Is our new building realistically financeable?

@ Crossy, HilfeHilfe and Zaba12

Yes, we saved up ourselves for the apartment. I know it’s hard to understand from the numbers without context how it pays off with the apartment paid in "cash" but there was no other way. House financing costs about 9-10% interest for us and no one here wanted to finance an apartment abroad for us, so we combined everything and paid. The focus was not on investment but on moral support/emotional reasons. And honestly, we are both satisfied with it. Yes, I admit the 240K has helped us a lot now but it is what it is :)

It would have been the same with us! 240k would now be 140k!

@ Crossy, HilfeHilfe and Zaba12 Yes, we saved up ourselves for the apartment. I know it’s hard to understand the numbers without context how the "cash" paid apartment pays off, but there was no other way. In our case, house financing costs about 9-10% interest and no one here wanted to finance an apartment abroad for us, so we combined everything and paid. The focus was not on investment but on moral support/emotional reasons. And we are both satisfied with that, I have to be honest. Yes, I admit the 240K helped us a lot now but it is what it is :)

There is no need for a reason or explanation for that. The money was not gambled away but invested. It's just that there isn’t enough to comfortably finance another property. That’s just how it is. You have to deal with it now.

don't know. without a house I wouldn't have saved 240k by 42 :) more likely consumed it

But that's not because of the house, rather due to a lack of discipline in handling money, right :)

Here's a small calculation example: An engineer starts at age 25 to save 550 euros monthly over 17 years. He invests the money in a broadly diversified ETF on the world and would have (at least in the last 17 years) achieved about 8% p.a. And bam, at age 42 (after tax and solidarity surcharge deduction), he has nearly 200,000€ on the clock. If he hadn't consumed the 3% salary increase each year but invested it additionally, it would already be 240,000€. No rocket science, as long as you don't believe Olaf Scholz...

I would just speculate a bit that you can buy the apartment in your home country later in the same way if you want to move back. Also that real estate prices increase and thus more remains from the sale of the house. If the apartment cost 240k, then you can buy a better apartment when you sell the house later! No one needs this double "burden" for a ridiculous 350,- euros!

That is the local standard rent but with a 5% increase in cold rent every year.

In which country is the house located? Does the rent increase by 5% in euros every year? Or in a local currency with corresponding inflation? Do the tenants treat it carefully, who takes care of it on site? I’m keeping my fingers crossed that no further regular investments will be necessary. Would selling the property be an option?