Quite the contrary. After 3 weeks, I would instead piece together the initial situation and considerations back then with your previous suggestions and tips into a "state of affairs" (I took 3 hours for this ).
Since there were occasional confusions in the thread:
Our income:
From October 2017 next higher basic salary level + elimination of the entry salary deduction of a total of 16% = €6,223.76
+ family allowance (married + 2 children) = €6,558.74 (prospectively (without consideration of possible salary rounds (usually +2% per year)) in the year 2025 = €6,873.32, 2030 = €6,998.22, 2035 = €7,123.36, etc.)
Child benefit and tax refund
Child benefit and tax refund will NOT be included in the house financing on your advice hereafter.
(As of June 2016) with 2 children child benefit for 18 years provides an additional €380 per month in the account, meaning: 216 months x €380 = €82,080
(As of 2016) the tax refund usually amounts to a total of €4,000 per year. With 37 years of full employment that is €148,000.
I understand the argument on this topic: In the admittedly unrealistic but theoretically possible case, the government could abolish both the child benefit payment and the tax refund without replacement. So we do NOT plan with them in the future. PS: The argument that one wants to use the money for something else (rather than "treats") might be acceptable to others, but for me PERSONALLY it does not count. We have our Hamburg plan, which involves targeted saving for exactly such moments and thus makes such "treats" by tax refund unnecessary.
If in practice we do actually receive child benefit payments or tax refunds, these (according to the new model also the child benefit) will be used exclusively for repaying the loan.
Equity and loss of earnings
The loss of earnings will amount to 2 years in total, i.e. 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 (this is not planned) or has to do so out of necessity.
And here lies the first buried dog, and I think Cookies was absolutely right: If a disabled child is born, or a healthy one becomes such, we have a problem.
Expected costs
Costs have been (and are being) corrected after discussions.
The first architect spoke of €630,000 up until moving in the furniture, the second of €700,000, also COMPLETE.
We have an appointment with a third architect next week. We will know more precisely only when we invest money and have a draft drawn up. The possibility of cost-saving construction was suggested. We are thinking it thoroughly (garage size, basement(size), house or room size(s)) and want to bring this up with the architect as well, as stated.
So far, the costs for the retaining wall, which the municipality wants to take over, have also NOT been deducted, since nothing has been agreed in writing yet. Theoretically, however, this represents a potential saving of a not insignificant amount.
Lirum larum... current status €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 sum per year. That makes a monthly installment of €2,250 and (assuming not a single special repayment) a residual debt after 20 years (then we are 50 years old) of €360,000.
Household plan / standard of living
Calculated really exclusively with two salaries €6,558.74:
- Private health insurance was supplemented by the child contribution (the calculation result came today by call: about €30-40 per child) So I calculate a total of €40.
- Coverage against accidents inside and outside (restricted and total occupational disability, as well as death)
- €1,500 per year for vacations
- €1,500 per year for repairs, inspections (TÜV) and such
- €700 per month for food, drinks + drugstore
- €1,200 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 tables)
etc. etc.
There remain €560 per month
WITHOUT child benefit - WITHOUT tax refund
Now the big calculations begin..
€560 for diapers, clothes, and such?
What will the "new" car cost? €5,000? €15,000?
Elimination of care costs with starting 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 = +€4,000?
Next basic salary level = + x€?
...
Our conclusion - current status
If I run through all this now without child benefit and without tax refund and without salary increases, I say:
It is feasible, but until the children start primary school, it is not a life free of worries.
If I calculate it with child benefit, tax refund, and salary increases, I think:
It is absolutely feasible and I look forward to this future.
The big BUT
1. The prerequisite is the €700,000 (As Steffen said "650k loan with €5,500 net should work" or exactly €700k with €6,500)
--> BUT as already said: because the total costs are not really clear, it makes the decision so difficult. Especially since, as stated, we can hardly get more precise figures at the moment...
2. As stated: If a disabled child is born, or a healthy one becomes such, we have a problem...
That is how I see it at the moment.....
Oh yes.. And yes, I admit openly and honestly... we are clutching at straws at the moment.. it is the perfect plot.. the interest rate is low and we want to live in this place. No other comparable plot will be developed in the next years. The south slope is completely built up. In the neighboring town we are talking about at least €350 per m² plus. Other places do not come into question for us as potential home. Either here or nowhere. If we bury this construction project, we bury every further one for us. Then only the option of a buyer remains... a purchase in town or next door for less money. But when that would be, only God knows... if it goes badly, never, or too late regarding interest and aging development.
Therefore we fight for it...
I do not see the risk that we run into a trap, but, and as you have already written several times, whether the "gain" will ultimately be really satisfactory is (at this point) actually quite doubtful...
So I really say once 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 baseless (and furthermore wrong) assumption regarding the planned financing method. Then follows a "don't forget the divorce," which is fundamentally not wrong but was incredibly destructive from the start. Then came theses like "harakiri," which either stood there without arguments or were semi-supported with lame ones (you: €400-500 for food, drinks, and drugstore, we: €700 in the plan... huh?) Then those exaggerated examples regarding shoes, spa, and vacation, on which we supposedly, according to the insinuation, want to "do without." Each of us has different ideas and views regarding personal lifestyle, the form of society as such, and education. Your personal lifestyle and ideas of a great vacation (to stick with the practical example) therefore need not necessarily be a benchmark and law for others. The same applies to the "crummy" plot (which you never saw, by the way). Just because you cannot imagine playing ball, or much more, not even a happy childhood on such a plot, does not automatically and per se apply to every human being on this planet. That is not enough... you base your assumptions concerning financing conditions (income, interest, repayment, term) on your own assumptions instead of considering (or reading?) those laid out by me, and finally accuse me of "digging in" now? So much ego... if you were a teacher, I would have pulled this cudgel out now..
Typical teacher I suppose math Still think you are rushing into disaster. But to each their own. Clarify the construction and financing. If a bank supports it, good for you. I would have that retaining wall confirmed in writing given the slope. Costs a lot of money