B.T. (@Benson78) on getquin

B.T.

1Wk·

Hello everyone,

The following questions are burning under my fingernails:

My wife and I are seriously considering looking for a suitable small home of our own after all. We are both 45 and have our first viewing next week.

Should we sell the shares we need now that our ETF has done well, regardless of whether the house purchase actually works out? Or would it be better to wait until things get serious before selling and possibly accept a weaker (or even better) performance?

In the case of this particular house, 30% equity of the value and the ancillary purchase costs must be included. That's around 93k and would be our entire savings and retirement provision.

I find it difficult to liquidate everything for this. My wife is more relaxed about it, because there are still inheritances to come in a few years' time. But of course we hope that this will take 20+ years.

In addition, we both work and have a net household income of around 5.5 k, and rising. This means that we should have paid off the loan for the house relatively quickly (10-15 years) and we will still have the opportunity to save in an ETF again.

What are your thoughts on our situation?

Many thanks for sharing your thoughts!

17 Comments

GeldGenie@GeldGenie

1Wk

In principle, the ideal case would also be to exit or raise liquidity via DCA.

Personally, I'm not a fan of pension provision... But since CH & DE have different systems, someone else will be able to help you more.

Regarding the house question: won't a smaller/other one do?

Just because you can afford a 1 million house doesn't mean you need a 1 million house...

1. list with need/want/nice to have/don't want
2. look at the market

And not we have X, can afford Y maximum and then only look at the limit and above. 👍

Regarding credit and foresight. Credit in this case is not bad and I would leave it at that. 100k today is more than 100k in 20 years. And if the real estate interest rate is 3.5%, you should get more than 3.5% a year on the market (over 20 years). 😊

Hope that helps - my 2 cents.

GG

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Kevin C.@KevinC

1Wk

First of all, I would ask myself the question: does it really "have" to be a house - and if so, wouldn't it perhaps be possible to rent one?

There is no right or wrong in this respect. Just remember, as the owner, issues such as broken heating, a new roof, etc. are all up to you (keyword: take into account maintenance reserves appropriate to the age of the house). In addition, you often spend more money on things like the garden, etc. than planned. I'm currently seeing this more and more with friends.
Furthermore: what happens if - for whatever unlikely reason - there is no inheritance? Long-term care in a nursing home (e.g.) is not cheap or the parents want to "live" a little longer and simply spend more money than expected. Since only you know the sums, you'll have to judge for yourself. Otherwise: if you have liquid assets, perhaps a cheaper personal loan from your (in-laws) parents would be an option? In this generation, money often lies around without interest anyway. Maybe you can get a (written) personal loan at 2% interest. That would save you a lot of money.

Why I'm going into so much detail: I'm bothered by the fact that your entire retirement provision will be gone. In the worst-case scenario, you would have a paid-off house in your early 60s, but only the SPS as a retirement provision. If you're lucky, you'll be able to keep the house, but you probably won't be able to "enjoy your retirement" if that means traveling regularly, going out to eat, etc.

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Dividendensammler@DividendensammIer

1Wk

Apart from that, yes or no home ownership.

Pledging part of the deposit as an equity share is also a Möglichkeit👍🏻 I also use it for real estate transactions. If you don't plan to sell the deposit, this can also increase your equity

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SGP@Koenigmidas

1Wk

Depending on the bank, you can also transfer your shares as equity. Because you have to pay tax on your profit when you sell them. However, depending on the bank, if you transfer it incorrectly, the shares will be sold and you will have to pay tax on the profit as normal (this happened to me).

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Peter@Pe_eT

1Wk

The question arises as to whether 30% equity (70% condis) must necessarily be brought in. What would the interest be with 80% or 85% condis? If the interest rate difference is not so high, I would not contribute my full equity. With some banks / construction financing, you can change the repayment rate during the fixed-interest period or make special repayments if you have some money left over to reduce the repayment period.

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Alfred E.@Papiertiger

1Wk

So purely based on the posts, I would go through all the options. 1) Rent a house. 2) Buy/rent a larger apartment etc. As soon as the child is out of the house, you generally don't need that much space anymore and all the "janitor" activities are not without them either. As soon as the house is paid off, the big investments usually come (heating, windows, roof). In many locations, buying a house is not an investment but a luxury that you want to afford. ( I live in a rented house myself :-) )

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