Building financing 400,000€ feasible?

Hello! We would like to buy an existing property, but since the market is currently quite thin, prices are correspondingly high... We have already used some calculators online and run a few numbers, but we are still not 100% sure if our plan could actually work. We are both 30 and have permanent jobs in the industry. Our current monthly net income is approximately €5200, although this could almost halve for about 1-2 years within the next 2-3 years. Our equity is currently about €40,000, with an additional €2,000 being added every month. The question now is: is it feasible for us to pay off a property costing €400,000 within about 20 years, or is this plan rather unrealistic?

Hello! We would like to buy an existing property, but since the market is currently quite thin, prices are accordingly high... We have already used some calculators online and worked through a few things, but we are still not 100% sure if our plan could actually work.

We are both 30 and have permanent jobs in the industry. Our current monthly net income is approximately €5200, although this could almost halve for about 1-2 years within the next 2-3 years. Our equity is currently around €40,000, with €2,000 added each month.

The question now is: is it doable for us to pay off a property worth €400,000 within about 20 years, or is this plan rather unrealistic?

Is the 1-2 years parental leave? Then it doesn’t halve. If no parental leave, then forget about financing. Otherwise, the rate is no longer affordable.

Yes, that would be parental leave.

The good news is, you still get money during parental leave. The bad news is, childcare can be very expensive. In Karlsruhe, we would have paid almost €800 for a daycare spot if we had gotten one, now we’re quite happy with €240 for the childminder. It should be noted that the other half is paid by the youth welfare office in the Palatinate.

Your net income is good, only your equity is bad... And €400,000 for an existing property is already something... But is it really worth it? Or is it just so expensive because of high demand?

The question now is: is it feasible for us to pay off a property costing €400,000 within about 20 years, or is this plan rather unrealistic.

Yes, if you can afford a monthly payment of around €2,300 over the entire term.

I would wait until after parental leave, when the problem of the missing half income has been resolved.

Hello! We would like to buy an existing property, but since the market is currently quite thin, prices are correspondingly high... We have already used some calculators online and calculated a few things, but we are still not 100% sure if our plan could actually work.

We are both 30 and have permanent employment in the industry. Our current monthly net income is approximately €5200, although this could almost be halved for about 1-2 years within the next 2-3 years. Our equity is currently around €40,000, with €2,000 being added every month.

The question now is: is it feasible for us to pay off a property for €400,000 within about 20 years, or is this plan rather unrealistic.

Hello

the banks would finance you now. However, they always check the current situation; the future, parental leave etc. are disregarded. The customer is left alone and has to think for themselves about what they are getting into.

I can only confirm that childcare is also expensive and your wife certainly wants to work part-time. That definitely means a loss of income. The equity goes towards additional costs (notary, property transfer tax, broker). You have no buffer for renovation, car breakdown, new furniture, etc.

If you had said max. 300, then I would say yes, because with that income you do save some money on the side. At 400k I say it needs to be well considered on your side. Personally, I would not do it.