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

For me, it currently looks more like this: You started your own business, showed the right instinct, and suddenly you're showered with money in a short time. Of course, that is an achievement that deserves recognition, but it doesn't have much to do with the "tough penny-pincher" image you present here, does it?

Oh, how nice that would be unfortunately I have to work hard and a lot for my money. 70..80 hours a week at the moment..

: Sorry, I didn’t mean to put you so much in the spotlight. Your example is basically interesting because there is a lot of equity capital in absolute numbers... and of course because you stand out here in the forum as a vehement advocate of high equity ratios.

Briefly on your answers:
- Feasibility of financing --> Certainly necessary on a case-by-case basis, but that does not lead to a general recommendation for "everyone"
- Self-discipline --> I assume it, it is enforced by the debits. Nice if it doesn’t hit you cold, but nothing more
- Loan-to-value --> I have written a lot here especially on this point. 110% is usually expensive compared to the saved waiting time, below 100% brings little or is even counterproductive, if you have to save extra for it first.
- Better equipment --> Spending more money is always possible, but in principle it is the same as "feasibility"

I classified the book only based on the title, there are quite a few such works. Whether owning a home is really equivalent to wealth building, in the sense that authors of such books understand it, is a discussion in itself.



To what extent can you agree with Steffen? You both have saved for a long time and now have a high equity ratio – I’m genuinely happy for you! But just because you did it (accidentally or intentionally) doesn’t create a recommendation for third parties. That would require objectively tangible arguments.

- Paying less money for the house thanks to lower interest rates? Doesn’t work due to rising construction prices combined with lousy interest on savings (we are still talking about today’s situation, right?)
- "Better sleep"? In hindsight it’s easy to talk yourself into it (I don’t mean that badly!), what you don’t know, you don’t miss. But again: Just because it turned out this way for you and you don’t regret it afterwards doesn’t create a recommendation for others. Hans Müller might currently be totally unhappy in his worn-out rented apartment with noisy neighbors and later regret not having built after all...

What exactly was/is the (intended) effect that would also benefit others?

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

I don’t see "nonsense" in my statement. "Those who prefer to study just have to accept building later OR having less equity." That’s exactly the question VanBen is about. Instead of boasting about your abundant equity, I would appreciate it if you would refute the content of his table. Otherwise, apart from "a better feeling with more equity," I haven’t read any other arguments so far?

I don't mind having a lot of equity either, but if you have to live with your children on the 5th floor for 5 years because of it, it's not necessarily a winning move. Houses are supposedly just money pits anyway - so I'd rather do it in a way that benefits me (and my children).

- Paying less money for the house thanks to lower interest rates? Doesn’t work due to rising construction costs combined with lousy interest on savings (we’re still talking about the current situation, right?) - "Better sleep"? Looking back, it’s easy to sugarcoat it (I don’t mean that badly!), what you don’t know, you don’t miss. But again: just because it worked out that way for you and you don’t regret it in hindsight, that still doesn’t constitute a recommendation for others. Hans Müller might currently be totally unhappy in his worn-out rental apartment with noisy neighbors and later regret not having built after all… What exactly was/is the (intended) effect that would benefit others as well?

I can only speak from my personal experiences, like everyone else here. But I can also question your supposed arguments in reverse! Just for example: Just because you (or whoever with little equity) can sleep well with their high debts, that’s still no recommendation for others! Where exactly is/was the effect that would benefit others as well? (and – houses built with a lot of equity have the advantage, in a worst-case scenario, that when selling you’re at least debt-free, if not better…)

Please don’t feel attacked. Of course, you can only share your own experiences, and in many ways that can be interesting and instructive for others. But here, it’s about recommendations for action regarding equity capital, and in that respect, no one is helped by reading "I just did it that way," or how do you see it?

As for my "apparent" arguments, I’m happy to be corrected. That’s why I’m typing here like crazy. The topic interests me.
But to answer your counter-question: The effect is that I get into my own home faster and can participate in the associated quality of life. Being able to sleep well with debt is (unfortunately) a prerequisite for that; otherwise, you wouldn’t need financing, and the discussion about equity capital would be obsolete.

Edit: I have also written something here on the topic of "distressed sale." This "protection" is expensive and (presumably) at the expense of other securities for you as well (for example, you currently don’t seem to have reserves for the increasingly expensive children, if I interpret your remark about it correctly).