basementmedia
2012-06-08 23:08:59
- #1
Hello everyone,
I am currently feverishly calculating whether we can afford a house and somehow can’t believe what I have just added up.
On the one hand, my "What does a car cost" research showed that a car (including depreciation, taxes, etc.) probably costs around 400 euros per month, so with two cars we would be at about 800.
My "What does a house cost" research showed that a homeowner’s costs are about 500 euros per month (taxes/insurance/sewage/electricity/heating/chimney sweep/etc.).
Then there are my estimated grocery costs of about 500 euros.
So we would be at a total amount of 1800 euros!
But that’s not nearly everything yet: Then there are the disability insurance (me + wife), accident insurance (me + wife + child 1 + child 2), family liability insurance, broadcasting fee, mobile phone, kindergarten fees, and so on and so forth. For us, that adds up to about 650 euros.
So that puts us at monthly expenses of 2450 euros.
And we haven’t even factored in that sometimes you want to go out (cinema, pub, etc.).
If you now also want to assume that you want to pay off a rate of about 800 euros per month for a standard house of about 150-160 sqm (that’s the minimum I must pay if I ever want to be debt-free before retirement), then the monthly net income would have to be 3250 euros!
But I know a lot of people (myself included) who don’t earn 3250 euros NET but still built a house and apparently get by halfway decently.
So the question would be: Where is the error in the above calculation? Or is it all correct and I shouldn’t build a house?
I am grateful for any tips and a lively discussion.
Kind regards
Daniel
I am currently feverishly calculating whether we can afford a house and somehow can’t believe what I have just added up.
On the one hand, my "What does a car cost" research showed that a car (including depreciation, taxes, etc.) probably costs around 400 euros per month, so with two cars we would be at about 800.
My "What does a house cost" research showed that a homeowner’s costs are about 500 euros per month (taxes/insurance/sewage/electricity/heating/chimney sweep/etc.).
Then there are my estimated grocery costs of about 500 euros.
So we would be at a total amount of 1800 euros!
But that’s not nearly everything yet: Then there are the disability insurance (me + wife), accident insurance (me + wife + child 1 + child 2), family liability insurance, broadcasting fee, mobile phone, kindergarten fees, and so on and so forth. For us, that adds up to about 650 euros.
So that puts us at monthly expenses of 2450 euros.
And we haven’t even factored in that sometimes you want to go out (cinema, pub, etc.).
If you now also want to assume that you want to pay off a rate of about 800 euros per month for a standard house of about 150-160 sqm (that’s the minimum I must pay if I ever want to be debt-free before retirement), then the monthly net income would have to be 3250 euros!
But I know a lot of people (myself included) who don’t earn 3250 euros NET but still built a house and apparently get by halfway decently.
So the question would be: Where is the error in the above calculation? Or is it all correct and I shouldn’t build a house?
I am grateful for any tips and a lively discussion.
Kind regards
Daniel