Hey everyone,
Long time follower of this sub. Learned a lot, thanks!
I live in Berlin. I'm 33. I'm a non EU citizen but I have permanent EU residency.
I work as a free-lancer. I have about 170K euro saved up for a downpayment on a flat.
I plan to remain in Berlin for at least the next 5 years or more.
So a question I've seen posted here before, do I buy a flat to live in or invest?
The closing costs in Berlin amount to about 11.5% of purchase price. So it would be about 7 years until the value of my property has grown to overcome that initial hole I'm starting in. At least I hope!
I've been quoted with an interest rate of 3.85 for a ten year mortgage.
Or, do I continue to rent and put it all into ETFs etc...which I would hope grow by at least 6-7% a year.
My rent is about 1300 euro all in right now, with 3% annual graduation.
The mortgage would be 1350 a month (850 interest, 500 principle). Plus 210 HausGeld every month.
Then of course other costs like utilties, insurance and internet.
By year 8 the flat should hopefully be worth quite a bit more, especially considering the housing crisis in Berlin is clearly only going to get worse and worse.
My income fluctuates, but it seems to be going up each year and I'm confident it will continue to do so for now.
2023 - €13K / month
2022 - €8K/month
2021, 2020 and 2019 - €3-5.4K month
Before 2019 I wasn't as consistent and worked some part time jobs before my now job really took off.
Anyhow, would appreciate any thoughts and opinions!
Long time follower of this sub. Learned a lot, thanks!
I live in Berlin. I'm 33. I'm a non EU citizen but I have permanent EU residency.
I work as a free-lancer. I have about 170K euro saved up for a downpayment on a flat.
I plan to remain in Berlin for at least the next 5 years or more.
So a question I've seen posted here before, do I buy a flat to live in or invest?
The closing costs in Berlin amount to about 11.5% of purchase price. So it would be about 7 years until the value of my property has grown to overcome that initial hole I'm starting in. At least I hope!
I've been quoted with an interest rate of 3.85 for a ten year mortgage.
Or, do I continue to rent and put it all into ETFs etc...which I would hope grow by at least 6-7% a year.
My rent is about 1300 euro all in right now, with 3% annual graduation.
The mortgage would be 1350 a month (850 interest, 500 principle). Plus 210 HausGeld every month.
Then of course other costs like utilties, insurance and internet.
By year 8 the flat should hopefully be worth quite a bit more, especially considering the housing crisis in Berlin is clearly only going to get worse and worse.
My income fluctuates, but it seems to be going up each year and I'm confident it will continue to do so for now.
2023 - €13K / month
2022 - €8K/month
2021, 2020 and 2019 - €3-5.4K month
Before 2019 I wasn't as consistent and worked some part time jobs before my now job really took off.
Anyhow, would appreciate any thoughts and opinions!