Budget calculation for additional income from self-employment

  • Erstellt am 2019-05-09 18:07:06

Ralf_1980

2019-05-09 19:54:58
  • #1
Hello,

I am happy to provide a few more details:

My monthly income: 4,000 euros net
My wife's monthly income: 500 euros net
Child benefit 200 euros / month

My income of 4K / month is income from employment under tax class 4, which means I receive several thousand euros tax refund every year. Since I have no loans or similar to repay, and I am not really dependent on the money, there has been no need for me to switch to class 3 so far. I am very conservative and my money is in a daily allowance account, and there are no interest anyway. If we were to repay a loan in the future, I would certainly switch. My wife earns so little because she is getting her PhD and takes care of our son. In a few years she will certainly work full-time again and earn more.

In cash we have about 115K, and two building savings contracts where about 10K is saved, and they have been running for over 7 years. We have no debts or obligations. We have 2 cars (7 and 1 year old), and both are paid off.

We are getting the property as a gift, but we have to demolish an old building, which will cost about 35K. 235 sqm, in Koblenz, directly on the Rhine.

We have 1 child and the family planning is complete. My wife and I are both 39, our son soon.

We would like to build a solid house, which should cost us about 320K. There are also 80K construction incidental costs. The house should have about 160 sqm. Gala work, interior painting, and interior fittings are not yet included here.

I estimate we want to borrow 350K in total from the bank. No idea if we will get this.
Now about 300 euros per month (after taxes) come from the mentioned freelance activity. Should we include this or not?

Also, do you think the bank will give us the loan? Will further information be needed?

Regards
Ralf
 

Noelmaxim

2019-05-09 20:19:18
  • #2


Everything fits wonderfully, good, sustainable income, low loan-to-value ratio due to good equity and the paid-off plot, burden based on an income that is even lower due to unfavorable tax class and completed family planning.

For me, there is nothing to consider, absolutely nothing, at least not whether I can and want to realize the project. It is definitely feasible and the credit approval is already positively confirmed.
 

HilfeHilfe

2019-05-10 01:13:03
  • #3
Yes, that fits. Mentally set aside the 300€.
 

Altai

2019-05-10 08:40:51
  • #4
A 160m² house on a 235m² plot?

I also consider the finances to be consistent, and I would view the extra income as a buffer, like the previous writers.
 

Ralf_1980

2019-05-10 08:45:46
  • #5
Hello Altai,

the house situation is a bit more complicated. I will try to explain:

It is a floodplain area. Residential units are not allowed on the ground floor, but must be on the first floor and above.

We do not want a traditional basement, but there will be a kind of basement on the ground floor that we can use as parking for 3 cars. This is typical in this area for new buildings.

The remaining 160 sqm² are to be distributed over 2 floors.

The property also has value for us because directly adjacent is a approx. 800 sqm² plot with a multi-family house, large garden, etc., which fully belongs to my wife's family and is also inhabited by them.

So, yes, it is small, but I hope it still works

Best regards Ralf
 

Altai

2019-05-10 09:09:00
  • #6
Then good luck!
 

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