Savings beginner with questions about the plausibility of the "rough" plan

I never said that one should just recklessly go into debt because it would be resolved anyway through consumer insolvency in the end. The starting point of this consideration is always a decent, thoughtful debtor with generally suitable conditions who has fallen into financial difficulties through no fault of their own.

As for the "net wealth," you both assume that your house would bring in more from a sale than the remaining debt. But what if that doesn't work out? Prime location and environment as today - probably not an issue... but what about the typical single-family house in a small town in 10-15 years that would have to be sold within a month?

Moreover, it is not just about the mere decision whether to use already existing equity in the property financing or not. It is about the question of whether one is willing to save this first over 10 years (or more) and endure the financial burdens of buying a house WITHOUT being able to enjoy the benefits of the house during this time. Added to this is, of course, that above a certain level it wouldn't even be worth saving for so long (see calculations above), even if one does not end up in financial distress.

In short: "sleeping peacefully" is all well and good, but do I want to wait 6-7 years longer for my own home just because of a limited lifetime, in order to avoid ending up in consumer insolvency in the worst case (with higher probability)? Maybe some will still answer "yes" to that. I think there are other things on the mental "security list" that are much higher up, so that the money runs out long before (insurance, retirement provision, children's education, etc.).

We saved for more than 10 years... from early 20s to 35, and I would do it the same way again. I will be 36 when we move in. In the last years, we were able to live comfortably renting and enjoy life. We could also live well and didn’t have to think about what was more important. Money for the garden or vacation? We did not have the burden that a single-family house brings. Physical burden (garden, etc.) and responsibility for property should not be underestimated. In your mid-20s, you are usually still working on your career... by mid-30s, this often looks much better. You have found your place. Added to that is the effect of "learning to save."

Regards, Steffen

We saved for over 10 years.. from early 20s to 35 and I would do it exactly the same way again. When we move in I will be 36.

You are one of the few who can save well already with their apprenticeship salary. Most "would-be builders" I know finish their studies in their late 20s, have to repay BAföG, service student loans, the old car doesn't work anymore... Hardly anyone has equity, so I find the calculation interesting.

You are one of the few who can already save well with your apprenticeship salary. Most "would-be builders" I know finish their studies in their late 20s, have to repay BAföG, service student loans, the old car is no longer working... Hardly anyone has equity, so I find this calculation interesting.

Nonsense. During the apprenticeship, I saved a few DM + a few DM VML. At 22, I had finished my training and had a manageable income. On average, I saved about 10% of my income. Of course, without thoughts of a house yet. Those who prefer to study simply have to accept building later OR having less equity. I always find this argument a bit silly "but I first studied and couldn’t save"... so what? No one forced anyone to study.

Addendum: Many students I know... are really good at partying on the weekend and blowing the money (painstakingly earned alongside their studies). Then the next generation writes here in the forum, "But I studied and blah blah blah"

We saved for >10 years... from early 20s until 35 and I would do it exactly the same way again. I will be 36 when moving in. In the last years, we could live comfortably renting and enjoy life. We could also live well and didn’t have to consider what was more important. Money for the garden or vacation? We didn’t have the burden that a single-family house brings. Physical strain (garden, etc.) and responsibility for property should not be underestimated. In your mid-20s you are usually still working on your career... by mid-30s that often looks much better. You’ve found your place by then. Additionally, there is the effect of "learning to save."

Regards, Steffen

That is up to you and anyone else. I don’t want to persuade anyone here against their will to suddenly take on a property over their head. However, I see it like Simon_SH: Most people I know have studied and despite good jobs and corresponding salaries are first busy for some time paying off BAföG and loans, catching up on purchases that were previously financially impossible (e.g. starting a family ), and of course, they no longer have much desire for the small room in the dirty shared flat.
Of course, nobody forced them to study and even less did anyone hold a gun to their head to give them consumer goods, but these people are exactly the clientele who now ask themselves “Should I wait another 5-10 years to buy a house until I have >100k equity saved?”

Whoever in their early 20s has "just so" a bit of money over with no plans for the future and puts it aside (which I find remarkable (boring) at that age), gets used to that and one fine morning wakes up wondering where all that nice equity for building a house comes from, is certainly in a very different situation than the young family that wants a garden and fresh country air for their offspring.

And by the way: If I remember correctly, you are building something around 800,000; if you bring >20% equity for that and want to have saved about 10% of your net income within 12 years, you would have set aside 900 euros per month at 4% interest.
So either you really had well over 8,000 net per month since your apprenticeship, earned a higher average return than Warren Buffett, or something here doesn’t add up.

Edit: Sorry, calling it “nonsense” was rude, no hard feelings, please.

Anyone in their early 20s who has some money "just like that" left over without plans for the future and puts it aside (which I already find remarkable (boring) at that age), gets used to it and one fine morning wakes up wondering where all that nice equity for building a house comes from, is certainly in a very different situation than the young family wishing for a garden and fresh country air for their offspring.

Indeed boring. Boring with foresight and in a situation self-created. Everyone is the architect of their own fortune.

And by the way: If I remember correctly, you are building something around 800,000; if you bring more than 20% equity for that and want to have saved about 10% of your net income within 12 years, you would have set aside 900 euros monthly at 4% interest.
So either you have actually had well over 8,000 net per month since your apprenticeship, earned a higher average return than Warren Buffett, or something is not right here

Edit: Sorry, calling that "nonsense" was rude, no hard feelings, please.

The absolute numbers don’t really have significance here. My income has grown somewhat more than average. For that, I’m building somewhat more expensively than average. Over 12 years we certainly have saved more than 10% as well. But anyone else can do that too.

Book recommendation: The Millionaire Formula

Currently much talked about and hits this topic exactly. The trick to building wealth is NOT the amount of income, but the difference between income and expenses.

Regards, Steffen

PS: To afford 900 EUR, I would have to earn 8,000 EUR net per month? Well, I think you’re doing something wrong