Assessments of Financial Feasibility

Hello everyone. My husband and I want to realize the dream of owning our own home despite the currently high construction costs. We were very lucky to get a municipal plot (650 sqm, costs including ancillary purchase costs and development were about 82,000 euros).

Now about capital and income:
50,000 still have to be paid for the plot, the rest (32k) was paid from equity.
Additional equity 15,000 euros as well as EL ("Muscle mortgage") 10,000 euros.
There is still a buffer for furniture, kitchen.
So a total equity of 47,000 euros. (I don’t know if the so-called personal contribution is included in that)

Income: He, civil servant net 2,600 euros (PKV is already deducted from this)
I, permanently employed in the public sector net 2,300 euros. As soon as children come and I work part-time, I will earn about 1,400 euros.

Expenses: cold rent 860 euros / warm 1,010 euros.
Groceries, electricity, mobile phone, TV, GEZ together 600 euros.
2 cars together monthly including fuel 400 euros.
With our two salaries, we are currently doing very well and still saving for the house.

Financing: property value according to the bank including the plot is 447,000 euros.

With a term of about 30 years, it will be a monthly rate of about 1,400 euros plus building reserves for special repayments. We calculate additional house costs (gas, electricity, insurance, garbage, etc.) 500 euros monthly besides the rate.

Now to the actual question or your assessment ;)

Would you dare to afford this monthly rate (rate alone 1,400) plus recurring fixed costs with a future net total income of 4,000 euros (when children come and part of my salary is lost)? I know this is very individual and depends on the standard of living. According to calculations, it should work for us, but we are currently not yet homeowners and can only plan and hope that this is somewhat realistic. We also have no children yet and can only estimate this, but we will only know how it is with children when they are here.. maybe some have experience and can give a tendency of how he/she feels about the whole thing.
Maybe someone with a similar salary shares what he pays and how he manages it.
Right before signing, you do sweat a bit ;)

P.s. it should just be a friendly exchange of opinions.. whether we dare to do it, we of course have to decide for ourselves, that is clear to us.

Best regards

Your age would still be interesting, because of the term.

Your equity is a bit weak. From a financing below 80%, the interest rates become cheaper.

With the sum 450k - 80k land
370 - 40 incidental construction costs - 40k painter/floor/buffer/exterior
330k / 2k = 160sqm without garage/basement.

On the pro side is your income, which is solid.

Best regards

Hello first of all :-)

...then I'll give my two cents...

Financing: Property value according to the bank including land is 447,000 euros.

I don’t quite understand the statement in terms of content.

Total volume 447,000
- Land 82,000
House including incidental building costs, carport/garage, outdoor facilities, etc. 365,000?

Or how is that meant?
I would want to ask again whether the budget is even sufficient for what you are envisioning.

As for the ratio of net income to monthly installment. As you already say, no one can make the decision for you. There are different opinions on how much percentage of net income the financing installment should be at most. You often read a maximum of 40% of net income. For some, that is already too much.
Regarding your salaries. Do you still have potential to increase?
The crucial question is how much it is worth to you. Some still want to fly on vacation in the summer and go skiing for a week with the kids in Ischgl in the winter, etc. Others say they don’t need that.
Overall definitely doable. But I would definitely question the costs again to see whether it’s even enough for you.

370 - 40 ancillary building costs - 40k painter/floor/buffer/outside 330k / 2k = 160 sqm without garage/cellar.

...calculate again ;-)

...check again ;-)

Oh dear. I'm sorry. Then it is 290/2 = 145 sqm

Hello, if you work part-time you have a net income of €4,000 before child benefits and possible adjustments or subsidies ([glaub bei Beamten gibt’s da was]). Whether you want to pay a consistent rate for 30 years plus volatile additional costs is something you have to decide. Is the interest rate fixed for 30 years? If yes, it is certain, the rate (I equate it with rent) is fixed on the expense side.