That is a very good point that I actually didn’t consider. I was thinking I would just take the mortgage in the last year of work, but of course the bank will make periodic checks and if it sees that I no longer have a job, they might activate some clause that would allow them to break the contract and I would have to give them back the money.
The Tragbarkeit formula goes like this:
required income = (5% * loan_value + 1% * flat_value) * 3
For example (5%*400’000+1%*600’000)*3 = 78’000
Of course I don’t plan to generate that kind of income, even with dividends. Maybe they could take my ETFs as collateral, but probably not at 100% of value. And in the event of a hugh market crash, I could risk the situation where my ETFs would not be enough coverage and the bank could demand more collateral, which I wouldn’t have.
Well, maybe my plan with mortgage cannot work. I will have to check my options. Thanks for pointing this out.