Condominium purchase - feasibility study

Hello,

we would like to ask for your assessment whether our planned condominium purchase + financing is consistent or if the risks are too high.

Regarding the facts:

[*]35/30 years old (full-time/part-time)
= 4600 euros net (performance-based elements excluded, although relatively certain)


[*]1 child (no further planned)
[*]monthly costs approx. 1800 euros based on household budget of the last 2 years
(incl. "vacation savings" + previous average costs raised slightly for safety)


[*]condominium + parking spaces 540,000 euros (unfortunately "normal" price)
[*]equity 230,000 euros (safety buffer 20,000 euros)
[*]equity use approx. 195,000 euros



[*]loan is approx. 385,000 euros - after first check with financial advisor the condominium
thus costs approx. 650,000 euros (incl. interest, incidental costs & residual debt of approx. 70,000 euros)
[*]repayment rate 1350 euros (25 years)

For the condominium we have additionally planned 27,000 euros (will be less - that’s the hope - but we want to calculate the worst-case scenario):



The move will be done by ourselves.


It would be financially feasible, but the total price is quite heavy in my opinion. Missing are special equipment items, we have 2-3 wishes there.


How do you rate this? Anything forgotten?


Thank you.

Due to the high available equity, I find that mathematically still okay. The incidental purchase costs will not be without, but I assume you have considered them as well. Hopefully all without a broker.

If the location is worth the money to you, why not. Don’t worry about the interest costs. They are incredibly low today and completely reasonable compared to the regular cold rent.

What is the current cold or warm rent?

The additional costs are about 44,000 euros. This is already included in the 650k. The broker fee is calculated into the condominium price.

The current cold rent is 750 euros. Our current apartment is about 20 km away + old contract. I have looked at the rental prices in the area of the new condominium, for a similar apartment they are about 1200 euros cold.

At the moment, I just can’t quite come to terms with the usual risks that everyone has on their mind, in relation to this total amount. The decision swings between "yes, go for it" and "better not."

I would do it immediately given the circumstances, provided the object is liked.

What does the market look like? What do comparable rental apartments cost? Please specify €/sqm. If one knew the city, one could look at the market. How large is the apartment?

I haven't slept a wink for the last 2 days now, you wish you never even had the option to make such a purchase.