480,000 loan too high, experiences?

2015-06-05 14:57:24

It has been a while But I want to give an update again: Current total costs (according to planning with architect) approx. 780,000 EUR (incl. land and all-in)

Equity available: 280,000 EUR (incl. land)
Loan amount now in total: 500,000 EUR
Reserve: 30,000 EUR (will remain untouched)

The goal was actually max. 450,000 EUR loan but since interest rates are now slightly rising, we will secure 15 years at 1.8%. Then we have to pay down the big amount as quickly as possible with special payments. But what can you do? Keep saving and wait??.. that can backfire.

Regards, Steffen

2015-06-05 22:32:27

What is missing from the calculation? My income fluctuates due to self-employment between 50,000 and 150,000 gross p.a. The last few years have been good... but what does that mean? Let's leave out the income of my wife (part-time). My goal is also full repayment within 20 years. That would be 2,700 EUR monthly at an assumed average interest rate of 3%. That would have been possible in the last 8 years. If things go badly... it is payable... but of course the term explodes. If things go better... we are done in 15 or 10 years. As a self-employed person, I have NO planning security... no matter how I calculate. You have to be a civil servant.

I still tend to save... but everyone advises against it. Aside from that, we still see 1.5% for 10 years. Bet on it! Probably even less. There is definitely room to go down with a good equity ratio.

What industry are you self-employed in?

2015-06-05 22:36:38

In which industry are you self-employed?

IT

2015-06-06 17:36:47

When you mentioned the m² around the budget, I immediately thought that it would definitely be more expensive. 500,000 loan. I would secure myself and the family well. BU and term life insurance.. because otherwise a 2000€ installment is never manageable.

2015-06-06 20:24:01

RLV was surely mandatory anyway, right?

2015-06-06 21:17:00

Of course, even before building the house, I am highly insured for BU and also highly insured for LV. Anyone who is self-employed and has a high income should make provisions for this. Even with a high daily sickness benefit, one should not be stingy. I currently pay about 400 EUR per month for BU+LV+KTG.

Best regards, Steffen

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480,000 loan too high, experiences?

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