Analysis of our financial situation

Good day everyone,

like many of you, we have also been dealing with the topic of "own home" for some time now. In this regard, I would like to get your assessments of our financial situation.

Data: - both 30 years old - combined net income of €7,365 per month (€3,650 and €3,715, including Christmas bonus/vacation pay) - both permanently employed - no debts or loans - approx. €180,000 equity - monthly expenses €3,375 (of which €825 cold rent) - monthly savings rate thus about €3,990 - desire to have children possibly in the next few years

Property/Purchase Wish: - We are interested in a single-family house from the 1950s with a large plot that would need complete renovation. The purchase price is €560,000 (including real estate transfer tax, notary, land registry). We roughly estimate renovation costs of about €270,000. Total price therefore in the range of €830,000, which still means a considerable loan amount of €650,000 after deducting the equity.

The bank says they would finance this amount for us. What do you think? Are we taking on too much, especially if temporarily a salary is lost (child, unemployment...)?

Thanks for your help, Regards Erik

No one can judge that better than they themselves.

The basic data fits the project. Without any ifs or buts, if a child comes, it must be looked at what parental allowance is to be received and when the woman goes back to work.

A tax class change from 4/4 to 3/5 will increase income.

Basically, I don't see anything that speaks against the realization of the project, I would know what to do so that the house would be my dream property.

How big is the single-family house? [Kernsanierung] is often not cheaper than new construction. Do you already have reliable figures for the renovation?

How much would the monthly installment be?

830k at 7.4k (temporary) monthly... Feasible? Yes. I would never do it in my life! May I ask which area you are from or in which city the house is located? Or is the house near your apartment? Because the house seems very expensive with 870k total costs and your rent relatively cheap (I assume you do not live in 30sqm).

830k with 7.4k (temporary) monthly ... Feasible? Yes. I would never do it in my life!

May I ask which area you come from or in which city the house is located? Or is the house near your apartment?

Because the house seems very expensive with 870k total costs and your rent relatively cheap (I assume you don’t live in 30sqm).

Nothing, absolutely nothing can be derived from the purchase price and the costs, nothing at all, I really don’t know how one can judge to never want to do that.

Simply way too little information.