It doesn't work without equity - experience!

For the risk, the equity ratio is completely irrelevant. Whether I have €500k in debt with €500k equity or with only €100 equity, the risk of losing the house depends solely on the income/expense situation. The invested equity is gone anyway and no longer counts at that point.

In the event of a necessary sale, it can make life significantly easier afterwards, but the house is gone either way. However, if I "hold on" for the first 10 years, I have exactly the same situation as if I had had more equity at the beginning.

I am sure the negotiating position with the bank, in case of emergency, is significantly better if the house is worth more than the remaining debt. That depends solely on the amount of equity. Keyword: interest-only period over a certain time, etc.

Or another option: in case of emergency, rent out the house to avoid losing it. I only consider that feasible if the interest burden is not too high. That brings us back to equity.

If the main earner fails, it makes no difference whether they serviced a €3,000 installment on €10,000 per month income or a €1,000 installment on €3,000 income. Both have a problem. However, the 60% financer can solve it more easily than the 100% financer.

Of course, this is all just my rough theory and I may be completely wrong. But that’s why we write here to read other viewpoints.

We chose the rate so that one can still get by even if one has no income. Which is almost unthinkable. Both of us also have disability insurance.

That only works if both incomes are close to each other. OR if you base it on the lower income. Who actually does that?

Even if you feel attacked... I stick to my opinion: 420k EURO without much equity and over 29 years... I would only dare that as a civil servant*. The income can't be huge, otherwise you probably wouldn't set up such financing.

* feel free to call me a scaredy-cat

Why can't the income be huge? From when does huge even start?

Without the corresponding income, you won't get such a loan easily.

Besides, you don't necessarily have to have 200+ m2 of living space. Some probably need it to maintain their status in society.

Oh, with over 200sqm you're just status-hungry...what a crappy statement...

Why can't the income be huge? When does huge even start?

Without the appropriate income, you won’t just get such a loan easily.

Apart from that, you don’t necessarily have to have 200+m2 of living space. Some probably need it to maintain their status in society.

Huge... significantly more than the average. Double... triple? No idea. So if you earn, say, 6000 or 10000 EUR per month, you can easily get financings of 400k 500k 600k EUR. Even without equity. But I ask: If someone with such a high income can’t save up equity, they are doing something wrong? Exception: civil servants for life with corresponding income.

With 220m2 you can put me in the status-hungry drawer. The big car also naturally marks me as completely status-hungry. An A6 is purely a status symbol. Technically, the Audi is comparable to a Kia. The only difference are 4 rings. No difference in material and equipment. Last year we were in Japan. Also just for the status. Balcony-country would have been just as nice and impressive. But Japan is better for status.

Seriously: there it is again... the German envy debate. Can’t you just be happy for other people? Especially those who earned everything themselves!

Seriously: there it is again... the German envy debate. Can't you just be happy for other people sometimes? Especially those who have earned everything themselves!

That's how I see it too.

Unfortunately, we also can't afford a 911 convertible. Still, we like this car and we have no problem if someone else parks such a chic toy in their garage.

In my opinion, everyone should be allowed to set their preferences as they like – whether a big car, a beautiful house, great vacations, or a combination of everything (just one or two steps smaller) is most important to me should be my decision and of little to no concern to others.

For example, we have also lived for the last 12 years in a small, cozy 2.5-room apartment with not even 60 sqm. But during that time we paid it off completely, which of course now helps us a lot in servicing the loan for the house.

Unfortunately, the motto "live and let live" is no longer very widespread nowadays...

Regards,

Dirk