Ask if home financing is feasible

In your calculation on the expenditure tax, the following are missing:

- childcare costs
- as you yourself already say: electricity (for whatever reason this is not taken into account)
- the dog has liability insurance and you don’t?
.

The dog also damages more than we do But good point, I had liability insurance for 20 years and never once needed it - that’s why it was cancelled. But we’ll just add it now.

Liability insurance: 10 euros per month
Childcare costs: What exactly does that include and how high are the costs?
Electricity: I had included it in the very first post regarding additional costs. Of the 400 euros, roughly 300 euros are additional costs (gas, property tax, water, heating) + electricity: According to people I know who have also built, that amount is enough. I can’t verify that now, I have to rely on it.

What I also forgot on the income side (and can be used well for maintenance and extraordinary costs)

13th + 14th month salary (no bonuses!) - so it is fixed and part of my employment contract...If I recalculate that extra money over 12 months, then my income per month is about 400 euros net higher. But since the money is paid out in November, I did not include it in the calculation. So I have conservatively calculated not only the costs but also the income.

At a low estimate (at the latest with children & house):

- reserves (just for the house the rule of thumb here says) 2.50€ per sqm
- plus reserves for household contents / car
- clothing

Ok, you really have to look at that – especially at the reserves for the house (2.50 per sqm)

600 euros for 2.5 persons/year could be tight – indeed on average we spend less monthly for that.

Don’t sugarcoat the whole thing. First and foremost you have to convince yourself and be honest with yourself. And it can also turn out that it just doesn’t work.

I also have respect for people who manage two adults and child(ren) on less than 1,000€ (excl. fixed costs) per month.

Well, I know many families who certainly have a thousand less per month available and have also built. They certainly did not have equity capital either – I wonder how they do it? 1% repayment would be the only thing I can imagine. That would not be an option for me anyway. And I am not talking about exceptional cases here. Just normal families – he works, she looks after the children, and I am sure he brings home less than I do.

well, I consider abolishing a general meeting to be risky. If 10 € / month is too much. Care costs are high everywhere else. As a comparison, we currently pay about 650 for a full-time place in Rhein Main! If we move, we only have to pay 350 €!

This applies to you to research. It is not an insignificant cost block.

I would be cautious about additional costs and testimonials, you want to buy a used property. Energy can sometimes cost more there.

Yes, I can tell you what they do differently. They forgo. You only go on vacation once and not twice plus ski vacation.

They also give up expensive hobbies and lower their expectations. You had a good reason for yourselves to spend the equity. 17,000 saved in 2 years with the low rent is too little for my taste anyway. That’s just 700 € per month

Well, the HV was not cancelled because 10 euros are too much, but because even 10 euros spent uselessly are 10 euros too many. Look - such an insurance is always a bet on life or on life risks. If you pay 10 euros/month for 20 years and settle a claim once for 200 euros because nothing ever happened, then the bet turned out positive for the insurance. Or vice versa: if you break the neighbor’s marble table after 6 months of insurance, then it’s positive for you...

Why only 17,000 in 2 years? One reason is that I am also in tax class 1 and I had to partly finance my girlfriend through her moving in with me. Now she gets money herself and I calculated yesterday that we can now save 2,000 euros per month. That would be 24,000/year. Sacrifice is no problem. An expensive car is not important to me - it just has to get me from A to B. A vacation of a week in Malle or somewhere similar is enough for me - I have already traveled half the world and accordingly have no deficit - and especially for a house I would like to hold back there. I really have to look at childcare - but that would only come into play 1 year after the birth. If it works out with children at all - you never know beforehand.

k.

I would be careful with additional costs and experience reports, you want to buy a used property. Energy can sometimes cost more there.

Hey - totally forgot - I don't want a used one, but if anything, I want to buy something new

In my opinion, you are calculating all of this a bit too optimistically.

1. Even if you don’t want to hear it: You will not get a property for €150,000. Please take seriously what the construction expert wrote, because her statements are usually quite accurate. And she has a bit more experience than you.
2. What about the incidental costs for the house construction? Building permit, connection fees, surveyor, etc... These can quickly add up to the repeatedly mentioned €35,000-40,000. And even if it should be less, can you also pay that from your own capital? Otherwise, it would not only be a 100% financing but a 110 or 120% financing.

Honestly: Given your circumstances, I would not enter into full financing. There are simply too many unknowns in your calculations. As long as you both work and don’t have a child, it might all work (but even then, personally, I would consider the risk too high). But if you have a child, your calculation no longer works out. You then have about €3,000 income. But with the €1,000 you are currently spending, you will not manage anymore, by far not. The daycare spot was already mentioned. But a child also needs food, clothing, at least an initial supply, a new car seat every few years, etc... Not to mention the expenses when your child starts school. Please do not underestimate that.

And very important: What if not everything goes according to plan? What happens if your wife wants/has to stay at home longer than 1 year because you don’t get a daycare spot immediately? What happens if one of you is sick for more than 6 weeks and only receives sick pay? If the child is sick (then the parent who stays at home also only receives 65% of the salary)? What happens if the car suddenly breaks down?...

I don’t want to spoil your dream, but you should also consider such things and incorporate them into the planning. Be really realistic with your household budget, otherwise, the dream of your own house will be over faster than it really began.

Please don't take it the wrong way, but anyone who hasn't saved equity by 40 won't get anywhere with building a house in the next 20 years... I honestly think 150k for the new build is a bad joke, better get a condo, at least then you get something out of it... As someone already correctly described, it will come down to a 120% financing, no bank in this world will go along with that