A flat for sale

Simplified example

A flat costs €150,000. You have €40,000 in cash and a regular income from your job.

What do you do?

Choose a decision to see its consequences. You can look at every option; there is no time limit and no one right answer.

A. Buy with a loan and put in €30,000 of equity

Right away: €30,000 is exactly the 20% a property loan requires. You keep €10,000 in cash.

Possible later: The bank checks that all repayments together are at most 40% of your income. Running costs, insurance and upkeep come on top.

B. Keep renting and save

Right away: Your cash stays available.

Possible later: If your income grows, a bigger property or a smaller loan may be possible later.

C. Buy the flat and let it instead of moving in

Right away: You need the same 20% equity. Rent only comes in once you sign a tenancy agreement with an applicant.

Possible later: Until then you carry the running costs yourself.