Problematic prices in the south of Munich

I tend not to speculate with my own house. The absolute nightmare would be if you still have a remaining debt of 500,000 and some kind of crash happens, and the property is then only worth half. Anyone who then cannot pay the installments would have to file for personal bankruptcy.

Now, I am certainly no financial expert as some here seem to be. Nevertheless, I like to remind that when we built our house at the time, a 1% repayment rate was standard because interest rates were just under 10%. The advertised sale price of our house was suddenly 40% BELOW the construction cost, and no one was interested in the house at that price; it was basically unsellable. Luckily, because in the following years, this changed significantly, and 10 years later I was able to choose the buyer at the desired price. Of course, it is probably very likely that prices will just keep going up and up... and yet, things often turn out differently; it remains a crystal ball no matter how beautifully and favorably it is presented or supported by calculations. The younger generation here apparently mostly only saw prices rise... therefore, I would always also consider the worst-case scenario once, and after that, you can still choose to realize it.

Expensive real estate without equity is always a kind of gamble. Therefore, I stick to my point of view that you should always have at least the incidental costs in equity.

Is it realistic to save up the purchase incidental costs before you buy? Is a property possible without broker fees?

For the thread, I have a soundtrack:

"I want it all" (and I want it now) - Queen

"You cant allways get what you want" - Rolling Stones

"Let it be" - Beatles

"Money" - Pink Floyd

"Plan B" - optionally Udo Lindenberg or Die Ärzte

"A better future" - David Bowie

"Happy" - Pharell Williams

Prepare yourselves, don't do it immediately. Your time will come.

Which properties have you looked at?
If I enter 800k as a limit on Immo..., I only get leasehold properties.
For that price, you can't get a townhouse within 50km of Munich for 800k.

With a property price of 900k, additional costs alone would already be 70k. You don’t really want to go into debt over 900,000€ based on your income??
So I see a 4-room apartment, and in 5 years with significantly more equity, you can reconsider.
So far, your savings performance, despite student loans, is not such that one would say you want to subordinate everything to owning a home.

It's basically already stated in what you quoted. Without equity, you get “roughly 110 times the monthly net financed (credit).”

This rule feels like a thing of the past by now.. above all, financings are concluded well beyond retirement age, even though a ban was introduced in 2016, right?

This rule feels like a thing of the past by now.. especially since financing is often concluded well beyond retirement age, even though a ban was introduced in 2016, right?

This "ban" is an urban legend. You just have to be able to continue paying the installment with your retirement income. But you would also have to pay the rent from that.