What can we finance?

If you had maintained the same savings rate (=repayment) anyway, I disagree. If forced saving through the loan agreement has psychological advantages, it's a different matter.

Indeed, I have reduced my consumption elsewhere, that's probably true. Actually in the sense of forced saving.

But I could also spend interest and repayment on a rental apartment (cold rent). At least if it is supposed to be something decent and modern. Is the own house financially worse off in this scenario?

Is your own house also financially worse off in this constellation?

It depends on how much equity flows into your own house and what you would have done with it alternatively if you were renting.

The fact is that if you rent a single-family house, you often only give the landlord 2 - 3% gross rental yield. Minus a few risks for you, plus a few restrictions on your freedom. That is the amount you really "burn." What your equity would have yielded elsewhere during this time is the question. I claim that savings plans in other investments (stocks, ETFs, renting out properties yourself, etc., etc.) in the amount of the repayment are ultimately stronger than your own house. Unless in between a mega crash occurs and you miss the exit from all markets beforehand. Then you can at least still live in your house (provided the bank does not demand it).

If I wanted to rent the mentioned nice apartment in my city, I would have to spend my mortgage payment as cold rent (I have already seen a terraced middle house 90m², small garden for the money, great!). For the interest I will (initially) pay, I could barely rent a prefabricated apartment (cold rent).
It is also noisy for me, I hear too much from the neighbors for my taste, someone below me smokes almost at all times of the day... oh no, I am really looking forward to having my own place and I think I will be better off with that than with a rental apartment. Ultimately also financially.
The original poster should also be able to manage considerably better with his interest than with the mentioned rental apartment. (750k€ loan at 2% - 1250€ per month)

Get nicely screwed over by the banks Never ever will you be cheaper with ownership than with a rental apartment. Whoever believes that also believes in Santa Claus

Never ever will you pay less with ownership than with a rental apartment.

Objection your honor. If you build just as small as you otherwise would have lived in a rental and if no older (cheap) rental contracts are available anymore, it could very well happen.

With so many subjunctives, it only happens very rarely. But a problem is also that many people do not know what else to do with their saved equity.

Objection, your honor. If you build just as small as you otherwise would have rented and if no older (cheaper) rental contracts are available anymore, that could very well happen.

With so many subjunctives, this will only happen very rarely. But a problem is also that many people don't know what else to do with their saved equity.

Do you know anyone who builds like an apartment? That technically doesn't work at all (keyword: utility room, heating, heat loss through exterior walls, own outdoor area, and so on).

Do you know anyone who builds like an apartment? That’s technically not possible (keyword: utility room, heating, heat loss through exterior walls, own outdoor area and so on)

You can rent a house. But as I already said: the rental yield is so low that you can’t build even one percent more expensive than the year the rental building was constructed. So, with land. Definitely not possible at the moment.

That’s why I basically agree with you. In rural areas of Western Pomerania, it might break even somehow, but even there it’s probably very rare.