Report: Building a house as retirement provision? No way!

  • Erstellt am 2019-02-03 11:58:08

Zaba12

2019-02-06 09:38:39
  • #1
I can’t manage that. With maximum special repayments, I’ll be done by 51. But well, no inherited plot, hardly any own contribution, no inheritance, 21% equity, and fairly high quality, so expensive to build.
 

Zaba12

2019-02-06 09:47:45
  • #2

But you can't tell me that YOU earned only 1/3 of your current salary 21 years ago.

Also, a statement like "...the interest rates were higher and the construction costs were lower" doesn't make it any better. For us, 25 km further out in the countryside, a terraced townhouse on 150 sqm of land costs €300,000 including incidental construction costs, bare without any upgrades.

That is 600,000 DM which in your case would be 2.5 times as much. I can't remember my parents earning that much less 21 years ago.
 

haydee

2019-02-06 10:22:36
  • #3
Well, in the metropolitan area it would get tight to pay off our house by retirement

So 15 years quite relaxed
Vacations are still possible. We are drawn to the far north

It is clear that there will be a backlog of renovations in 20 or 25 years. Everyone has that whether the loan is paid off after 5 or 25 years. The former has more opportunities to build reserves. Whether he does that or prefers to travel 5 times and buy champagne instead of sparkling wine is another matter
 

haydee

2019-02-06 10:31:39
  • #4
When it comes to land prices, we live in a hole. Unexplainable to me.

Within a radius of 20 km, prices triple and developers sell terraced houses with basic fittings for about €2,500 per sqm.
 

Nordlys

2019-02-06 10:41:03
  • #5
My salary in 1997: 72 thousand gross per year. DM. Now it is 73 thousand Euro gross. Karsten
 

chand1986

2019-02-06 11:02:29
  • #6


And what does that tell us? Measured against 2% inflation and 1.5% productivity growth, that is fully within range. 3.5% growth over 22 years brings that - actually even a bit more.



If you calculate backwards, you end up, as Karsten’s example already shows, at under 1/2. If that was not realized by many, they did not sufficiently share in the progress.
 
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