Saarschwabe
2016-06-01 18:22:45
- #1
I think saarschwabe is now digging in his heels.
Quite the opposite. After 3 weeks, I would instead piece together the original situation or initial considerations along with your previous suggestions and tips into a "state of affairs" (it took me 3 hours for that ).
Since there were occasional confusions in the thread:
Our income:
From October 2017 next higher basic salary level + elimination of the entry-level pay reduction of a total of 16% = €6,223.76
+ family allowance (married + 2 children) = €6,558.74 (prospectively (without taking into account any pay rounds (usually + 2% per year)) in the year 2025 = €6,873.32, 2030 = €6,998.22, 2035 = €7,123.36 etc.)
Child benefits and tax refunds
Child benefits and tax refunds are, following your advice, NOT included in the house financing calculation!
(As of June 2016) with 2 children, for 18 years there is €380 more per month from child benefits on the account, i.e.: 216 months x €380 = €82,080
(As of 2016) the tax refund amounts generally to a total of €4,000 per year. With 37 years of full employment, that equals €148,000.
I understand the argument on this topic: In the admittedly unrealistic but theoretically possible case, politics could abolish both child benefit payments and tax refunds without replacement. So we do NOT plan with those. PS: The argument that the money would be used for something else (than a little extra, so to speak) might work for others, but does NOT count PERSONALLY for me. For that, we have our Hamburg plan that is aimed at saving precisely for such moments and thus makes a “little extra” through tax refunds unnecessary.
Should we actually receive child benefit payments or tax refunds in practice, these (under the new model also the child benefit) will without exception be used to repay the loan.
Equity and loss of earnings
The loss of earnings will amount to a total of 2 years, meaning 24 x minus €1,479.37 = €35,504.88
The available equity will be reserved and used for this --> €35,504.88 - €27,500 = €8,004.88
These almost €8,000 naturally increase if my better half stays at home longer (which is not planned) or is forced to do so.
And here lies a first major problem, and I think Cookies said it completely right: If a disabled child is born, or a healthy child becomes one, we have a problem.
Expected costs
Costs have been (and are being) corrected after discussions.
The first architect spoke of €630,000 up to the furnishing, the second of €700,000 also COMPLETELY.
We have an appointment with a third architect next week. We will only know more precisely when we invest money and have a design drawn up. The possibility of cost-saving construction was suggested. We are thinking about this intensively (garage size, cellar(size), house or room size(s)) and want to bring this up with the architect as mentioned.
So far, the costs for the retaining wall, which the municipality wants to cover, have NOT been deducted, as nothing has yet been agreed in writing. Theoretically, there is significant saving potential here.
Lirum larum… Status quo: €700,000.
Loan conditions
€700,000 at 1.85% effective annual interest and 2% repayment fixed for 20 years and a special repayment option of 5% of the loan amount per year. This results in a monthly rate of €2,250 and (assuming NO single special repayment) a residual debt after 20 years (then we are 50 years old) of €360,000.
Household budget / standard of living
Calculated really only with two salaries of €6,558.74:
- Private health insurance was supplemented by the child contribution (the result of the calculation came today by phone: approximately €30-40 per child) so I calculate altogether €40.
- Insurance against accidents from inside and outside (partial and total inability to work, as well as death)
- €1500 per year for vacations
- €1500 per year for repairs, inspections (TÜV) and such
- €700 per month for food, drinks + drugstore
- €1200 money for gifts per year
- €300 pocket money per month for both of us
- €700 care costs for both children (costs taken from the municipality’s contribution table)
etc. etc.
There remain €560 per month
WITHOUT child benefit - WITHOUT tax refund
Now the real calculations begin..
€560 for diapers, clothes and such?
What will the “new” car cost? €5,000 €15,000?
Elimination of care costs when attending primary school or one year before = + €700?
Elimination of monthly loan installment after 10 years = + €354?
Maybe child benefit after all = +€380?
Maybe tax refund after all = + €4000?
Next basic salary level = + x€?
...
Our conclusion - current status
If I play this all through now without child benefits and without tax refunds and without salary increases, I say:
This is doable, but life until the children start primary school is not free of worries.
If I calculate with child benefits, tax refunds and salary increases, I think:
This is absolutely doable and I look forward to this future.
The big BUT
1. The prerequisite is the €700,000 (as Steffen said “650k loan with 5500 net should work” or exactly 700k with 6500)
--> BUT as I already said: since the total costs are not really clear, it makes the decision difficult. Especially since, as written, we currently only have difficulty getting more precise numbers...
2. As written: If a disabled child is born, or a healthy child becomes one, we have a problem...
That’s how I see it currently.....
Oh yes.. and yes, I admit openly and honestly... we are currently clinging to it.. it’s the perfect plot.. the interest rate is low and we want to live in this place. No other comparable plot will be developed here in the coming years. The south slope is completely built up. In the neighboring town, we talk about at least €350 per m² plus. Other places are not an option for us as potential homes. Either here or nowhere. If we bury this construction project, we bury every other one for us. Then only the option of “Abzahler” remains... a purchase in town or nearby for less money. When that would be, only God knows.. if it goes badly, never, or in terms of interest rate and aging development too late.
That’s why we are fighting for it...
I do not see the risk of walking into a trap, but, and you have already written this several times, whether the “gain” in the end is really satisfactory is (as of now) indeed quite doubtful...
So I really say again a big thank you for reading and for the advice you give us here!
Many greetings from Swabia
One more PS to HilfeHilfe:
Your first comment was simply a completely unfounded (and beyond that false) assumption regarding the planned financing approach. Then followed “don’t forget the divorce,” which is fundamentally not wrong, but came across incredibly destructively from the start. Then theses like “Harakiri,” which were either left without arguments or supported by shaky reasoning (you: €400-500 for food, drinks and drugstore, us: €700 in the plan... huh?) Then those exaggerated examples regarding shoes, thermal baths and vacations, from which we supposedly, according to the accusation, want to “do without.” Each of us has different ideas and views regarding personal lifestyle, society as such and parenting. Your personal lifestyle and ideas of a great vacation (to stay with the practical example) therefore by no means must be the standard and law for others. The same applies to the “lousy” plot (which you, by the way, never saw). Just because you can’t imagine playing ball, or even having a happy childhood on such a plot, doesn’t automatically and per se apply to every other human on Earth. As if that was not enough… you base your assumptions regarding the financing conditions (income, interest, repayment, term) on your own assumptions instead of considering (or reading?) those I presented and in the end accuse me of now digging in my heels? Such ego… if you were a teacher, I would have pulled out this club by now…