ᐅ The situation in the real estate market... unbelievable

Matthew03 schrieb:

What’s the use of these generalizations? For concrete numbers, there is specific help available, even here in the finance thread, and often the advice tends to be overly cautious.
I just don’t find it productive to not differentiate. For example, 2 cars = 1000,- per month. We both commute and together spend (yes, including proportional taxes and so on) 500-550 euros. So what now? The same goes for insurances, and so forth. You really have to look at each case individually to give accurate advice; otherwise, it’s just speculation and assumptions.

Hi Matthew,

Well, we are all talking here about large groups of people where most opinions affect the majority.

If you really believe that every single case needs to be differentiated, then you’d have to generally stay out of 90% of the threads here. That can’t and shouldn’t be the point.

We’re just talking, sharing experiences, and exchanging views.
I don’t HAVE to be right! On the contrary, I’m glad when someone points out flaws in my thinking.
But we can’t possibly discuss every individual in detail in a thread like this….

To answer your question:
Generalizations, in the context we are in here, can sometimes help people who are trying to decide whether or not to do something. They can consider the general statements critically and then choose which aspects apply to them or not.

If you want to know everything precisely and personally for your own case, then you need to go elsewhere—such as a financial advisor and a psychologist. Then you will know exactly what, when, and why… (though that process may take longer).

Well, with the 1500 annuity, about 1100 euros would likely go toward forced repayment. This portion effectively builds equity and should be recorded as a comparable savings amount for the tenant household. However, the homeowner MUST save this way, while the tenant CAN choose to save additionally. Then, in your last example, we'd be back to 4900 euros. But based on experience, tenants typically won’t do this.

In retirement, the difference created by this forced saving definitely becomes noticeable.

Scout schrieb:

When you get older, you definitely notice the difference that this cost-cutting leads to.

I understand. But when you are older, you also quickly realize what you definitely would have done differently when you were young.

Life doesn’t consist exclusively of the years between 65 and 87.
But apparently, this is where some opinions differ here...

My view is: The journey is the goal. And I want to make that journey as comfortable and relaxed as possible.

which does not change the fact that you are comparing apples and oranges here. An oversimplified calculation.

There are other disadvantages to ownership besides the ones you outlined, but you adjust the latter to suit your own perspective.

Farilo schrieb:

Regarding the 1k for 2 cars, I took this figure from the forum, where €500 per vehicle is frequently mentioned. This amount then covers everything related to the car.
If someone starts by saying "I only pay 150 because I got the car as a gift," then we could also assume that person has to pay off €150k of debts left by deceased parents. (Of course, that’s nonsense).
So let’s assume that everything has to be bought new or used.

With a net income of 5k, company cars should be quite common as a primary vehicle, which hardly costs anything anyway. The second car can then be a small and affordable car used exclusively for commuting.
Otherwise, €500 is realistic, yes.

1000 for food: Destatista states that on average 14% of net income is spent on food, restaurants, drinks, and tobacco (!). So rather €700.

Scout schrieb:

which doesn’t change the fact that you’re comparing apples and oranges here. Oversimplified calculation.

There are other disadvantages to ownership besides the ones you outlined, but you just tailor those as you see fit.

Of course, I am comparing apples and oranges. A single-family house is simply a different thing than a rental apartment.
There’s no other way to compare them.

Single-family house in Hamburg-Bramfeld with 120 sqm (1300 sq ft) for 600k
Compared to
Single-family house in Hamburg-Bramfeld with 120 sqm (1300 sq ft) for 600k

What’s the point of that?!

And I’m sure you’ll be happy to explain what my example calculation has to do with an oversimplified calculation.

Sure, it’s not an exact calculation that applies to everyone. But it’s not that far off either. I mean, it’s quite realistic, isn’t it? If not, please point out the oversimplifications, and then we can discuss them...