Special repayment, saving or consumption?

What does "full risk" even mean?!

For the construction, six-figure equity went into the house. Every month, a significant part of one's own economic output flows into the house. Putting 10 or 20K€ into the depot is not "full risk," but the beginning of a much-needed diversification. But everyone has to assess that for themselves. With 0,x interest rates, I would prefer not to repay at all; inflation will take care of the rest. I have posted a calculation example with daily allowance here before; it is still valid.

Six-figure equity went into the house during construction. Every month, a significant part of one's own economic output flows into the house. So putting 10 or 20K€ into the depot is not a "full risk," but the beginning of a desperately needed diversification.

I'm not even talking about the first 20K€ in the depot. The risk in absolute terms is still manageable there, and there should also be some reserves on the overnight money account or in the bank account.

However, if the reserves continue to grow, the increasing reserves should actually be divided according to one’s asset allocation into equity (RK1) and bonds (RK3) shares. Objectively, the interest calculation must consider the RK1 share and RK3 share as a whole, and yet mentally I have a problem seeing larger sums lying almost without interest on the overnight money account while the loan is running.
The remaining option is to change the asset allocation and put more into RK3. But that also increases the risk.

If I manage to completely repay a loan through a special repayment (e.g., 3-5 years earlier than originally planned) and thus have a few hundred euros more available per month because the repayment rate decreases monthly, isn't that a great option??

My return on an investment fund helps me relatively little if my capital is tied up and I cannot access it.

Inflation calculations and other things don't help me at all either If I have 400€ more available to invest in children, consumption, or other things, a completely different consumption/lifestyle is possible here.

Of course, this is totally individual to consider, so I don't see any right/wrong here.

My return on an investment fund doesn’t help me much if my capital is tied up and I can’t access it.

You are confusing something.

Nothing is tied up. Funds/ETFs can be sold at any time.
For example, after 10 years you could check if the stock markets are doing well and make early repayments on the loan. If the funds are performing poorly, you let the loan continue and review it year by year.
Or in good years, you withdraw money from the portfolio and make extra repayments; in bad years, you put more into the portfolio and buy cheaply. This option is significantly more flexible over the term.
Mathematically, you would likely be finished much sooner and have the 400€ for "consumption" earlier.
If something comes up (long-term unemployment/disability insurance), you can also draw on it at first. The house is not immediately at risk because you can continue making the payments.

The money for extra repayments, on the other hand, is simply gone. A reversal of the extra repayment is not possible, and increasing the loan in case of disability or unemployment would probably also be difficult.

You are confusing something.

There is no binding commitment. Funds/ETFs can be sold at any time. For example, after 10 years, you could check whether the stock markets are doing well and make special repayments on the loan. If the funds are performing poorly, you let the loan continue and review it year by year. Or you withdraw money from the portfolio in good years and make special repayments, and in bad years, you invest more in the portfolio and buy at a low price. This variant is significantly more flexible over the term. Purely mathematically, you would be finished much earlier and would have the 400€ for "consumption" sooner. If something comes up (long-term unemployment/disability insurance, etc.), you can also live off that for a while. The house is not at risk initially because you can continue to pay the installments.

The money for special repayments, on the other hand, is simply gone. A reversal of the special repayment is not possible, and increasing the loan in case of disability insurance or unemployment benefits is likely difficult.

Then let's strongly hope for you that you can easily withdraw your ETFs after 10 years without a crash or something similar.

The longer the investment period, the higher the return. If a stock market crash occurs (or for example, Corona), you of course have to be able to ride it out for a few more years.

You never have the option to quickly say, "I'll just have it paid out" – that involves a lot of risk.

Furthermore, you only have a certain percentage of special repayment allowed per year. I can't say, "I'll have my 10k paid out and repay everything at once with a special repayment." By doing so, I would lose valuable years, which means I wouldn't be able to make special repayments on my loan at the desired time.

I also value diversification a lot – however, that is naturally not possible for many if a correspondingly high installment must be paid. In that case, you can invest at most 100-200€ per month in ETFs. I would definitely prefer, however, to put a significantly higher amount into special repayments in order to be more flexible with monthly expenses in the future.

the consequence or also prerequisite in house construction, everyone can calculate and handle money. Therefore, the various strategies are all correct. Whoever cannot do it is out of the house and no longer writes here.