It doesn’t matter, you will never always agree, it’s all way too individual. Later on you write "We all agree that..." and personally I have to directly contradict you on almost all points
Contradiction is okay. I’ll try to respond to what you wrote.
The risk is not determined by the purchase price, but for me the only risk is the resale value in case of a disaster. €500,000 in the middle of nowhere might be unsellable, in Munich a risk-free bargain. Other risks depend e.g. on the job, but not on the value of the property.
By “always a risk” I didn’t mean only the value of the house... but rather the overall situation. Illness, job loss, divorce, pressure, etc...
Furthermore, your comparison between the middle of nowhere and Munich is somewhat moot. Because if I could buy a house today for €500,000 in Munich, there is a reason. Is there a garbage facility planned on the neighboring plot? An airport planned opposite? etc etc... In such cases, resale, despite a bargain price, is not simply quick and easy. So, there is always risk. Or you are, like I personally did, very lucky with the property and bought absolutely below value. But I’ll leave those cases aside here.
An unfair comparison. How about a 2-room rental apartment vs. a 2-room owner-occupied apartment? There are also people who don’t want or need a garden. I have a self-made millionaire in the family who also rents.
Please don’t overlook what I wrote... Because I wrote: We all also agree, basically
or most here in the forum, that living in a house, if you can afford it, is more fun than living in a 2-room apartment under the roof?
My statement basically referred to the majority of forum users. And I hardly believe that more users here want to live in an apartment than in a house.
Furthermore, I don’t believe a self-made millionaire voluntarily looks for a loft apartment and sweats like a pig in summer and freezes like heck in winter.
No, because we will never agree on any numbers concerning household management. One example: Our car is €250 all-in and we also shop cheaper. And suddenly there is €500 more available for a property. Oh, here you can argue for a very long time without agreement.
Well, it is indeed tedious to discuss/argue over individual items... But when I hear €250 all-in for a car, I become suspicious and suspect some creative accounting. But of course I’m not sure. What about reserves for repairs, wear and tear, winter-summer tires, air conditioning filter changes, inspections, a possible accident with deductible, etc. etc. So €250 all-in is very, very optimistic.
Furthermore, three people eat for three people. Sure, you can shop cheaper... But it can also be that you have even a bit less available than I mentioned. Then the calculation fits again.
So, I give numbers here, but I don’t mean them down to the last cent. That’s not possible anyway, since numbers differ everywhere. BUT the order of magnitude is interesting.
If someone earns €4k in Munich with wife and child, costs are different than if he earns €4k in Chemnitz with wife and child. That’s clear. But one can toss out rough numbers... Along the lines; everything is paid and then we have €500 left over in Stuttgart. Others have €300 left over in Leipzig, others €1500 left over in Hamburg etc...
First, you’d have to agree on a calculation basis for what “at the end of the month” means. Are vacation and reserves already priced in? If yes, you could even build comfortably with €1 surplus. Large maintenance measures don’t occur at the start, a new car is already fully priced in with your €500 all-in. So what could happen? I have NEVER in my life spontaneously needed a 4-digit sum anywhere.
By running costs I meant all monthly payable costs including property tax, broadcasting fee, insurance, car loan and insurance etc... But basically we can agree on something. No problem.
So, e.g., everything included except reserves for the house, extra retirement provision and vacation.
And to your question what could happen that you immediately need a 4-digit sum... Well, you also never lived longer in a house before. That can happen quickly.
Then there are several examples for which you might need it quickly: (please no debate about why, what for, etc. These are only examples) - Daughter wants to go on a student exchange to the USA - Someone wants to buy a MacBook Pro - Someone wants a fireplace after all - Someone wants to buy a trailer to take garden waste etc. to the recycling center - Back taxes - Washer and dryer break down at the same time - On vacation you’d spontaneously like to do a diving license with the family
So, I can think of dozens of things for which I’d spontaneously need a 4-digit sum.
And reserves should be formed. Even if the new house doesn’t have to draw on them at first. You form the reserves for the period when it happens. So, 5-10 etc. years beforehand.
Are vacation and reserves already priced in? If yes, you could even build comfortably with €1 surplus.
Sure, if you don’t live anyway, i.e. have no friends, have no spontaneity and don’t need to have fun, then you can live perfectly with €1 surplus forever in the house. But that is not my way of living.
But again here... to each their own.
Tassimat, this post is not meant as a dig against you or your opinion! I just sometimes phrased a bit cheekily. No bad feelings here.
Cheers