Assessment financing 425k, equity 200k, net 5k - unmarried

Hello!

I’m almost afraid to say it, but: We have a notary appointment (mid-April)!

Even though I have been calculating our situation for weeks and months, I would like to get your opinion on it and possibly also receive a few comments on additional costs or things we might have overlooked.

General information about us:

[*]How old are you? 30/31
[*]Do you have children? no
[*]Are children planned? no
[*]What do you do professionally? both employed in the public sector
[*]How many hours do you work? both full-time/39.5

Income and asset situation:

[*]What income do you have (net)? 5,200 € + annual special payments, which are hardly worth mentioning
[*]How much equity do you have? 200,000 € (gift from his mother) + insignificant own "savings" (my reason: studies, consumption, stupid decisions... and him... no idea, probably no reason to save much due to family background)
[*]How much equity do you want to invest in the house project? about 160,000 € in the loan according to current bank offers, rest for renovations/kitchen

Expenditure situation:

Mobility costs (reserves come later):

[*]Monthly ticket for bus and train 130 €
[*]Fixed vehicle costs (tax, insurance, TÜV, ADAC) 142 €
[*]Monthly parking ticket 10 €
[*]Fuel 300 €

Subtotal: 590 €

Insurance costs:

[*]Liability insurance 6 €
[*]Term life insurance we calculate about 50 € (is that plausible?)
[*]Disability insurance included in my "pension insurance" (pension fund), not existing for him
[*]Household insurance 13 € (we can’t yet really assess if/how much it will increase in the house, currently insured for 150,000 €)
[*]Legal expenses insurance 20 €
[*]Other insurances 3 € hunting liability insurance
[*]Building insurance 35 € (is that plausible?)

Subtotal: 130 €

Living costs + reserves:

[*]Groceries + restaurants + drugstore 500 €
[*]Food at work 200 €
[*]Mobile costs combined 15 €
[*]Internet, broadcasting fee, Netflix, Amazon etc. 81 €
[*]Pocket money (for clothes and other consumption) 400 €
[*]Car reserves 100 €
[*]House reserves 200 €
[*]Vacation 200 €
[*]Gifts 50 €

Subtotal: 1,750 €

Additional house costs (we cannot yet estimate these well, some numbers rounded from the previous owner, others researched):

[*]Garbage fee 13 €
[*]Chimney sweep 7 €
[*]Heating maintenance 20 €
[*]Water/sewage 40 €
[*]Electricity 100 €
[*]Property tax 38 €
[*]Street cleaning 25 €
[*]Heating (heating oil) 100 €
[*]Purchases for the house 100 €

Subtotal: 450 €

Savings contributions:

[*]Securities 350 €
[*]Savings plan 100 €
[*]Cash savings 200 €
[*]Instant access savings account 100 €

Subtotal: 750 €

Income and expenditure totals:

[*]Total income 5,200 €
[*]Total expenses 590 + 130 + 1,750 + 450 + 750 = 3,670 €
[*]Balance for loan installment 1,530 €

General information about the property:

[*]How large is the plot? 540 m²
[*]What is the standard land value? 215 €/m²
[*]New build, old building (year built), house type? Renovated old building, single-family house (built in ’61, renovated 2018)
[*]Garages? 3
[*]How large is the house? (living area / usable area) 120m²/170m²

Construction or purchase costs:

[*]Purchase price 530,000 €
[*]Additional purchase costs 55,000 €
[*]Total costs 585,000 €

Other costs:

[*]Kitchen costs 15,000 € (from equity)
[*]Renovation costs/terrace 35,000 € (from equity)

Cost breakdown:

[*]Total costs 585,000 €
[*]Deductible equity 160,000 €
[*]Loan amount 425,000 €

We currently have the following offers from banks:

[*]Full repayment: Allianz, 1.51%, 30 years fixed interest, 2.66% repayment, 1,473 € installment
[*]19 years: ING, 1.21%, 19 years fixed interest, 2% repayment, 1,141 € installment, remaining debt after 20 years around 245,000 €
[*]30 years: Allianz, 1.61%, 30 years fixed interest, 2% repayment, 1,276 € installment, remaining debt after 30 years around 100,000 €

We are still waiting for offers with several building blocks: 100k for 10 years with about 0.7% interest and the rest for 20 or 30 years

I can’t yet quite assess whether a smaller remaining debt or a smaller rate is more important to me...

My questions as indicated above:
Did we forget anything?
Are the additional costs plausible?

And: Are there unmarried couples here who have made a partnership agreement? What does it regulate for you? Can I, as the partner with the smaller share, secure myself so that the house does not automatically go to his mother upon his death?
The land register is clear so far, because of his equity he has 2/3, I have 1/3, but as I have read, you should still conclude a private law contract... we still have a lawyer appointment, but prior experiences would be good.

Thanks for going through this and best regards

PS: Yes, I had a thread where I was not supposed to be entered in the land register, but one year and a long delay later (I still like him ;) ), there was the insight that I am not so wrong after all....
Link to the old thread would be: url see above + threads/dem-partner-miete-zahlen-wie.33631

everything looks plausible. We will receive our financing agreement of 515k tomorrow with only 20k equity and have a similar net income as you, but with one more child. So financing-wise everything is chic for you (got 200k from the mother, I never know whether to cry or laugh... that would make so many things so much easier... oh well).

Regarding the contractual matters, I can't say anything due to lack of knowledge. However, I will follow along here, as this question will concern us soon as well.

If you want to finance over 30 years, I would choose the full amortization option; with the other variants, the remaining debt would be too high for me.

Where can you get hunting liability insurance for 3€ a month? Does that only cover the legal minimum amount? That would be way too little for me considering the possible damages... and are there no other costs for the hobby besides that? Even as a non-leaseholder, that’s not exactly cheap...

How important is a long fixed interest period to you and how much does it really need to be? If you lock in the interest rate for that long, it will cost you a lot of money, and with a repayment of €1400-€1500 and an interest rate of, say, 1.1% over 15 years, you can look forward to the remaining debt with ease. Given your income, I see little reason to repay only €1100 or €1200.

What else I notice... €300 for fuel is extremely high. That’s more than 200 liters per month. Does the car run that much or do you have an American pickup with the environmentally unfriendly 6-liter big block? Regardless of which option it is, €100 set aside for the car definitely doesn’t fit with that.

Regarding the savings rates... how is the building savings contract (Bausparvertrag) interest-bearing and can you use it for the property? What is this savings plan? What is the idea behind currently saving long-term in a day-to-day account? The reserves for car/house/etc. are added there, but saving for the sake of saving makes no sense with the current credit interest rates.

With your income, I see little reason to repay with 1100 or 1200€.

300€ for fuel is extremely much. That’s more than 200 liters per month. 100€ reserve for the car definitely doesn’t fit with that.

Regarding the savings rates... how is the home savings contract interest-bearing and can you use it for the property? What is this savings plan? What is the idea behind currently saving long-term in a daily allowance account?

Quoting in pieces on the phone somehow is more difficult...

About the loan installment:
We chose the 1200€ because with the housing/house ancillary costs we come to about 2000€; with a 1500€ installment, a full income would go solely for housing, and I can’t sleep well with that.

About fuel/car reserve:
We will have an 80km commute per day in the future. I drive 30km to/from the train station (=600km per month, roughly 72€), he takes the route by motorcycle (it is 4 times as far as now, currently about 30€ per month, so 120€). So 200€ for commuting. And 100€ for everyday trips and excursions with the Bulli (which, unfortunately, really gulps like an American). You could of course also count that as vacation and let the 100€ benefit the reserves. Or just increase the reserves...

Home savings contracts are not indicated at all; they are already deducted from both of our salaries together with asset-building benefits. Both are old contracts that we don’t touch; it doesn’t help to include them.

What you mean are really cash envelopes that are being “saved” there.
He saves there for bigger purchases; I do the same on the daily allowance account.

The savings plan is also still mine; as I already wrote somewhere above, I didn’t have my money under control until recently. The savings plan was my forced saving because I can’t touch it for 3 years (at 0.01% or so, but it was simply about starting at all).
Contrary to expectations, I also didn’t touch my ETFs (that’s 300€ from the securities position), so I also add the 3,600€ that the savings plan brings me in a year to the depot.

I come from completely different family circumstances than he does; there are only debts to inherit; I have to watch out for myself and therefore want to keep my savings rate of 500€ as much as possible. Partly available (daily allowance account), partly in the depot. And of course, the house is also an investment...

Where is there hunting liability insurance for 3€ a month? Is only the statutory minimum sum covered there?

That’s his area... no idea what is included. But he currently also has no hunting opportunity. If he may hunt somewhere once, it comes out of pocket money. The last rifle, for example, came from his envelopes. If he shoots something, it comes out of the food budget.

Got 200k from my mother, I never know whether to cry or laugh... that would make so much easier...

You know, sometimes I don’t know either ;)

Can I protect myself as a partner with a smaller share to ensure that the house does not immediately go to Mom upon his death?

Marry. He can also make a will, but then you will pay exorbitant inheritance tax. He would also if you die.