Analysis of our financial situation

The house is less than 15 km away from our apartment. The relatively affordable rent is due to the fact that we have been living in the apartment for over 7 years and there have been no rent increases since then. Seven years ago, rental prices were still more reasonable. We live in Southern Baden near the Swiss border.

May I ask why you absolutely wouldn't do that?

Sure.

Well, with certain salaries and circumstances, the house price of over 800k is not a problem. So, if you had 500k in the bank and were really secure in your job, then I could just about imagine it. (Because 4k per month savings rate, so almost 50k per year, the risk is manageable. So, 3 years and you’re done).

But with salaries around 3.5k individually and also a desire to have children, I would never burden myself with that kind of pressure.

We’re still talking about 800K+!!!
You have such a cool savings rate and such a good rent... So, IF I really felt the need for such a big and expensive house and it was my dream and there was no way around it, I still wouldn’t want to voluntarily put myself under pressure. Especially not because it’s totally unnecessary for you.

I mean, if you are relatively without prospects (financially), then under certain circumstances, I might understand some arguments.

But you? 30 years old, money coming in, rent "fair," savings rate top. I’d wait another 3-4 years, watch the market closely, educate myself during that time about renovation etc., and be ready at any time to strike when a bargain comes up!
Then you get the house, pay it off "cash" almost completely, and have a monthly rate of 200 euros for 30 years.

That’s how it makes sense to me. But just because I can’t wait 3-4 years and take on debt of 500k? Nah, no way... Totally unnecessary.

Believe me, many here say that despite half a million in debt they sleep like a baby... I respect that.

But there are at least just as many who sleep very badly because they owe the bank 200k.

Conclusion: Wait 3-4 years and wait for the next bargain or a fair offer, then pay it off almost completely and live nicely without any pressure and also enjoy the house.

Wait 3-4 years and thus avoid a Damocles sword hanging over your head? I would do that!

Yes, I consider that sensible, since it is directly related to the financial question. The OP is free to take up what was written or to ignore it. I don’t see any problem there. On the contrary, it would rather be unfavorable if everyone here says that the numbers fit perfectly, but in a possible parallel thread it turns out that the initial situation is not correct at all. That possible parallel thread might not even exist, so the stand-alone result of the "naked numbers" here is completely worthless. I personally see no benefit or added value for the OP in that. As I said, just ignore it. It doesn’t have to bother you. You can still position your offers...

No idea what you wanted to say with that now, did you read my post with suggestions and realize what confuses me and what I consider unnecessary?

Of course.

Well, with certain salaries and constellations, a house price of over 800k is no problem. So, if you had 500k in the bank and were really secure in your job, then I could just about imagine it. (Because 4k savings per month, so just under 50k per year, the risk is manageable. So, three years and you're done).

But with salaries individually around 3.5k and also a desire to have children, I would never burden myself with that pressure.

We’re still talking about 800K+!!!
You have such a cool savings rate and such a cool rent... So, IF I really had the need for such a big and expensive house and it was my dream and there was no way around it, I still wouldn’t want to put myself under pressure voluntarily. Especially since for you it is seriously unnecessary.

I mean, if you were relatively without prospects (financially), then under certain circumstances I could still understand certain arguments.

But for you? 30 years young, money coming in, rent "fair," savings rate top. I’d wait another 3-4 years, watch the market closely, educate myself about renovation etc. in the meantime, and be ready to strike at a bargain anytime!
Then you get the house, pay it off almost completely "cash," and then have a monthly rate of 200 euros over 30 years.

Then it makes sense to me. But just because I can’t wait 3-4 years and burden myself with 500k debt? No no... totally unnecessary.

Believe me, many say here that despite half a million in debt they sleep like a baby... I grant them that.

But there are at least just as many who sleep extremely badly because they owe the bank 200k.

Conclusion: wait 3-4 years and wait for the next bargain or fair offer, then almost pay it off and live nicely without any pressure and enjoy the house.

Wait 3-4 years and thus avoid a Damocles sword hanging over your head? I would do that!

I absolutely cannot understand this attitude (but of course I accept it), wait, then snap, pay cash? Wait for what? Pay rent on the side, possibly wait for rising interest rates (which I don’t see, at least not significantly), get nothing on the invested money?

With waiting, it depends on what the crystal ball says.
Whoever said wait at the end of the 90s might have benefited from it.
Whoever said wait since the end of the 2000s has done everything wrong.

The question of whether you can afford it doesn't arise with that income.

The real question must be: Is this nonsense justified for a 70-year-old house? No matter where I would live, whether right in the middle of nowhere or [Münchner City]... I would NEVER NEVER NEVER buy such an old shack for that price. When the market eventually becomes saturated and demand declines, you will bitterly regret this decision!

When it comes to waiting, it depends on what the crystal ball says.
Those who said wait at the end of the 90s may have benefited from it.
Those who have said wait since the end of the 2000s have done everything wrong.

Yes, but then the next one comes along and says, yes but 15 years ago the house cost half as much oops:

For me, everyone has to judge that individually anyway, there is no cheaper time than today, but the question is always where and what I buy. We won't get anywhere with generalizations, but I always find it good and helpful – Farilo expressed it this way too – when people mark statements as their opinion and don't pretend they have universal validity.

It is pointless to discuss a financing amount that is not even remotely fixed yet. Internet research is basically useless. Nothing against you, you probably put in effort, but the actual situation will not be reflected.

In the current situation (salary, no children, renovation costs remain fixed), this amount is doable. The bank will finance that. The bank will inform you about the conditions and repayment.

So now to the main point, and you can simulate this wonderfully: calculate the repayment with 50-150k€ more credit (that can happen), calculate 2-4 years of parental allowance/child benefit (that will happen). You can then decide the rest.

If you think it fits, then resolve/clarify the renovation topic regarding the budget and, if necessary, finance your project.

Hello Thomas, back again? How do you like my house or are you just hanging around here?