2Mon·

Strategy for buying a house

Dear Community,

I am currently in the process of buying a property and now need €70,000 from the deposit.

I'm now wondering what I should sell. I have some losers in my portfolio that I should actually sell, but it feels strange to realize all the losses.

I'm also thinking about the subsequent weighting of stocks that are performing well (such as $GOOGL (-0.18%) for example), which would increase considerably if I withdrew the €70,000.

My first thoughts would be stocks like $MC (-0.5%)
$UNH (-1.35%)
$WSIL (+0.27%)
$NVDA (+4.06%)
$COPX (+1.03%)
$CSPX (+0.63%) and parts of the $IWDA (+0.47%) to sell.

I am looking forward to your opinions!

23Positions

€224,016.30

16.23%

25 Comments

Wealth-Accelerator@Wealth-Accelerator

2Mon

Sell everything in the red and halve Alphabet, Iris, Allianz and ASML. You should get 70k out of it pretty much without taxes.

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Snoopy@Snoopy

2Mon

You wouldn't touch the ETFs?

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Wealth-Accelerator@Wealth-Accelerator

2Mon

@Snoopy
I am an absolute ETF advocate 😅

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Markus@_xempex_

2Mon

@Snoopy If you sell shares at a loss in order to get rid of them, you also need share gains in order to offset them. Stock losses cannot be offset against ETF gains. I assume that's what @Wealth-Accelerator meant.

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Susanne@Isus01

2Mon

I would not ignore the tax aspect when realizing losses, but the rules in AT and DE are not identical, so I cannot help you in detail.

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Snoopy@Snoopy

2Mon

@Isus01 Thank you, good point. It's a good way to fill the loss pot

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Oleg@ScorpionfromBW

2Mon

Why are you worrying so much? Just sell everything that is in the red. And balance out the loss pot with the parts of the winning stocks or parts of the ETFs. It's not as if you have to liquidate your entire portfolio.

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Snoopy@Snoopy

2Mon

@ScorpionfromBW Well, I can't really get to 70k and I'd hate to liquidate my entire BTC position just because it's down a few %.

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Oleg@ScorpionfromBW

2Mon

@Snoopy I meant balancing the loss pot. And to get the remaining amount, you just have to sell shares in the three ETFs. I would recommend $IWDA, because in my opinion it doesn't make sense in your portfolio because there are no extra emerging markets. The $VWCE has at least 10% EM in it.

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Lehrer M.@Lehrermitaktien

2Mon

How do you see LVMH's chances of recovery in the near future? The MSCI Core could be reduced to 50k.

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Snoopy@Snoopy

2Mon

@Lehrermitaktien I see LVMH as even more difficult in the next 1-2 years, which is why I would sell it first. I would liquidate the S&P 500 ETF and part of the MSCI world. Otherwise still smaller stocks, as described in the article.

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Mats-Invest@Mats-Invest

2Mon

I would realize all losses including Etherum. This is crystal clear to me as they are speculative and lower quality stocks. Then fork out the remaining missing amount from GOOG, Allianz and ASML as @Wealth-Accelerator says. But I would move some of the 3 "winners" to another custody account 2 at the same bank and sell the remaining ones in custody account 1 with the lowest profit. This way you sell in a tax-optimized way. This is because the FIFO principle (First-In-First-Out) is mandatory in Germany (according to § 20 para. 4 sentence 7 EStG) for a partial transfer of securities. And I personally would go easy on Google + ETFs. Google is booming so much and the cloud is growing at 62%. And ETFs are always good.

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Wealth-Accelerator@Wealth-Accelerator

2Mon

@Mats-Invest
This is the detailed version of my approach.
Perfectly optimized 👌🏼

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Barf@ktotheb

2Mon

Ever enquired about a Lombard loan? Liquid without sale.

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Stefan@Da_Fischi

2Mon

@ktotheb I was also about to write, a very elegant alternative with a collateralized loan 👍🏽

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Snoopy@Snoopy

2Mon

I am with Scalable and it explicitly states that the loan cannot be used to buy a property.

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federalreserve@federalreserve

2Mon

Sell losers and keep winners if possible. Anything else makes no sense.

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Pawfolio@Pawfolio

2Mon

I would definitely solve this with a Lombard loan.

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Johnny B.@JBatelli

2Mon

What about a pledge for the mortgage?

Advantage: You often get better interest conditions for the house (as more collateral is available), but don't pay the high interest rates of a Lombard loan.

Disadvantage: You can no longer access the pledged shares. You can usually switch them around within the custody account, but you cannot withdraw any money as long as the pledge remains in place.

The pledge usually becomes superfluous when the remaining debt on the home loan is only around 60 % to 70 % of the current property value. Then you can sell it again and do anything with it. But until then, you keep it and it can continue to grow.

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Snoopy@Snoopy

2Mon

@JBatelli Thank you for your answer! Mhm I am currently with scalable and it says that the loan may not be used for the purchase of a property.

But in general I would use the 70k as equity. I can't take out the entire loan via a securities loan anyway. I don't know how clever it would be to take out a Lombard loan for the equity portion... 🤔

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Kaviarsozialist@Kaviarsozialist

2Mon

I would take LVMH, biggest loser with -20% 11,900$ would already be a good chunk.
The rest from IWDA or VWCE, they are so broadly diversified that a partial sale hardly hurts and you can easily top up again later when the house is ready.
I wouldn't touch GOOGL and ASML with +140% and +122%, they deserve to stay in the portfolio."

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Nino@PortfolioNino

2Mon

Nice portfolio. If I were you, I’d sell all my crypto and buy some Meta, Microsoft, and MercadoLibre, plus a little Basic-Fit.

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