Assessment of financing scope with 4620 euros net

My wife recently [...] shopped for clothes alone for almost €1,000.

Better to buy a Rolex or Omega or stocks instead.

What’s the deal with the app and Excel? At the end of the month or after 3-4 months there must be a surplus X in the account.

You won’t need an app or Excel because you have lived within your means. That’s fine, because everyone should do things as they like. However, not everyone saves on the house. Some save on consumption (watches and clothes) and live in houses they can comfortably finance and cut back a bit on watches and clothes. To get an overview of what you consume and where there is potential to save, it makes sense to create a spreadsheet. If only because you then have to deal with the topic explicitly.

In the end, I also found out that I only need half as many shirts per year and drive to the office with an older car. But where would we end up if everyone set the same priorities.

Of course, you can buy Rolex watches and clothes or whatever, if you regularly have money left over each month. That's great.

But may I remind the thread starter, is he still around?
He had indicated a surplus of €3569 in his initial post, but in reality it was €850. Almost €3000 vanished somewhere every month without him knowing where. Yes, the good man urgently needs a better overview of his finances in Excel. And yes, there is definitely potential for savings, without which building a house will never be possible for him.

What should Excel do? Provide an overview of the income and expenditure situation within a realistic framework... A good way to get finances under control. Especially if you want to build or buy. Unfortunately, not everyone has such an incredibly large amount of money that they don’t have to watch their finances.

This has nothing to do with the amount of income! I just meant that after 2-3 years in working life with a fixed monthly income, one should actually have a sense of how much one spends on average per month! This results simply from the absolute amount of money saved after a certain period. Since I myself have been advising on construction financing for years, I have my experience: if no savings are made beforehand, an Excel sheet usually doesn’t really help either. Because it is incredibly difficult to change one’s habits from one day to the next and suddenly focus all expenses entirely on the home... and do so for the next 20-30 years. When homebuilders with relatively good incomes and practically no equity sit with me, I look very closely and really ask explicitly why no equity has been saved so far.

When home builders with relatively good incomes and virtually no equity sit in front of me, I look very closely and really explicitly ask why no equity has been accumulated so far.

Aha, and what is the difference from an Excel list except for the spoken word?

Well, if the desire for a homeownership simply wasn't there before and someone is single and just finished their studies, then I also think it's absolutely okay that they blew their money. You just can't complain when maybe two years later it’s not quite enough for the dream house. To immediately assume that the same person cannot change their spending behavior is a bit too pessimistic.

Good morning,

so, a lot has already been said...

but with an income of over €4600 net per month, when you apply for financing of €600,000, the first question will be, what did you do with the money before?

then we take a step back, so you have saved about €20,000 in 2 years, which is very commendable.
now with the 2nd child, the 2nd income will initially disappear and will only be partially replaced by parental allowance.
Additional costs will arise (baby room, initial equipment, etc.).

that means tying yourself to a property with a high loan now would be rather counterproductive, and maybe even poison for the relationship!

What speaks against staying in the apartment for another 1-2 years, trying to save another €1000 per month, and then looking again, maybe opportunities will arise? Either a house is sold through informal channels, without a broker, and without inflated markups?

Another problem from today's perspective: rising interest rates
1) we are moving towards an interest rate of 2% for 10 years (for full financing! so 100%, but you even need more for incidental purchase costs!)
(we are not there yet, but it won’t be long)
2) No/little equity + very long fixed interest period: and suddenly we are more likely at 3%, and if we only take the minimum repayment required by banks (often 2%), then with a loan amount of €600,000, the monthly burden would be €2,500!!! and that would only be the financing installment. Heating costs, electricity, telephone, property tax, garbage collection and so on... then you’re already at €3,000

and then the question would be, what do you want to live on?

currently you can still live cheaply = still a very good opportunity to save and put money aside.

as a goal I would set here: to build up 10% equity, i.e. for €500,000 = at least €50,000, for €600,000 = at least €60,000 to save

the next point would then be: how big does it have to be?
the new child will live with you for a very long time, how long will the 17-year-old live with you? What are their goals/plans? Apprenticeship? Studies?
It might be that in 3 years they will move out, maybe in 5 or 8...

then I would choose and plan the house/apartment accordingly.
Because what use do I have for 2 large children's rooms if one of them will be 90% empty for the next 30 years?

PS. there are also small houses in Heilbronn/surroundings (ok, with also small plots) as existing properties that are well maintained, costing around €400,000..
Condos with about 80 sqm probably start at €300,000...

so you can probably finance €550,000-600,000 with €4600 (if you have more equity!) but you don’t have to, because that is too much burden for the income. Nothing must happen, no one must lose the job, no long-term illness or whatever
then better to finance rather €400,000-450,000 max with that income, and also live a bit and not just work to just pay off the house.