Assessment of financing for the purchase of a single-family home

for me personally that would be too risky...

1,223 EUR annuity with 4,923 EUR net income already sounds extremely risky.
Not even 25% of household income, many people in Stuttgart surely dream of that (also very, very many renters).

you ask if 2.5 on 30 is a lot of money. Actually very good. The bank just makes a golden nose because you only repay at 1%. A lot of interest flows into the bank’s money bag if you don’t make special repayments etc.

The statement doesn’t make sense like that. One should maybe look at the interest portion of the entire financing and the comparable cold rent. If I can pay 12,000 EUR in rent, then I’d rather pay 6,000 EUR interest forever without repayment and still make a massive profit. If the interest portion is 18,000 EUR, I can repay as fast as I want, I still pay a lot more initially compared to rent.

1,223 EUR annuity with 4,923 EUR net income already sounds extremely risky.

One income, three children, special repayment, vacation, possibly a 4th child...

So I also wonder where the risk is supposed to be. Around here, you pay more rent for a 5-6 person family.

I think the special repayment rate of 10% if you don’t make any special repayments in the first 5 years isn’t such a bad idea. You shouldn’t count on it, but depending on the family situation, a larger inheritance could also wait.

One income, three children, special repayment, vacation, possibly 4th child...

And what are the typical cold rents for 6-person apartments in Stuttgart?

It really seems to me that this is a significant risk minimization compared to renting. Where can you get space for a 6-person family in Stuttgart for this amount of money, and where are you secured against future increases for at least 10 years?

Risks:
- Sole earner*
- Low initial repayment

In my opinion, it is still feasible. I would rather take the 5% for special repayments and then try to make special repayments in the first few years.

*Management position and job security, in my opinion, exclude each other.

We now have a very attractive alternative offer. The loan amount has been reduced by 10k to 390k euros.

Loan 1: 295k euros over 25 years, repayment 1.5%, interest 2.31%, rate 936.63 euros
Loan 2: 95k euros over 15 years, repayment 2%, interest 1.66%, rate 289.75 euros

both with 5% special repayment

Opinions???

A few more remarks about our personal situation. A house of this size would cost about 1,700 euros cold monthly rent.

@ Leite Position und sicher

My employer is a small family-owned asset management company in its x.th generation, so they are competing for me to retire here, unusual in today’s times. Nothing is certain, that’s true, but based on the initial conditions I am very close to "certain."