How to afford building a house and buying land today?

  • Erstellt am 2019-06-12 21:52:11

Egon12

2019-06-14 09:33:22
  • #1
I mean, in [Spiegel] there was a comparative calculation on this topic that concluded in the end that building has never been as cheap as it is today. Just three food for thought (salaries in the 90s, interest rates, construction costs)

Hardly anyone pays for a house out of petty cash or within 10 years; a house is simply a lifestyle commitment that you either dedicate yourself to or you rent.
 

Zaba12

2019-06-14 09:44:35
  • #2
Stupid question, why are we discussing 100% financing here? Neither the original poster nor the majority of participants here finance at 100%. Anyone who does should be aware of the consequences under certain conditions.

And those who build with a general contractor on their own land (bought from the municipality) basically have no ancillary purchase costs. Incidental construction costs are part of the new build and must of course be paid for by the new buyer.

Anyone who buys from the developer and possibly also a real estate agent will naturally not see any profit upon sale for a certain period of time (with 100% financing). Serves them right if they buy like that and don’t continue searching or don’t want to invest time in reasonable solutions.
 

face26

2019-06-14 09:49:07
  • #3


That is not heroic, that is normal. If you were only allowed to buy a property if you could pay for it in cash, we would have an even worse ownership rate. Besides, that’s how our economic system works. No company (except individual small businesses) can do without loans. A property has value to back it up. What do you think rents would be like if every rented apartment was financed only with equity? Don’t get me wrong, I am very critical of 100% financing and above, except in justified individual cases. But the idea that rent goes to the bank, no freedoms, and coercion, etc., is exaggerated fear. But as I said, everyone can do as they please.
 

berny

2019-06-14 09:50:46
  • #4


We even had ours for 20 years
 

Fleckenzwerg

2019-06-14 11:04:03
  • #5
With my first post, I am also speaking up here. We are currently dealing with home financing as well, and for us, it is the first time that we are taking on debt. On the premise that the financing is permanently affordable and paid off by retirement: In my opinion, it is also about the inner attitude towards it. The topic has already been mentioned, the good feeling of owing no one anything, which is given up when you sign a loan agreement. The alternative would be to inherit (unlikely), win the lottery (practically impossible), or rent forever. The possibility of buying property cash with the equity saved up by retirement age might exist, but 1. much less/slower equity is built up through rent payments. Sure, you can live modestly and pay low rent, but is that what you want? Especially in the active life phase of 30-60?? 2. you don't want a house only in your mid-60s, but NOW. You have to realize that if you want to live in an equivalent way to owning a home as a tenant, you don't pay off your own house, but your landlord's house. And every euro of cold rent is gone forever. When you rent, you don't owe anyone money, but there is the same risk that you might have to move if you can no longer afford the rent at some point. With a home, you at least get the proceeds minus the remaining debt at the bank. Rent paid until then is gone. Or the landlord suddenly claims personal use or renovates some nonsense (happens often enough) and justifies a hefty rent increase. So rent is also a form of dependence. I think this is a very important point that is often forgotten. Just today on the train, I read a few passages in a guide that helps to not see the thought of loan debt so black. You enter into a contractual relationship with the bank. Both contracting parties have rights and obligations. You do not become a serf to the bank. The bank lends me a huge amount of money!! The consideration is that I repay the money within a reasonably defined time frame, plus a bit on top. Consider it a partnership on equal terms; do not put the bank on a pedestal where it looks down on you with little appreciation. This equal-level perspective is already valuable during the loan discussion; the bank is also interested in a good deal. And if you are lucky enough to have sufficient equity, that also opens up some room for negotiation, not just regarding the interest rate. It is often acted as if you are making a pact with the devil. But it is entirely legitimate that banks want to earn something too. Of course, there are also examples where the bank is in a very advantageous position, for example, if it is the only one owning a row of properties that are also in a desirable location. If you then cannot afford the high prices, it is neither the bank’s fault, nor yours. The housing market (market = supply/demand) there is simply starving. In this case, politics should intervene and provide more affordable housing. It is also clear that this does not help you at that moment. I just want to say that you cannot hold the bank responsible. Because if I can sell something for €1000, I will not voluntarily sell it for €600 or €800. This has become longer than intended. I just wanted to contribute my thoughts and views (which I expressly do not consider universally valid!).
 

Kekse

2019-06-14 11:07:26
  • #6
But in the end, you probably didn’t have to argue anymore about who gets to go to training today
 

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