Buy single-family home - financially feasible?

Hello dear community,

please don’t stone me right away if my ideas seem unrealistic. The planning is currently not really planning, but more of a thought experiment and so far no concrete steps have been taken. I just ask for your honest opinion on whether it would generally be feasible/not feasible, or rather too ambitious, or basically doable but still not advisable.

About us:
I (27 years) and she (25 years) live in Mecklenburg-Vorpommern (ZIP 174xx) with a net income of at least €5500 (me €2800, her €2700), usually about €6500 due to night and weekend shifts. Annual increase of about €100 net/month for the next 5 years. No outstanding loans, etc., credit report should be clean.
Current equity about €65,000, of which about €35,000 is in a depot (which has naturally suffered a lot in recent weeks).
No children yet, but planned within the next 3 years.

Currently renting our student apartment. Have now found a single-family house, 290 sqm living space, 750 sqm plot for €669,000. Very good location, 10 minutes by bike to the university hospital and 10 minutes on foot to the beach. No modernization backlog or investments needed at purchase. Additional purchase costs (no broker commission) could be covered with equity. It would then amount to 100% financing.

Do you think real estate financing is generally feasible, or is this too big a deal and we should wait a bit longer and build up more equity?

Thank you very much!

Hello Fuchsbau,

the financing should currently not be an issue due to the household calculation. I cannot assess the mortgage lending value determination, as I mainly work in the Bavarian area. However, I think that will also be fine! If the [Schufa] is now clean as well, the financing will be approved. I only ask you to consider the following two points: Since children are planned in the next three years, an income will probably be lost. Furthermore, a loan of €669,000 is also associated with a "decent" installment.

Best regards Manuel

What do you want to do with 290sqm of living space? Better to buy a cheaper, smaller house.

Best regards
Sabine

Is there family on site for care, etc.? Otherwise, the desire to have children and possibly services that may no longer be feasible/desirable in the future also affect household income. The rate would certainly be around 2000€ per month. The contribution of parental allowance (with progression clause) to household income is < 2000€. I would rather still use the time and continue to build capital. You can try it out with one of the mortgage calculators to see what 100,000 € more means for your rate.

Do you basically consider real estate financing feasible or is it too big of a deal and we should wait a little longer and build up more equity?

I think it’s too big of a deal for you. Both in terms of the house itself and the financing. It should be manageable with just one income to be really healthy. You practically have no equity for the purchase. If at all, that’s enough for the incidental purchase costs. Who will pay for the new furniture or the new kitchen or the still desired cosmetic repairs? With the property price (and that in MV) it’s rather a 120% loan-to-value financing. Expect a 5% annuity as the bank’s requirement, then you have about €2,800 monthly payment and with 290 sqm of living space, high incidental costs. Property tax, high heating costs, etc. Do yourselves a favor and buy a “normal” property.

Hello, is the house so expensive because of the size and location in meck pom? Why do you need such a size? You work in medicine, who is supposed to manage the house for you? Otherwise, it is in top condition or does it still need further investment (which you don't have). Equity and income for old age are great, the property and financing do not fit. Especially when children come. Then, only money is talked about at the table. Vacation only at the Baltic Sea.