ᐅ 130 sqm detached house or single-family home within my budget of 220,000

Steffen80 schrieb:
Banks tell you what’s possible. Whether it makes sense, they don’t tell you. The bank doesn’t care if you end up bankrupt. The bank gets your house. When it comes to financing, the greed of banks speaks, not reason. You’re walking into a trap while the bank pops the champagne corks.

@Steffen80:

Dear Steffen,

I would like to, no, I must strongly disagree with you here.

A banker who takes their profession seriously does care whether their client’s financing is sensible and sustainable in the long term.

No banker, even out of self-interest, wants to hand over a loan case to the “debt collectors.” A banker also has a reputation to protect – anyone who deliberately advises their clients in a way that, to put it bluntly, causes them to “crash and burn,” certainly won’t stay in their job for long, and rightly so.

The persistent rumor that banks make a sack full of money on every foreclosure is unfortunately hard to kill.

The considerable expenses (both financial and labor) that a bank incurs during a foreclosure are simply “forgotten” too often.

In many cases, the bank actually loses money after a foreclosure.

I can assure you that the majority of bankers remain honest and see themselves as partners and advisors to their clients. I observe (and verify) this every day in my work.

Of course, there are exceptions in the banking sector, but I believe that’s true in any industry.

The widespread assumption that every banker automatically becomes a millionaire through commissions and bonuses is complete nonsense. If this is true at all, it only applies to a (very small) fraction of investment bankers.

That’s why I’m happy to share some insider insights here to encourage forum members to reflect a bit.

After all, not every entrepreneur is a ruthless exploiter, right? 😉

Best regards,

Dirk

Doc.Schnaggls schrieb:
@Steffen80:

Dear Steffen,

I would like—no, I must strongly disagree with you here.

A banker who takes their profession seriously is definitely concerned about whether their client’s financing is sensible and sustainable in the long term.

No banker, out of self-interest alone, wants to hand over a loan case to the “enforcers.” Bankers also have reputations to lose—a banker who knowingly advises clients in a way that, to put it bluntly, leads them into failure will certainly not keep their job for long, and rightly so.

The persistent rumor that banks make a lot of money from every foreclosure is unfortunately hard to dispel.

The significant expenses (both financial and in labor) that a bank incurs during a foreclosure are conveniently “forgotten.”

In many cases, the bank even ends up losing money after the foreclosure process.

I can assure you that the majority of bankers are still honest and see themselves as partners and advisors to their clients. I observe (and verify) this every day in my work.

Of course, there are exceptions in the banking sector, but I believe this is true for almost every other industry as well.

The widespread assumption that every banker automatically becomes a millionaire through commissions and bonuses is complete nonsense. If it applies at all, it affects only a (very small) portion of investment bankers.

That is why I am happy to share some insider insight here to encourage the discussion participants to think more deeply.

After all, not every entrepreneur is a ruthless exploiter and a tyrant, right? 😉

Best regards,

Dirk

You may be right. But based on my experiences within my circle of acquaintances, I am biased. As far as I’m concerned, all advisors and bankers could be done away with. Intelligent software does the job much better anyway 🙂 You can see this quite clearly right now in the insurance sector—see Manager Magazin, topic "One in Four Insurance Jobs at Risk" currently in the press.

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Thank you!
Construction Expert

Doc.Schnaggls schrieb:
I can assure you that the majority of bankers are still honest and see themselves as partners and advisors to their clients. I observe and verify this every day in my job.

That somehow reassures me!

By the way: My advisor also paid close attention to the home financing (together with me): Not too much! Better smaller and it works.

Best regards
Thorsten

nils1985 schrieb:
Thanks again. You’re talking about mid to late 30s. Do you think I’ll have paid off a condominium in 5-10 years? That’s definitely a different approach.
Best regards

The recommendation to buy a condominium is mainly based on the idea that you can use the partially paid-off condo as equity when purchasing a house. That wouldn’t apply to my situation. Basically, you’re using the condo as an investment, which carries a significant concentration risk. Everything needs to go perfectly for the plan to work: location, demand in 5-10 years, and so on.

I would rather rent and save on the side. A savings account or time deposit, and if you are willing to take some risk, also an ETF (preferably an index fund) savings plan. Whether you pay a few hundred euros in interest or rent each month… Plus, there are additional costs with the condo for moving and small items like lamps, windows, etc., which you often have to pay twice.

Regards, Steffen

Steffen80 schrieb:
The recommendation to buy a condominium (apartment) is mainly based on using the partially paid-off unit as equity for your house purchase. That wouldn’t be my choice. Basically, you treat the condo as an investment asset, which involves significant "concentration risk." Everything has to work out perfectly for the plan to succeed: location, demand in 5-10 years, and so on.

I would rather pay rent and save on the side. In a savings or fixed deposit account, and if you are willing to take some risk, also through an ETF (preferably an index fund) savings plan. Whether you pay a few hundred euros per month in interest or rent.. In addition, there are extra costs with the condo related to moving and small items like lamps, windows, etc. Most of these expenses occur twice.

Best regards, Steffen

That is indeed an alternative, which I basically mentioned yesterday as well.

Hello,

Steffen80 schrieb:

As far as I’m concerned, all consultants and bankers could be done away with. Intelligent software does the job much better anyway.

Crystal ball mode on: "Formats like "Bauretter & Co." thrive because people tend to trust online knowledge more than a real person." Crystal ball mode off.

Regards, Bauexperte