Problematic prices in the south of Munich

  • Erstellt am 2021-09-04 21:11:44

letten123

2021-09-04 21:11:44
  • #1
Hello everyone,

we have been considering for some time whether we should buy something or continue renting. Our problem is that we live in the [“Speckgürtel”] of Munich and want to stay here for family reasons.

The second child is on the way, so we need either a 4-room apartment or a semi-detached house. Rents are rising to unpleasant heights; a corresponding apartment is not available for less than 1600,- warm, renting a semi-detached house or a small terraced house not below 2000,- EUR.

All properties we have seen so far cost between 750,000 and 850,000 EUR.

We still have 28 (man) or 29 years (woman) until retirement, and fortunately I currently earn about 5500,- net, my wife will soon be out of work initially (or receiving 800 EUR parental allowance for 12 months). Child benefit for 2 children is not yet included. I assume that our joint net income in 2-3 years will be about 7500,- EUR.

We currently have almost no equity, which has specific reasons. Since the beginning of the year, I have been saving 1200 EUR monthly in an ETF, which works fine; 1500 would also be possible. Our current warm rent amounts to 1200 EUR.

How do you assess this situation? On the one hand, prices are incredibly high, but I do not expect a "bubble" to burst soon. Paying rent every month is also not ideal.

Is it true that banks accept a rate of about 1/3 of the net income?

Thanks for all opinions...
 

HilfeHilfe

2021-09-04 21:20:02
  • #2
Hello, 850k with €6,200 without equity is quite a figure at first. Why don’t you have any equity and why are you saving in ETFs and not in a savings account?
 

letten123

2021-09-04 21:34:12
  • #3
Studied twice and now trying to pay off student loans as quickly as possible. So now basically at zero. With a savings account, the saved money loses value, as the interest rates are far below inflation. My ETF portfolio is doing well; it’s up 12%, and it consists of rather conservative and less speculative ETFs. Currently, there is just under 15,000 EUR saved in it.

We would probably find something here for 750,000 or 800,000 as well. But that doesn’t really make it much better.

Also considering whether it might be better to continue renting, keep it as low as possible, and save as much as possible. Actually, we only need a house or large condo for the next 20 years, as long as the kids are around. After that, something small would do— the question will be whether even a 3-room condo will cost 1.5 million by then... But nobody has a crystal ball.
 

CC35BS38

2021-09-04 22:45:12
  • #4
That will hardly be possible. You are exceeding the 110x net rule, without equity it won’t work, you are too old for that and the area is too expensive. And with those amounts, 15k in the ETF savings plan won’t help.
 

sub-xero

2021-09-05 06:53:44
  • #5
Are you serious? Saving in a savings account???
 

Oetzberger

2021-09-05 07:01:16
  • #6
Investing 100 percent in ETFs is somewhat risky. How about direct investments in well-diversified individual stocks? The more capital that is globally invested in ETFs, the greater the risks of this otherwise very attractive form of investment.
 

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