D.he interest rates on loans are in the basement, and the prices of the shares have risen in the past few months despite Corona. Aren’t these good prospects for getting a bargain in home finance? What do you think of the idea of paying off debt for your own roof over your head with the help of stocks? One of you is sure to shake your head because it sounds like roulette, but the other of you is guaranteed to enjoy it because the interest rate differential promises decent profits. Therefore, for those of you who are undecided, I would like to put the story in numbers and talk to you about the opportunities and risks of the matter. I Agree?
The house buyers, a married couple with two children, are 36 and 34 years old. They have around 250,000 euros in various accounts that have been raised through gifts and thrift. The home the family wants to buy is in Bavaria, is 15 years old and is being offered for 800,000 euros. In addition, there are additional costs of 50,000 euros, so that the effective purchase price increases to 850,000 euros. That requires a $ 600,000 loan, as you can see, and if this is not your first time reading this column, you will know that I’m a friend of faster repayments. It is and will be a fine thing to be in debt around your 50th birthday, and when the funds are in place, they should be put to good use. Doesn’t that make sense to you, or do you have a different opinion?