3 ms·
Obviously it’s great of you can save huge chunks of you income for multiple years, but even then it may be the financially better decision to buy at a good time
by Xylakant 4y ago
Obviously it’s great of you can save huge chunks of you income for multiple years, but even then it may be the financially better decision to buy at a good time and mortgage rather than buying when you have the money. For example, my remaining mortgage is at a lower interest rate than what I can have if I invest. So it makes sense to not exercise my early repayment option.
Debt, as long as it’s backed by a sufficiently good asset can be a good option.
- lupire 4y agoYou have a negative interest rate mortgage?
- Xylakant 4y agoNo, at around 1% fixed for 10 years. You can get up to 2% on very short term investments in Germany right now with interests rising.
- Lio 4y agoNo but we do have inflation eroding the value of savings and also the cost of fixed rate mortgage debt. Right now you need a pretty good rate of return just to keep pace with inflation if you're saving. Meanwhile that same inflation is reducing the value you the debt you've taken on to buy a house and you get to live in the house as it pays off.
- scarface74 4y agoYou can get an FHA loan with 3.5% down and they are easy to qualify for.