Building a house - building savings contract with bad interest rates

well that should at least be enough for a rate of 600 - 700€.

That corresponds with a loan of 200,000€ at 2.5% over 25 years to a remaining debt of 82,000€ in the end.
If you work again and special repayments are possible, then this sum works out. But where do the other 175,000€ come from?

700x12= 8400/year
2.5% interest + 2% repayment = 4.5%
Makes a possible loan of 187,000€

Further desire for children is not taken into account.

Thank you for at least partly responding seriously. Of course, without family support that would be totally naive

If you want people to give meaningful advice, you also have to disclose all information. Just compare with the other inquiries; some include financial disclosure oaths, and from you a "my employer can’t go bankrupt and I request the rest from my relatives." Meanwhile, you have provided a few details.

Hello Chipre,

You should go to a bank and check how much credit you will be granted without any help from relatives, then you will have a realistic amount, although this will probably not differ significantly from the €187K mentioned by . With the numbers you have expressed by now, in my opinion, it is rather heading towards a condominium, and that does not have to be a bad thing. Still better than upsetting/burdening the relatives because you overextended yourself with the house purchase.

If you actually receive a larger sum as a gift from relatives (only gifted money, interest-free loans won’t help you), you can add this to your equity capital. But you can only plan with it once it is in your account. Before that, it is a pipe dream.

Best regards
Dirk Grafe

Oh God, Schemelino My husband works 30 hours at €16.20 (€2106 gross) and I will work 24 hours at €15.45 (€1606 gross) starting 1.8.

Yes, that's true... About our work situation: I will work full-time again, 40 hours, starting in March.

Hmm, so what is it now? 24 hours starting 1.8. or full-time 40 hours starting in March??

With your total income, I would look for houses that are at least €150,000 cheaper. With €3700 gross, that would be way too risky for me. You would probably only be able to finance the mortgage payment and the "normal" living expenses.

At some point, the son will go to daycare and childcare costs will arise, then when the 2nd child comes, part of the income will disappear again. What if the car breaks down or repairs on other things are necessary? How about vacations and other leisure activities? Life does not only consist of mortgage payments and additional costs...

If you don't get a large part gifted or inherit now, then with your circumstances I would not take the risk of working only for a house and nothing else anymore.

As some have already written here, an interest-free loan also has to be repaid at some point.

For me personally, €360,000 is too much right now – but that only concerns me. You, on the other hand, are still relatively young and have an estimated 40 years left to pay off!

If I remember back now (I’m 40), we were also looking for houses 13 or 14 years ago (at your age), and we found one... not quite finished yet but okay, price €120,000. Interest rates were high back then, equity was low, and of course – everyone advised against it. Years later... next house, this time €180,000 purchase price – same story. Too little equity, everyone advised against it – keep saving. Yes, and it went on and on like that.

In the meantime, I am 40, we have a bit of equity now, but house prices have... I don’t want to say doubled but are close. And I could kick myself! The house from 15 years ago would probably be paid off by now (wages have increased, etc.) and we would have built up more equity through that than what would have been possible by saving. And even if we as a couple had separated... I think we would have made a really good profit if we sold it now. But who really knows that in advance.

This is just meant to be a suggestion – personally, €360K is too much for me. But if I could turn back time... I can only laugh at the house priced at €120K today – back then it was not "doable".

Personally, €360,000 would be too much for me now – but that only applies to me. You, on the other hand, are still relatively young and have an estimated 40 years left to pay off!

If I recall now (I’m 40), 13 or 14 years ago (at your age) we were also looking for houses, found one... not completely finished yet but okay, price €120,000. The interest rates were high back then, little equity, and of course – everyone advised against it. Years later... next house, this time €180,000 purchase price – same story. Too little equity, everyone advised against it – keep saving. Yes, and it went on and on like that.

By now I’m 40, we have a bit of equity but the house prices have... I don’t want to say doubled but close to it. And I could kick myself in the rear! The house from 15 years ago would probably be paid off by now (wages have risen, etc.) and we would have built up more equity this way than would have been possible by saving. And even if we had separated as a couple... I think we would have made a really good profit if we sold at the current time. But who knows that in advance.

This is meant to be just a suggestion – personally, €360K is too much for me. But if I could turn back time... that house at €120K makes me laugh today – back then it was not “feasible”.

The idea is not stupid! The question is: With the current high price level... how long can this continue???