How to afford building a house and buying land today?

I just read through the whole [Thread]... Some parts are pretty tough stuff

What really annoys me the most is the argument that you surrender yourself to the bank through the loan. Huh?

I have entered into a contract with the bank, with all rights and obligations.
My obligation mostly consists of paying on time, otherwise the bank sooner or later makes use of one of its rights.
So what? Do you think a landlord doesn’t take action if you don’t pay?

That’s exactly what the whole contract is based on: I get money lent, can build a house with it. In return, the bank gets the money paid back to them piece by piece + interest, which reflects their risk that I might someday no longer be able/willing/whatever.

The bank can’t impose an increase on me through modernization or rent index, nor can it simply terminate because “personal use” has been declared.

So where the hell am I surrendering myself to a bank more than to a landlord?

Everyone can decide for themselves whether they prefer to “surrender” to the landlord or the bank. For my part, I immediately chose the bank and don’t regret it for a second.

I have now read the entire thread... Some parts are really tough stuff

What annoys me the most is the argument that by taking out a loan you are at the mercy of the bank. Huh?

I have entered into a contract with the bank, with all rights and obligations.
My obligation mostly consists of paying on time, otherwise the bank will sooner or later make use of one of its rights.
So what? Do you think a landlord doesn’t take action if you don’t pay?

The whole contract is based on this: I get money loaned to me, can build a house with it. In return, the bank gets the money paid back to them bit by bit + interest, which reflects their risk that at some point I might not be able/willing/whatever anymore.

The bank can’t impose an increase on me through modernization or rent index, nor can it simply terminate the contract because of "personal use".

So where the hell do I commit myself to a bank more than to a landlord?

Everyone can decide for themselves whether they prefer to be at the mercy of the landlord or the bank. As for me, I immediately chose the bank and don’t regret it for a second.

One puts oneself at the mercy of the bank when one finances beyond one’s income and chooses terms of 30 years. Renting is more flexible in that respect.

Well, arguing about it is a never-ending loop. Everyone has their viewpoint which they rightfully defend. But I know too many people in my circle who, mostly due to divorce, have to pay half the mortgage for the house, then rent for the new one-room apartment, and alimony on top of that. You just can't know what will happen in the next 30 years. You can ruin your life very quickly with such mammoth commitments.

And sorry if I press again, but with a loan of 400k and a repayment rate of 2.5% and an interest rate of 1.95%, I come to at least 110k euros in interest that I pay to the bank. For that money alone, you have to work a long time and can easily rent for 10 years. Our cold rent is currently 875 euros. New build, upscale equipment, and 102 sqm. I don’t have to think long about what I choose. And regarding security in old age, most sell their house when the kids move out because no one wants to live in the finished attic of their parents’ house, especially when the children are scattered all over the world for work and live their own lives. For two older people, a house is usually too big and too much work.

It used to be different, back then multi-generational houses were the norm. I think that’s great, grandparents downstairs, parents in the middle, and children upstairs. Dreamlike. Everyone helps and sticks together. Nowadays a house is just a status symbol that eventually becomes a burden. 200 sqm for the parents and one child (who will eventually leave too), and a huge garden. Whoever has the money, cool. Whoever doesn’t, better leave it, nothing lasts forever.

with a repayment rate of 2.5% and an interest rate of 1.95%, I come to at least 110k euros in interest that I pay to the bank.

Correctly calculated, it is approx. €75k in interest and not €110k. In addition, as an owner you have almost €110k in savings performance.
In the same period, you pay €105k in cold rent - so more than you pay as an owner in cold costs = interest. Do you also save the same amount additionally?
For the €30k you pay extra (without rent increase), I as an owner easily go on vacation every year.

I don’t know if I’m too stupid to understand this bill. Why does an owner have a savings performance of 110k euros and the tenant doesn’t? Is the money in your account or is it another fictitious performance caused by inflation and low interest rates?

And why should an owner save more than a tenant? That all depends on the monthly savings rate that is deducted from the salary, or am I mistaken? And that in turn depends on the salary and the saver’s willingness. I don’t bother with fictitious and theoretically saved amounts.

Correctly calculated, it is approx. €75k in interest and not €110k. In addition, you as the owner have almost provided €110k in savings performance.

If I enter these numbers into an interest calculator, it says: Paid interest after 29.5 years: 127k euros But I’m happy to be enlightened.

For the €30k you pay more (without rent increase), I as owner can easily go on vacation every year

You can set aside the 30 thousand for maintenance and renovation. A house is not a capital investment but a money pit.

In the same time, you pay €105k cold rent - so more than you pay as an owner cold = interest. Do you also save the same amount additionally?

That’s not even enough.

I’ll tell you honestly, just for house costs and interest, I could easily live in a rental in our area for 40 to 50 years (800 - 900 cold), wouldn’t have to restrict myself, and could even save money for a luxury motorhome, then drop dead without any stress, no work, and was my whole life master of my time and master of my money.

I don’t know if I’m too stupid to understand this calculation.

In your previous post, you mixed up durations. Nordanny’s calculation is based on a term of 10 years.

Why has an owner saved 110k euros and the tenant hasn’t?

Because they repaid at 2.5%!

And why should an owner save more than a tenant?

Because as a tenant you basically pay for about 1% repayment of the landlord, which then is no longer available for your own savings. Additionally, the interest costs decrease month by month and convert into repayment. Principle of an annuity loan.

When I enter these numbers into an interest calculator I get:
Paid interest after 29.5 years: 127k euros

Exactly, 127k for 30 years of living. In your other post, however, you could only last 10 years for that money.

Honestly, just for house costs and interest I can easily rent in our area for 40 to 50 years (800 - 900 cold)

1.95% of 400k is 650€ per month in the FIRST month. Every subsequent month you pay less than 650€. Principle of an annuity loan.

For comparison: 850€ * 12 months * 29.5 years = 300,900€. Here is the comparison to the interest paid from above: 127,000€ interest.

[..] live in rent [..] don’t restrict myself and can still save money for a luxury motorhome, then fall into the grave and had no stress, no work and was my whole life master of my time and master of my money.

Correct. But you paid for this flexibility (300,900€ - 127,000€) and at the end of the period you simply have no house. Even if you let it decay, after 30 years it is worth more than your rented apartment. Your landlord will not renovate your place while you live there either.