Can we afford / finance a house?

Hello everyone,
we currently live with 2 children in a rented apartment and are still at the very beginning of our considerations. My husband inherited about €200,000. Otherwise, we only have one income (just under €2,500, fixed-term contract until 2025). I studied teaching, am currently at home with the 2nd child, and will start my teacher traineeship (Referendariat) in February 2021 and then also have a (initially quite small) income.

That’s the rough outline. Now my question: Would we even get a loan under these circumstances at the moment? What do you think, can we afford it?

Thanks and have a nice weekend!

Depends on where you live. In this situation, I would recommend a used condo. A small financing might be enough.

Child benefit is added on top? Without further information, your question is hardly answerable. It already starts with the area where you live. How much do you have left per month, how much rent do you pay?

Thank you very much in advance for the answers. To add: there is an additional €400 in [Kindergeld] and currently €250 in [Familiengeld] (still for 2 more years). We currently pay €760/around €860 (cold/warm) rent, live in a small town in Bavaria and want to move to the surrounding area. We wish for a garden for the children, which is why a house is more suitable. The real estate market here is very sparse and it is more realistic, for example, to build a prefabricated house than to buy a suitable and affordable existing house.

You are missing approximately 400,000 euros. These would need to be financed and repaid monthly at about 1,400 euros. For this, you need a family income of about 5,000 euros. You currently have about 3,000, but if you work, it should work out.

So you have a very low household income of currently €2,900. However, the trend is rising in the future.

In addition, you have already proven in the past that you can afford housing expenses of €860.

If you can use the full €200,000 inheritance, then in my opinion it should be enough for a loan of €200,000 under the current circumstances.

€200,000 with an annuity of 3.5% would be about €580 per month to the bank plus additional costs of approximately €2 x 140 sqm = €280.

For a total investment of €400,000, however, it is rather unlikely to be a new building. But it should be enough for a used single-family house in your region, right?