We have 300k EUR equity and a 500k loan. I should have rather bought a nice apartment with the equity and taken out an 800k loan :rolleyes:
Seriously: I claim in general... it is not a good idea to buy a rental apartment on credit if you are planning to build a house yourself! Whether it pays off or not... it is in any case a completely unpredictable risk. And I’m not even talking about problem tenants.
But everyone can do as they please. Just my personal opinion...
With an apartment in Munich, Hamburg, Berlin, etc., it might well have been worth it, right. FYI, I recently sold a multi-family house for 300,000.- that brings in over 50k€/a fully rented. For that, you can easily get the loan financed. What I want to say is, you always have to consider the individual case. If the balance is positive, it can always make sense, as you pay off the loan with the rent but still own the apartment to sell or use as retirement provision later. If instead you take out less loan now, you initially have similar disposable income, but later no apartment or retirement provision. Therefore, I would view the apartment positively. To what extent the rental income is secured and what additional costs might arise can only be known by the owner.
