How quickly should one pay off a house?

  • Erstellt am 2024-04-20 21:24:56

ypg

2024-04-22 22:24:29
  • #1

Is that question coming from you? You are the one here who wants to predict that later everything will be regulated so harshly and patronizingly.



You don’t get full from stocks either.


Be careful not to postpone everything. Life is now, public transport runs now, and photovoltaic is current. What technology will play a role in 20/30 years, we do not know. 40 years ago it was life insurance, 20 years ago it was Riester and stocks, now it’s ETFs.

Unfortunately, I also grew up very materially (money is simply there, and those who don’t have it work even more or longer).
But fortunately everyone is the architect of their own fortune!
I think you have totally lost track and want to save just for the sake of saving. You are saving your life away. The fear of losing money can consume you. Hopefully, you also built a bunker in your basement to protect yourself from the worst case: namely, when the time comes that you finally enjoy life (and not just the positive numbers in your portfolio, savings plan, account), so you can live out the joy then in the basement.
The problem with the
is that at some point it can turn into an obsession.

You ignore the answers trying to make you understand that your life can take a completely different tightrope walk tomorrow due to illness or strokes of fate. To a place where values are not measured by numbers.

It is always prudent to be cautious when someone registers here shortly before the summer slump and presents "negative forecasts," first with a simple question, then later with an abundance of negative material and black-and-white thinking. Ultimately, this person achieves views or traffic by painting a bleak picture of our future or politics – first generally, then in the first person, then it becomes “we.” Whether consciously or unconsciously with the “fixed idea.”
 

Teryamy

2024-04-22 23:23:52
  • #2

I think with us there will also be the wish to retire at 63, just like current generations already have (and many from my grandparents’ generation are already retired significantly earlier).


A car MUST be a usable object for me, meaning I shouldn’t be afraid of scratches and dents in the parking lot (for example if kids in the neighboring car don’t pay attention). I do appreciate comfort, but on the other hand I also compare the car with the bike (e.g. in sleet) or public transport, and in that comparison all differences between cars actually fade. They are all exactly the same speed, all offer weather protection, air conditioning, heating, privacy. At the moment I am considering whether to switch the car (second car) used for 2x office days per week from a €500–1,000 small car (very old) to a normal compact class car (Golf, Octavia, Astra, etc.). For about €15,000 as a used car. On the one hand obviously a lot more comfortable, but on the other hand I only use the car about one hour per week (4x about 15 minutes). Spend €15,000 so I don’t get to work any faster or better, just differently!?


That can work at 1% interest. At 3.5% interest currently, you hardly beat the higher interest costs with 7% returns minus taxes, with high risk. Ultimately, I also see from experience over the last 20 years in my environment: No one (!) leaves their house or apartment. Yes, there may be individual cases. But in the environment of the respective parents in my circle of friends and acquaintances, everyone stayed in their houses and apartments, even though many certainly once planned to downsize when their children moved out. This is an idea some people might have at 30, but after living there for 25 years, 95% still stay there.


Why sharply and paternalistically? It is clear, Germany and the EU want to achieve climate neutrality. By 2045. There is nothing wrong with that. Climate neutrality 2045 also means that by 2045 no gas heating will run anymore (that is already law), that by 2045 no existing combustion engine cars will be driven anymore, and that by 2045 every house will have either district heating or a heat pump, or at least a high-temperature heat pump. And if we do not want infinite solar fields, we will have to build photovoltaics on roofs.


Yes, of course. That is liquid wealth that can be converted at any time and also in the smallest fractions into consumer goods like food, clothing, travel.


At the moment I do not want to further increase my debt, i.e. my personal leverage. Therefore, currently until repayment no photovoltaics, no heat pump, etc.


I also don’t really see where one could spend more money now. I already explained the car above. But also with the furniture, for example – we had picked out our "dream couch" for €4,000 and then thought, the kids will break it anyway. Instead, it became an equally large couch, but certainly much less durable, for under €1,500 from the internet. And the kids jump on it, climb on it with street shoes and chocolate fingers and I am fairly relaxed because the couch, like the car, is a utility object. At €4,000 I might not have this peace of mind. The same with the furniture, we once considered replacing our living room furniture. And now we are glad that the kids drive the Bobby-Car into the 15-year-old furniture and not into any expensive, new furniture.


It is telling that we are already shortly before the summer slump in mid-April. Climate change has already had quite an impact. These "negative forecasts" with the high costs for photovoltaics, photovoltaic storage, heat pumps, 100% e-cars, etc. are exactly the reality if we take climate protection seriously. Which I assume. What I support in principle as well. But I also see the follow-up costs, which will undoubtedly be enormous.
 

moHouse

2024-04-23 01:09:06
  • #3
I would also like to point out the contradictions from the opening post again. Unfortunately, the OP did not address this:



So far so good. He will get rid of the remaining debt in 7 years if they save 2,500 per month. But only if there are no vacations.

But then comes this sentence:


Huh?! Am I the only one who doesn’t understand this?

Then also these elaborations on absolute trivialities like buying store brands vs. branded products, whether he sometimes takes a taxi in the evening, how often the bus to the city runs, etc., etc. Meanwhile, he leaves out essential things (e.g., the year the house was built). The city is only roughly sized between 400k and 800k inhabitants. The area is not mentioned at all (although it seems to be very much in demand given the increase in value).

I stand by it. Strange post.
 

Tolentino

2024-04-23 11:05:04
  • #4
Forum-operated chatbot to generate traffic?
 

jrth2151

2024-04-23 11:47:59
  • #5

Exactly that. The house price is fixed and due to inflation, etc., the real costs you pay decrease. At the same time, the value of the house ideally increases. That means it is smarter to invest the money in ETFs than to pay off the house quickly, because the 100k debt remaining in 2040 is not comparable to 100k € today.
If we have another low-interest phase at the next follow-up financing, simply secure a good rate that runs until the house is paid off.

Of course, if it is only about personal security, owning a house and no longer having to pay rent/installments, then making additional early repayments obviously makes sense. But when considering the total amount of money over a lifetime, it is more sensible to pay off the house and invest the money you have left. Large companies do not take out loans without reason. It is the same thought process.
 

Zaba123

2024-04-23 13:41:25
  • #6
Exactly. Save what you can, invest it in ETFs, overnight money accounts, or fixed deposits, and decide after the fixed interest period expires or during the special termination period whether you want to fully repay the loan or continue saving. What must not happen is that you waste the money senselessly.
 

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