Special repayment, saving or consumption?

That is exactly why I pay off so aggressively. I don’t want to have debt because no one knows what tomorrow holds. I don’t want the financial pressure, I don’t want to be dependent and have to hope that everything keeps going as it has so far. And just because I have no debt, it doesn’t mean I don’t have or am not building assets. The house was recently valued at just under €600,000, compared to which there is less than €45,000 remaining debt – I think you can be more than satisfied with that. Additionally, I have been investing in an ETF savings plan for years and as soon as the house is paid off and hopefully the real estate bubble bursts soon and prices drop, I will be on the lookout for apartments / houses that I will then rent out. The tenant will nicely pay the instalments then. I could already do that now, but a) prices are way too high and b) it’s too risky – maybe you get unlucky with a rental scoundrel and then you might no longer be able to meet your obligations due to double burdens. When the house is paid off and the tenant can’t pay, I can still step in without having to worry.

Yes, I am rather the low-risk and security-conscious type. That suits me best and I can sleep peacefully.

And from my point of view, what guckuck2 wrote isn’t thought far enough. What good does it do you if you make €20,000 over time, but I only manage €10,000 through special repayments, yet I’m done with the loans 20 years before you and suddenly and permanently have €1,500 more per month available plus the special repayment amount while you still have to service your loans? I have caught up the €10,000 you made more than in 6 months.

And what guckuck2 writes is, in my opinion, not thought far enough. What use is it to you if you make €20,000 over time, but I only make €10,000 through the special repayment, but I am finished with the loans 20 years before you and suddenly, and forever, have €1,500 more available monthly plus the special repayment amount, while you still have to service the loans? I made up the €10,000 more that you earned in 6 months

Always remember: special repayment is only possible with a percentage share per year... I can't just pay off my loan from one day to the next once I can withdraw my long-term capital after 15 years.

After at least 10 years you have the option for a special repayment (§489 Building Code), so yes, you can simply make a special repayment or pay off completely after 15 years, provided you have not taken out a new loan after 10 years.

Yeah, exactly. But you first have to manage to fully repay the loan after 10 years... Nowadays the average term is 30-35 years. Of course, if an inheritance comes, I can repay the loan earlier, but if I don't expect an inheritance, I have to take out another loan again. So I can't say with 100% certainty that I can fully repay a loan at any time, because I might have to take out another loan after 10 years and EVEN possibly again after these 10 years!!

And here we are again with the mentioned risk...