I live in Germany with very little savings, around 20k. I have seen some run-down old houses in far away areas offered to be sold. My gut is telling me that it's a good idea to own a house as property, even if it's run-down. However I'm not sure about the possible risks or benefits from taking such a step.
I'm in my late 20s and planning to get married in 2 to 3 years. I was thinking to buy such a house and then renovating during my holidays. However, I'm not really sure if this is a good idea or not, since I don't know the possible risks or benefits.
The problem is that I can't imagine living in such a house because it will be too far from any city in Germany. Also if I renovate it I doubt anyone will rent it since I would imagine not a lot of people live in such remote areas anyway, so the possibility of demand is rather low.
However my gut is still telling me to make such a purchase, just to make sure that if everything else goes wrong, I will still have a place to live. This possibility is rather low as well because in Germany we get a lot of social benefits. But I'm considering buying one just as an extra layer of security, i.e you never knows what could happen.
Here are the possible benefits that I could think of:
1- Extra peace of mind.
2- The possibility that the prices of houses rise in the far future. (Which is an extremely low possibility given the aging population here)
The possible risks:
1- Freezing 20k Euros liquid for a long period of time on a property that I will possibly never use.
2- Spending possibly extra 10k Euros for renovating and nobody rents it. (The 10k figure is just a guess ... not sure if renovating could cost more than that).
3- Spending my holiday in doing something useless while I could use that time to learn something new or invest in personal skills. (I'm a programmer ...)
Are there other risks or benefits that I could have missed?