Is buying a house sensible in the current market situation?!

Well, I already calculated for you that if you move into an adequate apartment, you will lose around 320,000 euros within 15 years. Compare that with the 550,000 purchase price.

So 1,500 euros cold rent.

Or the 1,400 euros every month that you acquire from your "small house," which should even have a higher utility value than your apartment. The only costs for that are roughly 600 euros interest on the loan—but this amount also decreases over time. You may mathematically have the risk that the selling price might be lower than your purchase price—but as long as you live there, you really don't have to care about that, right! And since you have a civil servant, that is probably not very likely. And even if prices should fall and you want to move—then the replacement apartments will also have decreased so that you will relatively(!) lose nothing. But if prices rise and you move, then the value of your house should have increased as well and you will relatively(!) get something equivalent again.

Gone will only be the incidental purchase costs with each move.

From the feeling, when it comes to so much money, one would want to have a tangible added value. And you don't just want to have to make compromises. Nothing against your idea, but hanging strollers from the ceiling...? I wouldn’t spend half a million euros on that...

Let's take the next 30 years, you will probably spend at least half a million euros on your apartment.

Either way.

In one case, it will still belong to the landlord afterwards (an existing apartment, a new buyer will hardly buy it for fun and won't want to raise your rent), in the other case to you ([RH]).

But you will pay the half million.

Either way.

Only in one case, as a retiree (so after these 30 years), you will have quite a hard time keeping such an apartment as a tenant in that price range. Not necessarily as an owner. If necessary, you sell the [RH] and just get a small, age-appropriate apartment. Please, at least you then have the choice and ownership. So the cash for it! But not as a tenant, then you have nothing at all.

And I still strongly suspect that the value of the [RH] would probably exceed that of your apartment overall. At the moment, you have to go to the basement to get your bike or the stroller. You wish for a garage in front of the door, okay. But a bike box is still better than lugging the bike up several flights of stairs. And leaving a stroller in the hallway is the lesser imposition than getting it up from the basement. But if you enjoy that, you can still carry such items to the house basement, you still have that freedom.

If all this is so important to you and you want a detached house close to the city with a small garden, then we’re no longer talking about half a million but rather about three quarters of a million or so.... and you won’t be able to manage that.

You know, I don’t know anyone who didn’t have to make compromises when buying a house or apartment. Really no one! You would be the first to succeed at that ;)

From the feeling, when it's about so much money, you want to have a noticeable added value. And you don't just want to have to make compromises. Nothing against your idea, but hanging a stroller from the ceiling ...?! I wouldn't spend half a million euros on that...

Very interesting. I have one of my best friends, also born in '87, who now lives in Osna. I suspect you grew up in the countryside? Because I have been having exactly the same discussion with him for years.

What would half a million be worth to you? Ask yourself this question and see where it exists. Certainly not in Osna – more like towards Bad Essen, Dissen, or something like that. That is simply the price to pay for the city. In rural areas, you can get really cool houses for 500k. But you probably don't want to go there and simply have to swallow the toad. Either buy or leave it.

No one can make the decision for you. What is hard to argue away is that even with absolutely constant prices over the next X years, you are building wealth through forced repayment for amortization.

Very interesting. I have one of my best friends, also born in '87, who now lives in Osna. I suppose you grew up in a rural area? Because I’ve been having exactly the same discussion with him for years.

What would half a million be worth to you? Ask yourself that question and see where you can get it. Definitely not in Osna – more like towards Bad Essen, Dissen or something like that. That’s simply the price you pay for the city. In rural areas, you can get really cool houses for 500k. But you probably don’t want to go there and just have to swallow the toad. Either buy or leave it.

No one can make the decision for you. What is hard to argue away is that even with absolutely constant prices over the next X years, you build up assets due to the compulsion to save for repayment.

No, I grew up near the city. At the moment, moving to the countryside is not an option (who knows what will happen in 3-5 years). The wish would be a property with a garden for around 500K, right (and in a top location – one can still dream, maybe you get lucky). For an almost dream house (where there are few compromises), I’m also happy to spend 600-700 euros. I find the ratio to a terraced house (500K) financially poor.

From the feeling, when so much money is involved, you want to have a noticeable added value. And you don't just want to have to make compromises. Nothing against your idea, but hanging a stroller from the ceiling ...?! I wouldn't spend half a million euros on that...

You always have to make compromises unless you have unlimited money. For us, the compromise is to move farther away, work a lot from home (which again brings compromises in the floor plan) and foresee many driving services for the child. In return, we get a modern house with a garden, some distance to the neighbor, and on the edge of town at a price for which I could at best get a 3-room apartment in a block of flats here.
If you can afford the 600-700 thousand euros and are willing to pay it off for so long and so much... go ahead. Then you shouldn't settle for the terraced middle house. But you should also be realistic about whether the houses you have in mind really fit the budget and are available on the market. Relying on luck is a bad basis for decisions of this magnitude.