
Repayment: 3.00 % p.a.

Annuity: 1,067.50 EUR

Means for you freely available income after all costs: 1,182.50 EUR - 1,682.50 EUR

Of that I would then put 500 EUR per month into a company and/or private retirement provision.

The remaining roughly 700 to 1,200 EUR you can save every month again in a daily allowance account and thus have an “emergency fund” of 8.4 - 14.4 TEUR after one year.

So why do you need the "emergency liquidity"? By the way, there are now credit lines at savings banks and banks with a variable interest rate of about 5 % (works like an overdraft), with which you can cover temporary liquidity shortages without problems.

If you continue to save up to 170 TEUR (incl. emergency fund), you have to wait another two to three years... Who knows where the prices for condominiums will be then. In case of doubt, the loan-to-value ratio will be above the one calculated above despite more equity...

So in short: Look around and if you like a condominium and it fits the budget – go for it!
 

starrily

2020-05-31 14:09:40
  • #2

It's the same with us, condominiums around 800,000 are also not uncommon, and the penthouse is usually seven-figure...
 

bazinga

2020-06-02 13:53:17
  • #3
This is madness - and that for a condominium. I just checked the prices with the developer again. Apparently, there is still a terraced mid-terrace house with 120m² available for 455,000€ (near Mainz and Wiesbaden). And then a condo for 800,000€?
 

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