Private retirement provision and free saving alongside financing?

Actually true. But: Calculate further into the future. The tenant pays rent for another 30 years after retirement age, while the owner lives "rent-free," well, almost.

Perhaps also part of the bet on a long life without (Guthaben-) interest rate risk.

I don't want to make a case here for building a house or for renting.

However, I think that the tenant, with the necessary self-discipline, should potentially have more capital available in the long run than the homeowner.

Basically, everyone has to decide for themselves where the journey is headed. But the fact is also that I (for myself personally) am of the opinion that the higher quality of life, which undoubtedly comes with building a house, cannot be measured in money.
That is all a personal attitude and, as always, mostly relative.

As of today, I certainly cannot imagine leaving our descendants a rental apartment where, apart from the savings book, there are only 2-3 souvenirs to take with them....

VG

True, actually. But: calculate further into the future. The tenant pays rent for another 30 years from retirement age, while the owner lives "rent-free," well, almost.

Maybe also part of the bet on a long life without (credit) interest risk.

Of the 218,000 capital, the tenant can withdraw 800 euros every month for 30 years, or alternatively pay the dynamic rent for another 10 years... or simply emigrate to Thailand and build a palace there.

But the theoretical calculation is also pointless, as there are far too many unknowns. I do not want to dispute that it is possible to actually be financially better off with building a house in a very specific constellation, but that is probably more the exception than the rule.

However, this was also about saving IN ADDITION TO the home financing and not INSTEAD of it. That is a completely different situation.

Ok, thank you very much for the explanations, it all makes sense to me.

I think it really depends a lot on the location and other conditions one brings along.

Because we practically got the plot gifted to us, there is already a big item taken care of that otherwise one would first have to be able to afford. And especially the plot is simply worth its weight in gold for us. Last week, a house was sold on the neighboring street, 160m² living space, 950m² garden, 700,000€. The house was from the early 60s and the only new thing was an oil central heating system from the year 2000. It is strongly suspected that the house will be torn down and something new will be built. If that is the case, about 735€ per m² of land was paid, compared to a benchmark of 230€.

We thought long about whether we even wanted to build directly next to my parents, but the security due to the location of the property and especially the great location then made us decide to do it, provided we create some physical distance from my parents. And since prices for a 50,000-inhabitant town are currently skyrocketing like this, building a house would not have been possible for us at least for now if we were looking for a plot ourselves. And regarding the location, we wouldn’t have been able to afford anything anyway. That would have been a plot 15 minutes from the center by car, no public transport connection, and so on.

Therefore, in our case, I actually expect that the property should be able to be sold at a profit or at least without loss at some point. But that is not the reason for us why we even want to build a house, but simply the fact that then you have your own domain, where no one annoys you, no neighbor stomps above you or turns the TV up too loud. That will probably be taken care of by the kids instead.

In this respect, I actually assume in our case that the property should be able to be sold profitably or at least without a loss at some point. But that is not the reason why we want to build a house at all; it’s simply the fact that you then have your own domain where no one annoys you, no neighbor stomps above you or turns the TV up too loud. The children will probably take care of that instead

It is not the house that "possibly" increases in value, but only the location. Therefore, this aspect does not belong in the discussion at all. This applies to only a few builders and is very speculative.

Where do I speak of a house? I meant and wrote property and that does not only mean the house...