Madness or feasible? :-)

It has nothing to do with self-pity (???), and how others finance is irrelevant to me.

The nominal interest rate is 1.29 / effective annual interest rate 1.30

Currently, we live in a two-family house, which is already like living in your own house, just without your own garden. The drivers are the risk of eviction due to personal use (which is rather unlikely because of various factors we know), and of course the usual "you can't do whatever you want." I really need to talk to my wife again regarding the purchase motivation(s).

If we didn’t have a child, to whom we want to provide a stable environment, I would stay here and continue to save equity (until we get kicked out or want to leave), as long as possible. Our warm rent is quite good compared to the now "matured" rental market (we have been living here for 5 years).

But these are the food for thought I hope to get from this thread. Thank you!

Self-pity (???) has nothing to do with it, and how others finance it is irrelevant to me.

The nominal interest rate is 1.29 / Effective annual interest rate 1.30

Currently we live in a two-family house, it’s already like living in our own house, just without our own garden. The drivers are the risk of termination due to personal use (which is rather unlikely due to various factors we know), and the usual "you can’t do whatever you want." I really need to talk to my wife again regarding the purchase motivation(s).

If we didn’t have a child, to whom we want to provide a stable environment, I would stay here and continue saving equity (until we get kicked out or want to leave), as long as possible. Our warm rent is, compared to the now “mature” rental market, quite good (we’ve been living here for 5 years).

But these are the impulses I hoped to get from the thread. Thanks!

First, you should really discuss your motivation. One thing is clear. Ownership entails responsibilities and immobilizes. Job changes etc. become significantly more difficult.

But I don’t understand the interest rate. If you got 1.29% for 20 years, that’s a great rate! To roughly compare rent with ownership regarding capital it is:

Cold rent versus paid interest. If the paid interest is lower here and the living situation better then you’ve made a good deal. You can ignore everything else. Aging of the property etc. Otherwise you’ll be thinking even more.

Whose idea was the house anyway?

Yes, that would indeed be a great interest rate. I had misread it. That would be for 10 years. For 20 years it is 1.89%.

Thanks for the tip. For simplicity, I assumed a 30-year fixed interest period. About 28 years repayment (without special payments, just the installment). I would pay about 130,000 euros in interest (interest rate 2.29 according to Immo(. That would come to around €380/month for interest by then. That is, of course, significantly cheaper than cold rent. Even if I play the perfectionist and add the now necessary costs for 2 term life insurances.

But can it really be that simple? *g*

The motivation comes from both of us, but it is not very strong due to the resulting responsibility. We are extremely head-driven. Sometimes I wish for more carefree attitude.

As I said, interest is one thing, (follow-up) costs for the property are another. You simply take the rent income from a rental property. By the way, I come to about €700 interest/month on €450k at 1.8%. I don't know how you come to €380. You probably divided the interest burden by the total months. Compound interest effect. Look forward to your property. The interest is fixed for 20 years and inflation-proof. You won't have to worry about rent increases anymore.

I had only divided the interest by the months. Thanks, that's right, compound interest can also work against you! The repayment rate would be €1400, at a 2.5% repayment rate. As I have read, the maintenance reserves are around €2-3. So about 400 (140 m²), that would be €1800 for the house. I need to think about that.

I only divided the interest by the months. Thanks, true, compound interest can also work against you! The repayment rate would be €1400, at a 2.5% repayment rate. As I have read, the maintenance reserves are around €2-3. So about 400 (140 m²), that would be €1800 for the house. I need to think about that.

No, compound interest works for you and not against you.