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
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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•@GeldGenie Thank you for your input. We have set ourselves a limit of 2k per month. We are not prepared to spend more. Accordingly, we end up with about 250k for the house. More would of course be possible, but we don't want to do it. If it works out well, if not then it's no big deal.
Can you briefly explain the exit via DCA? Unfortunately, I don't know the term.
Can you briefly explain the exit via DCA? Unfortunately, I don't know the term.
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@Benson78
But do you need a house with a 2k monthly payment? Or would a smaller one also lead to satisfaction? That's what I meant 😊
DCA - Dollar Cost Averaging.
If you want to make a purchase over 120k in 1 year, you can minimize risks by getting out of the market 12x 10k, i.e. monthly. Of course, you will miss out on possible price potential, but you will also no longer be exposed to the risks.
My reasoning: If you wait until the end and the market collapses (for whatever reason....), the dream of home ownership will burst.
At the end of the day, you have to assess the risks and opportunities yourself. 😊
But do you need a house with a 2k monthly payment? Or would a smaller one also lead to satisfaction? That's what I meant 😊
DCA - Dollar Cost Averaging.
If you want to make a purchase over 120k in 1 year, you can minimize risks by getting out of the market 12x 10k, i.e. monthly. Of course, you will miss out on possible price potential, but you will also no longer be exposed to the risks.
My reasoning: If you wait until the end and the market collapses (for whatever reason....), the dream of home ownership will burst.
At the end of the day, you have to assess the risks and opportunities yourself. 😊
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•Great, thank you very much 🙏
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