Quote from: Ultegra134 on January 24, 2023, 05:49:08 PM

If you're young and haven't inherited a property from your ancestors, chances are that you're forced to rent. Personally, I've been renting for over 6 years and have been living with my girlfriend for the last 4, sharing rent and utilities. Overall, we've both spent over €25,000 together, and after spending all this money, you're practically left with nothing and may be subject to looking for a new house at any moment.

The average rent for a one-bedroom apartment is between €300 and €400 at best; thus, I was thinking that taking a loan is as costly as paying rent per month, but after 15-20 years, you end up with a house. My main concerns are the following: First, if you're in a long-term relationship like myself, you can never be 100% sure that you'll be with that person in 20 or 30 years from now, which might prevent you from opting for a loan. Secondly, you need to be certain that the location or city of the property to be bought is convenient for future job offers and so on. Thirdly, because a loan is a many-year commitment, there's no guarantee that you'll be able to afford the monthly payment 15 years from now.

On top of that, finding the ideal house as a renter is almost impossible; there's a lack of housing, and rents are extremely expensive and unreasonable at the same time. We had a difficult time finding a house recently, and it's far from ideal. There is now a new government-funded loan program that is about to start, funding up to 75% of the loan interest-free while the rest is funded by private banks and is subject to a relatively low interest rate. This led me to think about taking a loan and purchasing an average two-bedroom apartment, but I have the concerns that I voiced earlier.

Here's my opinion about your concerns related to buying a house

First off, have a serious chat and make sure you're both on the same page. Then, get a legal cohabitation agreement sorted out. This spells out who pays what, who owns how much, and what happens if you split up or something worse. Nobody wants to think about that, but it's a must-do.

For your second concern, do some digging into the neighborhood. What are the job prospects like? Is the area growing? Talk to people who live there, real estate agents, or even spend some time there yourself. You want to make sure it's a good fit for both of you.

And of course, there's the last concern. Get a clear picture of your finances before jumping into a loan. Be realistic about the risks and have some savings set aside for emergencies. You might even want to look into mortgage protection insurance just in case.