Upcoming house purchase: buy with or without leasehold rights?

I know.... that's why the financial broker. Without buying the property, I would roughly be done after 11-13 years with the small loan amount....

The leasehold still runs for 35 years. 141 per year. That is 141 times 35, almost nothing, under 5. Do that. And the bank, if you repay in 13 years, will also cooperate. Where is the risk? There is none. Karsten

I also don't see any risk. Even if there is no equity, I want to repay 5-7%... so it should be doable in a relatively short time. The only thing occupying me is the question of what happens with the property. Of course, if I buy it and finance it directly, it will be mine after about 24 years. If not, I will have paid off the house after 13 years, but the property is not mine....

From a purely economic perspective, buying immediately is not worthwhile compared to the 13 years of leasehold due to the tiny payment.

If you had the discipline to save the same amount you would have to pay for the property in an investment with a term until just before the leasehold contract ends, you would have something left in the end.

Mentally, the thought "what I have, I have" may be better; whether that corresponds to your personality, only you can know.

Personally, I would always choose the path that brings me the least stress and thus the highest quality of life – that’s why you buy/build.

Financially, buying later makes more sense.

hello,

do you then also have a right of first refusal for the property?

For me, it would be stressful to always have the feeling of accumulating debt in 24 years.

With a 100k house that will be modernized every now and then over the next 24 years, I would mentally give up on saving 84k on the side.

You haven’t done it so far even with the very good income, why should you do it in the future?

Then rather a clear statement and buy completely

I am also thinking: What will happen in the year 2030 and in the year 2052?

- In 2030 I will have paid off the house
- In 2052 the [Erbpachtvertrag] will expire

If you also consider the whole thing as a retirement investment, it probably makes sense to buy the land. The house will certainly not have the value in 2052 that it has now. The land, on the other hand, probably will, I suppose...

On the other hand, I will be paying off the house for the next 13 years and will then be debt-free.... and could then set aside €300 monthly to save for the purchase of the land

If I buy the land as well, I will be debt-free after 24 years and have more "capital (house + land)" for retirement.

But who knows what will even exist in the year 2052....