What to do with a lot of equity?

The new job is secure, same employer. It is a government position and I can retire there if I want to. So absolutely fixed.

Staying with the parents is unfortunately not possible, so we would have to rent something. And that makes my neck hairs stand on end, just leaving the amount of equity with the bank. I will not invest it somewhere risky though. A plot of land is not in sight, so I am comfortably expecting to bridge 1 to 3 years.

The net income at the lowest end would be my income in the initial period at this position, without my partner's income. Since we are planning to have children, she would then receive parental allowance, but I have not included that here. We have 4,000 net together as long as she works (and I do in the initial period, my income steadily increases: collective agreement).

Hello,
How market prices develop is the next question. The local market in the Stormarn district (in the outskirts of Hamburg) is already a bit overheated, with prices being paid that are beyond belief, at least from a local perspective. Land is also scarce or the last building gaps are being closed. This ultimately has consequences for the prices of a condominium.
Kermit

It is no different here in Bavaria; it keeps getting more and more expensive. But doesn’t that mean the price of a condominium probably won’t fall? I find that hard to imagine.

Broker fees are not due, at least not for the two offers that are currently interesting. Of course, additional purchase costs should not be underestimated. But if I calculate renting for another 2, 3, or 4 years, I don’t know. And we won’t find anything much cheaper than now.

Broker fees are not due, at least not for the two offers that are currently interesting. Sure, additional purchase costs should not be underestimated. But if I calculate renting for another 2, 3, or 4 years, I don't know. And we won't find anything much cheaper than now anyway.

With the price increases in recent years, that could slow down significantly in the coming years. And in addition to the additional purchase costs, there are naturally the somewhat higher ancillary costs for the condominium, which cannot be fully passed on to the tenant.

For such a period, buying a condominium is pure speculation; you might as well invest directly in stocks or funds. That can really backfire.

It is no different here in Bavaria, it keeps getting more and more expensive. But doesn’t that mean that the price of a condominium probably will not fall? I find that hard to imagine.

I agree with you to that extent. However, it leads to the fact that you often buy at overpriced prices. If there should be corrections in value in the coming years, you still have the loans to deal with and the market may no longer support your price expectations. But that is – as already mentioned – speculation.

Broker fees are not due, at least not with the two offers that are currently interesting. Sure, additional purchase costs should not be underestimated. But if I calculate renting for another 2, 3 or 4 years, I don’t know. And we probably won’t find anything much cheaper than now.

I can well understand your dilemma. On the one hand, interest rates are good, but on the other hand, prices for land and all trades are rising. Then you only need a property "in sight," but probably can’t clearly decide if and when another relocation will take place. From my point of view, there is no real perfect solution. Or consider a condominium as pure "concrete gold" and rent it out.

If all the money goes into an apartment, then it will no longer be available as equity for a new house in x years.

How does that work then? Would you first have to sell the apartment again in order to be able to get new financing at all with an income of €2,800 (in the worst case for you)? Sounds like high follow-up costs during the transition period.

In total, with the lost incidental purchase costs when reselling and the general risk of a decrease in value, I can only advise against it. Better to continue renting and then stress-free buy the right dream house in a few years.

First, rent and take it slow. Paying rent for one or two more years doesn't matter. Buy what you like; rushing is clearly out of place for a decision that usually lasts a lifetime. Calmly look at apartments and houses, get ideas, let your own ideas grow, and then buy with a clear conscience. I think you are still way too "clueless" to just do something with such a sum. It can end badly and plunge you into misfortune. Maybe you like an apartment better than a house or vice versa... But once you've bought a property, you can't just sell it again. Many say that, but reality looks different even on the current market. I wouldn't speculate on selling at a profit either; you first have to recoup all the incidental purchase costs through appreciation. You shouldn't forget that the second property also has incidental costs... If you buy an old building, you might want to renovate or refurbish it. Maybe a new building, but what should the properties look like? Do you want it bright and modern or more like a witch's house? Do you value large rooms, need a terrace or a large balcony, definitely want a garden, or is everything within the walls enough? Do you want to rely on further apartments in the property to get subsidies in old age, or maybe better enjoy being alone? I am glad to have lived in several apartments as a tenant. Only because of that do I know what is really important to me and what is not.