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My partner and I have rented a home in a small village and would like to stay there for many decades to come. However, I feel uncomfortable being a tenant. So, we have saved enough money to buy a house.

Unfortunately, no house has been for sale in this area for at least six years. What should I do with the money while we wait for a buying opportunity? I want to minimize the volatility risk of the real estate market and avoid bleeding money to the landlord.

My idea was to "indirectly" buy a house through investing in real estate companies. The dividends would pay our current rent and the value of the shares would roughly match the price changes on the local real estate market.

However, compared to (directly) owning a home we would have to pay 25% tax on the dividend income.

Is there a way to save the money without additional losses compared to buying a home now?

(I was thinking about founding a "home cooperative" with my partner, which holds the shares and becomes the tenant for the current home. The rent reduces the profit of the cooperative to near-zero.)

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    "No house in six years" - that is slow. My Gemeinde (in BW) has a population of about 2700 and there have been lots of activity in the last six years. This is not an answer to the question you asked (hence a comment), but have you let it be known in the community that you are looking for a house? Have you considered asking the Gemeinderat if there is any possibility of releasing some land as building plots? – Martin Bonner supports Monica Nov 5 at 11:08
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    The village has about 160 inhabitants. Practically everybody knows that I am looking for a buy opportunity. – ManuelAtWork Nov 5 at 11:57
  • Perhaps extend your search area to other nearby villages? – Martin Bonner supports Monica Nov 5 at 12:54
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Investments in real estate companies along with paying taxes on the income is probably as good a plan as anything. However, if the investments build up unrealized capital-gains then the future house might be financed instead of cash-bought so as to avoid capital-gain taxes on the investments.

Or put the funds into growth investments and then there is no income tax.

Then plan on financing the house but hedge future interest rates with sell-side government-bond futures.

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