berni_z
2019-08-27 21:01:42
- #1
Hello,
after quietly reading along for a few weeks, I would like to ask for your assessment regarding the question currently occupying us about the possible financing of a home.
General information about us:
We (EF: 36 years / EM: 40 years) are married and have 2 children aged 5 and 7. We are both employed in Frankfurt (EF: part-time 64% / EM: full-time 100% 40h) and have been renting for almost 4 years in a "suburb" of Frankfurt (semi-detached house, each approx. 20 minutes to the office in Frankfurt). No further children are planned.
In addition to the employee job, I (EM) am also partly self-employed on the side.
We moved to the Rhine-Main area for professional reasons. Unfortunately, we do not have any other family here locally.
We have not really dealt seriously with the purchase of a home in the past. When we last moved in 2016, we looked very superficially at portals for existing houses, but at that time gave up due to the already unrealistic prices for even heavily in-need-of-renovation properties. We did not consider new builds at all.
Moreover, we wanted to maintain a certain flexibility in the past. This has now changed and is no longer a priority for us in view of the children.
No gifts or inheritances are expected from the family, as we both come from relatively down-to-earth backgrounds.
General information about us:
Asset situation
[*
Expense situation
Savings:
[/LIST]
Thank you in advance for evaluations, suggestions, and assessments!
Best regards
after quietly reading along for a few weeks, I would like to ask for your assessment regarding the question currently occupying us about the possible financing of a home.
General information about us:
We (EF: 36 years / EM: 40 years) are married and have 2 children aged 5 and 7. We are both employed in Frankfurt (EF: part-time 64% / EM: full-time 100% 40h) and have been renting for almost 4 years in a "suburb" of Frankfurt (semi-detached house, each approx. 20 minutes to the office in Frankfurt). No further children are planned.
In addition to the employee job, I (EM) am also partly self-employed on the side.
We moved to the Rhine-Main area for professional reasons. Unfortunately, we do not have any other family here locally.
We have not really dealt seriously with the purchase of a home in the past. When we last moved in 2016, we looked very superficially at portals for existing houses, but at that time gave up due to the already unrealistic prices for even heavily in-need-of-renovation properties. We did not consider new builds at all.
Moreover, we wanted to maintain a certain flexibility in the past. This has now changed and is no longer a priority for us in view of the children.
No gifts or inheritances are expected from the family, as we both come from relatively down-to-earth backgrounds.
General information about us:
[*
- How old are you? EM: 40 years / EF: 36 years
[*]Do you have children? Yes, 2 (7 years and 5 years)
[*]Are more children planned? No further children planned.
[*]What do you do professionally? Employed. EM also freelance on the side.
[*]Are you employed, self-employed, retired, housewife, househusband, etc.? Employed.
[*]How many hours do you work? EM: 40 hrs / EF: 25 hrs.
Income and asset situation:
Income
[*]What income do you have per month (net after tax)?
[LIST]
[*]Employment: EM: EUR 6,100 (plus approx. EUR 3,000 Christmas bonus, from 2020: 2-3% p.a. inflation adjustment)
[*]Employment: EF: EUR 2,450
[*]Income tax deduction based on tax class 4 factor
[*]Income from self-employment irregular, approx. EUR 4,200 p.a. / approx. EUR 350 p.m.
[*]Income from rental (currently cash after housing costs and annuity, before special property reserves and rental loss risk): EUR -250 after tax (from 10/2019: EUR +450 after tax)
[*]How much child benefit do you receive per month? EUR 400
[*]Total income without one-time payments: EUR 9,050
[*]plus annual one-time payment of EUR 3,000
[*]from 10/2019: EUR +700 from rental
[*]from 01/2020 annually: EUR +100-200 p.m. from EM employment
Asset situation
[*
- How much equity do you have?
[LIST]
[*]Stocks/funds: approx. EUR 60,000
[*]Cash: approx. EUR 30,000
[*]Real estate (net): approx. EUR 144,000
[LIST]
[*]Condominium 01: Value EUR 210,000 / Loan EUR 122,000 (current loan-to-value: 58%)
[*]Condominium 02: Value EUR 90,000 / Loan EUR 69,000 (current loan-to-value: 77%)
[*]Condominium 03: Value EUR 35,000 / Loan EUR 0 (current loan-to-value: 0%)
[*]Real estate repayment p.m.: EUR 950 (repayment portion of annuity loan installments for 07/2019)
[*]Total assets: approx. EUR 234,000
[*
- Equity substitute:
[*]After consultation with the bank financing the loans for Condominium 01, a subsequent loan on Condominium 01 of approx. EUR 35,000 would be possible (conditions would be for a mortgage loan).
[*]Condominium 03 is unencumbered, meaning in the best case an equity substitute of EUR 35,000 x 80% = EUR 28,000 would be feasible here.
Expense situation
[*
- Current gross rent: EUR 1,850 (EUR 1,450 cold rent)
[*]Private health insurance for children: EUR 310
[*]Daycare/school fees: EUR 900
[*]Food/drugstore: EUR 900
[*]Clubs: EUR 50
[*]Telephone, internet, mobile: EUR 90
[*]2 cars, paid off: EUR 430
[LIST]
[*]of which petrol: EUR 230
[*]of which insurance/tax/repairs: EUR 200
[*]Other insurance (liability/home contents/long-term care/additional accident/disability/life insurance): EUR 140
[*]Vacations: EUR 600
[*]Cleaning service: EUR 200
[*]Canteen: EUR 360
[*]Miscellaneous (clothing, etc.): EUR 370
[*]Total expenses: EUR 6,400
Savings:
[*
- Stocks/funds: EUR 1,000
[*]Cash: EUR 1,650 (from 10/2019: EUR 2,500)
[*]Total savings: EUR 2,650 (from 10/2019: EUR 3,350)
Income and expense totals:
[*]Total income: EUR 9,050
[*]Total expenses: EUR 6,400
[*]Balance: EUR 2,650 (plus rent savings of EUR 1,450 if buying)
Thus, the following questions arise for us:
[*]In the above situation, what would be a maximum "healthy" annuity for the purchase of a home?
[*]Since currently a relatively large amount of equity is tied up in real estate and we do not intend to sell the condominiums, the following questions arise for us:
[LIST]
[*]Up to what amount would you recommend a real estate loan, considering our ages (40 / 36)? The property should be debt-free at the latest upon retirement (preferably already by age 58).
[*]Would it be more advantageous
[LIST]
[*]to buy now with possibly low equity injection, or
[*]to save cash for an additional 2-3 years in order to achieve approx. 80% financing and then buy?
[/LIST]
Thank you in advance for evaluations, suggestions, and assessments!
Best regards