Calculation of Property Purchase and Renovation

Oh no! How badly are you doing. Only being able to blow through €3,800 every month – how do people live who maybe only have €3,800 net? And have to buy such expensive pleated blinds. No wonder that nowadays hardly anyone can build/buy if you can’t hold back a bit on living expenses. *Irony off*

You have to turn irony on before you can turn it off. That was an example of something you don’t think about, but that really costs money.

I consider the endeavor very risky and €5,000 today is what €3,800 net was in 2019. But only those who have kids know that, you know.

So good luck and if it fails, thank Karsten.

Do you just want to leave the ground floor empty or do you have plans for it? I would reconsider whether you really want to buy a house where you only use half of the living space and the rest just sits there unused. Or is the plan to "move into the upper floor while renovating/beautifying the ground floor"?

Friends of ours did exactly that. They bought an old house and renovated the ground floor (expensively). That's enough since there are enough rooms downstairs. However, they also have enough money to save up for the renovation of the upper floor "while living there" over the next few years. Besides, the house is in a condition where you can safely use electricity and water upstairs; you could even live there, though very simply.

I consider it absolutely unrealistic to finance a renovation out of a net income of €5,000. And wasn't there even parental leave, meaning less salary, on the horizon? You will never finish. There are guaranteed to be "surprises" waiting for you that cannot be calculated beforehand, not to mention spontaneous heating failures that tend to occur at the worst times. That could turn the whole thing into a fiasco. I would rather finance an honest renovation right from the start. If there happens to be anything left over (haha), it could go into special repayments; in my opinion, there's no risk in borrowing a little too much.

But honestly, with children, I would prefer to look for a simpler property and save the big project "renovating an ancient house on the side" for later.

We also completely renovated a house from 1900. During the renovation, chasms opened up, so in the end only the exterior walls remained. Initially, we also had architects and experts involved, but they couldn’t see the rotted beam structure. We also had corroded steel beams in the basement ceiling. The basement no longer exists now. Under the tiles there was no concrete, but sand – no concrete slab/screed present. (Expensive) surprises will surely happen to you too. I would invest most of the money into the substance (before moving in). Although it is usually invisible, it is essential. So roof, walls, electricity, basement waterproofing, insulation, heating – and as modern as possible. If the cables are replaced, the walls have to be plastered or even skim-coated afterward. If you take down the basement ceiling, you can also plan the floor structure anew and install underfloor heating. If you go for interior insulation (old house, beautiful facade?), that also affects interior walls and windows, and so on and so forth.

Yes, exactly. The upper floor can be made move-in ready faster and more easily and has a layout more suitable for our needs.

The ground floor has a conservatory that is very nice during the warm season. There is also a second bathroom that we can use.

Additionally, the ground floor offers 3 rooms that can be used as an office, hobby room, guest room, or children's room after renovation/improvement. The need and imagination are there. But there is no urgent necessity for it at the moment. We would move from our 4-room rental apartment into the 4-room house with courtyard, garden, and garage. This is initially a gain in quality of life.

There is also a kitchen on the ground floor, but bigger interventions would be necessary there regarding electricity, water, flooring, and room layout (maybe in ten years when all other things are done).

Is there a possibility to make it into a two-family house?
Sounds relatively similar to our property. Through rental income you could manage it more easily.
Example from our house (however, it was already a two-family house):

https://www.hausbau-forum.de/threads/kaufberatung-finanzbewertung-50er-jahre-haus-mit-attr-grund.44573/

We are now investing about 100k in the ground floor with floor plan adjustment/wall breakthroughs, 2 new windows, electricity, new flooring (there was also a surprise here: the floor lies on boards on sand (the concrete ceiling was probably extended with sand at that time to the correct height)), radiators, and pipes in the kitchen.

In the next step, when the tenants change, we will then do the upper floor, which is in better condition regarding electrical wiring.

I consider the undertaking very daring and 5,000 EUR today is what 3,800 net was in 2019. But only those who have children know that, right.

Wow - from which regulars' table was that again? P.S. I a) have three children myself, b) real estate is my job, and c) I already have enough to do with my own properties, so I consider myself quite knowledgeable on the subject. If today you can hardly get by with 3,800€ net after rent/mortgage, I really feel sorry for you.

It was not about whining, but about informing the OP that building a house like this consumes much more than one thinks beforehand. And also a counterstatement to the "it's easy" with the salary...