Purchase financing: how much equity (with the low interest rates)?

  • Erstellt am 2021-09-03 20:51:39

berny

2021-09-04 17:32:00
  • #1
Nussbaum is right; pay as little as possible upfront, and stretch the repayment as long as possible. From 2021 onwards, debts will be "inflated away" again. You seem to know your way around the stock market, so stay in. There is no easier way to make money in the long term…
 

HausTmMike

2021-09-04 17:32:33
  • #2
That's exactly how I would do it. And if you want a bit more diversification, I might contribute 20% equity + incidental costs. You are currently selling stocks at peak prices. At the same time, your 'retirement provision' portfolio remains solid. Then 10 years fixed interest at 0.65% and off you go.
 

dingsda87

2021-09-04 18:56:53
  • #3
Thanks for the input.

I think the hint about the cash reserve makes sense, especially when it comes to owning a house. I hadn’t really considered that.

That means out of the 300k, 26K equity, 17K additional costs, 60K to invest further, and 20K cash as a reserve. That leaves 175k to work with. Especially since the family will probably contribute something as well. I always play the poor sucker who's being drained by the family :D

I actually want to try investing in real estate as a capital investment. On paper, extremely charming.
 

hampshire

2021-09-05 16:47:26
  • #4
Since you apparently prefer investing in the capital market over contributing equity, take a look at the loan conditions with a broker and use just as much equity as you need to get an excellent interest rate. Ultimately, there are several good ways, because besides optimizing costs and returns, there is also the component of feeling comfortable, which you slightly mentioned. If you make the economically best choice but cannot sleep well because of it, you have made a bad decision. In the end, most people buy a house for themselves and their family because it is associated with a good quality of life. Consistently focusing on quality of life instead of economic efficiency or any house features and imposed quasi-standards is something I consider highly sensible.
 

dingsda87

2021-09-05 19:31:31
  • #5

Wow, thank you.
I probably only addressed this component rather unconsciously.
But really engaging with it actively makes a lot of sense. In the end, one could say, for example, 100% debt with 2% repayment would probably be economically best, but with 80 to 90% and 3% I sleep better.
Really thanks again for the push to rethink the topic.
 

Mitleser123

2021-09-06 07:47:36
  • #6
As many have already mentioned, as little equity as possible, as much equity as necessary to get a good interest rate from the bank.
 

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